Income Tax Officer, Kanpur V. M/s Sterling Medicals Pvt. Ltd., Kanpur

ITA 640/LKW/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 5159 (ITAT-LUCKNOW)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-11-2013
• Assessment Year: 2010-2011
• Appeal Filed On: 16-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAFALI SWAROOP
• Assessee Lawyers: NAVEEN BHARGAVA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.640/LKW/2013 A.Y.:2010 - 11 INCOME TAX OFFICER, WARD - 6(2), KANPUR. VS. M/S STERLING MEDICALS PVT. LTD., 15/263, BHARGAVA HOSPITAL BUILDING, CIVIL LINES,KANPUR. PAN:AAJCS1319L (APPELLANT) (RESPONDENT) C.O.NO.41/LKW/2013 (IN ITA NO.640/LKW/2013) A.Y.:2010 - 11 M/S STERLING MEDICALS PVT. LTD., 15/263, BHARGAVA HOSPITAL BUILDING, CIVIL LINES, KANPUR. PAN:AAJCS1319L VS. INCOME TAX OFFICER, WARD - 6(2), KANPUR. (OBJECTOR) (RESPONDENT) REVENUE BY SMT. SAFALI SWAROOP, D.R. ASSESSEE BY SHRI NAVEEN BHARGAVA, C.A. DATE OF HEARING 18/11/2013 DATE OF PRONOUNCEMENT 2 7 / 1 1 / 2 0 1 3 O R D E R PER A. K. GARODIA, A.M. THE APPEAL IS FILED BY THE REVENUE AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE, WHICH ARE DIRECTED AGAINST THE ORDER OF CIT(A) - I, KANPUR DATED 08/04/2013 FOR ASSESSMENT YEAR 2010 - 11. 2 2. THE CROSS OBJECTION WAS NOT PRESSED B Y LEARNED A.R. OF THE ASSESSEE AND ACCORDINGLY THE SAME IS DISMISSED AS NOT PRESSED. 3. IN ITS APPEAL , THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.94,24,177/ - MADE ON ACCOUNT OF INTEREST INCOME WITHOUT APPRECIATING THE FACTS BROUGHT ON RECORD BY THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. 2. THAT THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT THE A.O. HAD BASED HIS ACTION ON LAW AS LAID DOWN BY THE SUPREME COURT AND OTHER COURTS AND HAS NEGATED THESE CONCLUSIONS OF THE A.O. WITHOUT CONTROVERTING THEM. 3. THE ORDER OF THE CIT(A), KANPUR BEING ERRONEOUS, UNJUST AND BAD IN LAW BE VACATED AND THE ORDER OF THE AO BE RESTORED. 4. THAT THE APPELLANT C RAVES LEAVE TO MODIFY ANY OF THE GROUNDS OF APPEAL OR TAKE ADDITIONAL GROUND DURING THE PENDENCY OF THIS APPEAL. 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS THE LEARNED A.R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE FIND THAT A CLEAR FINDING IS GIVEN BY LEARNED CIT(A) THAT THE AMOUNT OF INTEREST RECEIVABLE FOR CURRENT YEAR IS RS. 40,69,195/ - BUT SINCE THE BORROWED FUND HAS BEEN DIRECTLY USED IN MAKING INTEREST BEARING LOAN, THE ASSESSEE IS ENTITLED TO CLAIM DEDUCTION OF INTEREST AND THE RATIO LAID DOWN BY HON'BLE APEX COURT IN THE CASE OF TUTICORIN ALKALI CHEMICALS AND 3 FERTILIZERS LTD. VS COMMISSIONER OF INCOME - TAX [1997] 227 ITR 172 (SC) IS NOT APPLICABLE IN THE PRESENT CASE. HE HAS ALSO GIVEN A FINDING THAT IN THE PRESENT CASE , BOTH THESE AMOUNTS I.E. INTEREST PAYABLE AND INTEREST RECEIVABLE ARE IDENTICAL AND THEREFORE, THERE WOULD NOT BE ANY INCOME. HE HAS DIRECTED THE ASSESSING OFFICER TO VERIFY REGARDING THE APPLICABILITY OF SECTION 40A(IA) OF THE ACT. THIS FINDING OF LEARN ED CIT(A) COULD NOT BE CONTROVERTED BY LEARNED D.R. OF AND REVENUE AND SINCE THE EXPENDITURE AND INCOME IS SAME, NO INCOME CAN BE ADDED IN THE HANDS OF THE ASSESSEE ALTHOUGH THERE MAY BE DEFECT IN THE ACCOUNTING OF THE ASSESSEE. HENCE, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDERS OF LEARNED CIT(A) ON THIS ISSUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE IS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 2 7 / 1 1 / 2 0 1 3 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. DR, ITAT, LUCKNOW ASSTT. REGISTRAR