M/s. National Builders, Baroda V. The ACIT., Circle-2, Baroda

ITA 682/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5460 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-07-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 21-02-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K DHANESTA
• Assessee Lawyers: S N SOPARKAR
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM) ITA NO.682/AHD/2008 A. Y.: 2004-05 M/S. NATIONAL BUILDERS, 81/A, KUNJ SOCIETY, ALKAPURI, VADODARA 390 007 VS THE A. C. I. T., CIRCLE 2 (2), AAYAKAR BHAVAN, RACE COURSE, BARODA PA NO. AAEFN 8804 F (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. N. SOPARKAR, AR RESPONDENT BY SHRI R. K. DHANESTA, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II, BARODA DATED 03 -12-2007 FOR ASSESSMENT YEAR 2004-05 IN CONFIRMING THE DISALLOWA NCE OF INTEREST OF RS.4,19,455/-. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE AO NOTE D THAT ON THE SAME MATTER THE LEARNED CIT(A) HAS CONFIRMED DISALL OWANCE OF INTEREST COST MADE IN RESPECT OF FUNDS DIVERTED FOR NON-BUSI NESS PURPOSES FOR ASSESSMENT YEARS 2000-01, 2001-02 AND 2003-04. THE ADDITION OF RS.4,19,455/- WAS ACCORDINGLY MADE FOR DIVERTING IN TEREST BEARING FUNDS FOR NON-BUSINESS PURPOSES. THE LEARNED CIT(A) NOTED THAT INTEREST BEARING FUNDS OBTAINED FROM BANK WERE GIVEN TO THE SISTER CONCERN IN ASSESSMENT YEAR 2000-01 AND SINCE THEN THE INTEREST IS DISALLOWED. THE LEARNED CIT(A) FOLLOWING THE ORDER OF THE LEARNED C IT(A) FOR ASSESSMENT YEARS 2001-02 AND 2003-04 DISMISSED THIS GROUND OF APPEAL OF THE ASSESSEE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THIS ISSUE HAS BEEN CONSIDERED BY ITAT AHMEDABAD BENCH FOR ASSESSM ENT YEARS 2000- ITA NOS.682/AHD/2008 M/S. NATIONAL BUILDERS VS ACIT, CIR 2(2), BARODA 2 01, 2001-02 AND 2003-04 IN ITA NO. 1524 AND 1128/AH D/2005 AND 2467/AHD/2006 VIDE ORDER DATED 14-09-2007 IN WHICH THE TRIBUNAL RESTORED THE MATTER BACK TO THE FILE OF THE AO TO D ECIDE THE MATTER AFRESH. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMIT TED THAT IN ASSESSMENT YEAR 2002-03 ALSO THE TRIBUNAL IN THE CA SE OF THE SAME ASSESSEE IN ITA NO. 3828/AHD/2008 VIDE ORDER DATED 23-01-2009 RESTORED THE MATTER BACK TO THE FILE OF THE AO. COP IES ARE FILED ON RECORD. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMIT TED THAT THE ASSESSEE HAS INTIMATED HIM THAT THE AO HAS ALLOWED DEDUCTION IN THE SET ASIDE PROCEEDINGS. HE HAS, THEREFORE, SUBMITTED THAT THE MATTER MAY BE REMANDED TO THE AO FOR RE-CONSIDERATION. THE LEARNE D DR DID NOT DISPUTE THE ABOVE FACT. 4. CONSIDERING THE ABOVE HISTORY OF THE ASSESSEE IN WHICH EARLIER YEARS SIMILAR INTEREST HAS BEEN DISALLOWED ON WHICH THE TRIBUNAL RESTORED THE MATTER TO THE FILE OF THE AO, THEREFORE, BY FOL LOWING THE EARLIER ORDERS OF THE TRIBUNAL, WE SET ASIDE THE ORDERS OF THE AUT HORITIES BELOW AND RESTORE THIS ISSUE TO THE FILE OF THE AO FOR RE-CON SIDERATION AFRESH AS WAS EARLIER DIRECTED BY THE TRIBUNAL IN THE CASE OF THE ASSESSEE IN EARLIER YEARS AS MENTIONED ABOVE. AS A RESULT, THIS GROUND OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE ORDER PRONOUNCED ON 30-07-2010 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 30-07-2010 LAKSHMIKANT/- ITA NOS.682/AHD/2008 M/S. NATIONAL BUILDERS VS ACIT, CIR 2(2), BARODA 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD