MODERN SYNTEX(INDIA)LTD., Jaipur V. ADDL. CIT, Jaipur

ITA 654/JPR/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2021 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 25-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROLLY AGARWAL CIT DHK
• Assessee Lawyers: MADHUKAR GARG
• Keywords: Question of law
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 253 & 654/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 & 09-10. M/S. MODERN SYNTEX (INDIA) LTD., A-4, VIJAY PATH, TILAK NAGAR, JAIPUR. CUKE VS. THE ADDL. CIT, RANGE-6, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCM 1851 B VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MADHUKAR GARG (C.A) JKTLO DH VKSJ LS@ REVENUE BY : SMT. ROLLY AGARWAL (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 25.09.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 26/09/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE BY THE ASSESSEE PERTAINING TO ASSESSMENT YEARS 2008-09 AND 09-10 ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF LD. CIT (A)-II, JAIPUR DATED 12.2.2014 AND 09.07.2014 RESPECTIVELY. BOTH T HESE APPEALS ARE TAKEN UP TOGETHER AND ARE BEING DISPOSED OFF BY WAY OF A CON SOLIDATED ORDER SINCE IDENTICAL GROUNDS ARE RAISED, FOR THE SAKE OF CONVENIENCE AND BREVITY. FIRST, WE TAKE UP THE ASSESSEES APPEAL PERTAINING TO ASSESSMENT YEAR 200 8-09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : THAT THE LEARNED CIT (APPEALS) HAS ERRED IN HOLD ING THAT THE AMOUNT OF REMISSION OF LOAN IS TAXABLE IN THE HANDS OF THE APPELLANT AND CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING ADDITION OF RS. 13,37,90,502/- TO THE INCOME OF THE ASSESSEE. THE A DDITION SUSTAINED BY THE LEARNED CIT (APPEALS) IS ILLEGAL, UNJUSTIFIE D AND EXCESSIVE. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS TH E ACT) WAS FRAMED VIDE ORDER DATED 10 TH DECEMBER, 2010. WHILE FRAMING THE ASSESSMENT, THE AO MADE ADDITION ON ACCOUNT OF DISALLOWANCE OF REMISSION OF LIABILIT Y OF RS. 13,37,90,502/-. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD . CIT (A), WHO AFTER CONSIDERING THE SUBMISSIONS AND FOLLOWING THE DECISION OF TRIBU NAL IN THE ASSESSEES OWN CASE FOR EARLIER YEARS CONFIRMED THE ADDITION. NOW THE ASSE SSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SU BMITTED THAT THE ISSUE IS COVERED BY THE JUDGMENT OF THE HONBLE JURISDICTION AL HIGH COURT IN THE CASE OF ASSESSEE. HE SUBMITTED THAT THE ISSUE HAS BEEN DECI DED BY THE HONBLE JURISDICTIONAL HIGH COURT IN FAVOUR OF THE ASSESSEE. ON THE CONTRARY, THE LD. D/R SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE MATER IAL ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE H ONBLE JURISDICTIONAL HIGH COURT IN DB IT APPEAL NO. 147/2010 IN THE ASSESSEES OWN CAS E HAD FRAMED THE FOLLOWING QUESTION OF LAW :- WHETHER THE REMISSION OF PRINCIPAL AMOUNT OF LOAN OBTAINED FROM FINANCIAL INSTITUTIONS AND BANKS, CONSTITUTES A BEN EFIT OR PERQUISITE ARISING FROM BUSINESS AND WOULD FALL WITHIN THE AMB IT OF SECTION 28(IV) OF THE ACT ? THE HONBLE HIGH COURT AFTER CONSIDERING THE SUBMIS SIONS OF THE ASSESSEE, ANSWERED THE QUESTION AGAINST THE REVENUE. THEREFORE, RESPE CTFULLY FOLLOWING THE ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE IN DBIT APPEAL NO. 147/2010 MODERN SYNTEX (INDIA) LTD. VS. ASSISTANT C OMMISSIONER OF INCOME-TAX, WE HEREBY DIRECT THE AO TO DELETE THE DISALLOWANCE. AP PEAL OF THE ASSESSEE IS ALLOWED. NOW, WE TAKE UP THE APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2009- 10. WE HAVE ALREADY ADJUDICATED THIS ISSUE PERTAINI NG TO ASSESSMENT YEAR 2008-09 HEREIN ABOVE. SINCE IDENTICAL ISSUE HAS BEEN DECIDE D IN FAVOUR OF THE ASSESSEE, THEREFORE, FOLLOWING THE SAME, WE DIRECT THE AO TO DELETE THE DISALLOWANCE. THE APPEAL OF THE ASSESSEE IS ALLOWED. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 26.09.20 17. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 26/09/2017. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. MODERN SYNTEX (INDIA) LTD., JAIPUR. 2. THE RESPONDENT THE ADDL. CIT, RANGE-6, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 253 & 654/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR