Tejaswani Engineering Private Limited, Hyd, Hyderabad V. DCIT, Circle-2(3), Hyd, Hyderabad

ITA 698/HYD/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9841 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 10-06-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 143(3); 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO S . 698 /HYD/20 16 & 195/HYD/2019 (ASSESSMENT YEAR S : 20 11 - 12 & 2008 - 09 ) 1. M/S. TEJASWINI ENGINEERING P. LTD., HYDERABAD. PAN AABCT 6421A ..APPELLANT. VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(3), HYDERABAD. ..RESPONDENT. 2. M/S. I CON COMMODITIES PVT. LTD., (EARLIER KNOWN AS GANGA EXIM PVT. LTD.) HYDERABAD. PAN AABCG 3773A ..APPELLANT. VS. INCOME TAX OFFICER, WARD 2(2), HYDERABAD. .RESPONDENT. APPELLANT S BY : SHRI P. MURALI MOHANA RAO. RESPONDENT BY : SHRI ROHIT MAJUMDAR (D.R.) DATE (S) OF HEARING : 10.06 . 2021. DATE OF PRONOUNCEMENT : 12 .0 7 .2021. O R D E R PER S HRI S.S. GODARA, J.M. : THESE TWO ASSESSEE S ' APPEALS FOR ASSESSMENT YEAR 2011 - 12 AND 2008 - 09 ARISE AGAINST THE CIT(A) - 2 & CIT(A) - 7, HYDERABADS ORDER (S) DT.26.2.2018 AND 4.10.2018 PASSED 2 ITA NO S . 698/HYD/2016 & 195/HYD/2019 IN CASE NO .0067/2014 - 15 AND 252/CIT(A) - 7/2016 - 17 INVOLVING PROCEEDINGS U/S. 143(3) AND 143(3) R.W.S. 147 OF THE ACT; RESPECTIVELY. SINCE THE GROUNDS INVOLVED ARE IDENTICAL, THE INSTANT COMMON ORDER IS PASSED FOR THE SAKE OF CONVENIENCE AND BREVITY. HEARD THE ASSESSEES AS WELL AS DEPARTMENT. CASE FILES PERUSED. 2. W E NOTICE AT THE OUTSET THAT APART FROM CHALLENGING CORRECTNESS OF 147/148 PROCEEDINGS IN LATTER APPEAL 1959/HYD/2019; BOTH THESE TWO ASSESSEES S EEK TO REVERSE THE ASSESSING OFFICER AS WELL AS CIT(A)S IDENTI CAL ACTION IN DISALLOWING THE RESPECTIVE FINANCE CHARGES OF RS.2,68,40,275 AND RS.25,86,702 RESPECTIVELY. BOTH THE LEARNED REPRESENTATIVES INFORMED US DURING THE COURSE OF HEARING THAT THESE TWO ASSESSEES ARE GROUP ENTITIES BELONGING TO M/S. GLOBAL GROUP. AND THAT BOTH THE LOWER AUTHORITIES HAVE DISALLOWED THE FOREGOING FINANCIAL CHARGES INVOLVING VARYING SUMS AFTER DOUBTING GENUINENESS THEREOF SINCE INVOLVING GLOBAL GROUP S BUSINESS ACTIVITIES ONLY. WE 3 ITA NO S . 698/HYD/2016 & 195/HYD/2019 NOTICE IN THIS FACTUAL BACKDROP THAT THE ISSUE O F FINANCIAL CHARGES IN M/S. GLOBAL GROUP ENTITIES LOAN IS NO MORE RES INTEGRA. THIS TRIBUNALS CO - ORDINATE BENCH ORDER IN ASSESSEE'S VERY GROUP CONCERNS APPEALS ITA NOS.406, 543 AND 1269/HYD/2014 (M/S. GLOBAL FORGING LTD.) HAS ALREADY DE CIDED THAT ONCE T HE SAID ASSESSEE HAD FILED ALL THE RELEVANT DETAILS PERTAINING TO DISCOUNTING OF BILLS FROM OUTSIDE PARTY AS WELL AS PROVIDING GOODS TO THE SISTER CONCERN (S) ON CREDIT BASIS, THE SAME AMPLY PROVE D GENUINENESS OF ITS CORRESPONDING CLAIM. TH IS VERY REASONI NG HAS BEEN REITERATED MUTATIS MUTANDIS IN M/S. B P FERR I UM INDUSTRIES PVT. LTD. VS. DCIT CASE; GLOBAL GROUP ENTITY IN 1741/HYD/2017 FOR ASSESSMENT YEAR 2011 - 12 DT.20.5.2021. FACED WITH THIS SITUATION, WE ADOPT JUDICIAL CONSISTENCY IN THESE TWIN GROUP E NTITIES CASES AS WELL AND DELETE THE IMPUGNED FINANCIAL CHARGES DISALLOWANCE OF RS.2,68,40,275 AND RS.25,86,702; APPEAL - WISE RESPECTIVELY. THE CORRESPONDING GROUND S TO THIS EFFECT STAND ACCEPTED. 4 ITA NO S . 698/HYD/2016 & 195/HYD/2019 THE FORMER ASSESSEE'S FORMER APPEAL 698/HYD/2016 RAISING TH IS SOLE SUBSTANTIVE GRIEVANCE IS ACCEPTED. 4. COMING TO THE LATTER ASSESSEE'S APPEAL IN 195/HYD/2019, LEARNED COUNSEL IS FAIR ENOUGH IN SUBMITTING THAT HE IS NOT PRESSING FOR ITS LEGAL GROUND CHALLENGING VALIDITY OF REASSESSMENT AT THIS STAGE. ITS APPEAL ITA NO.195/HYD/2019 IS PARTLY ACCEPTED. 5. THESE ASSESSEES'S APPEALS 698/HYD/2016 AND 195/HYD/2019 ARE ALLOWED AND PARTLY ALLOWED IN ABOVE TERMS; RESPECTIVELY. A COPY OF THIS COMMON ORDER BE PLACED IN RESPE CTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 12TH JU LY , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 12 .0 7 .2021. * REDDY GP 5 ITA NO S . 698/HYD/2016 & 195/HYD/2019 COPY TO : 1. I) M/S.TEJASWINI ENGINEERING PVT. LTD., 8 - 2 - 268/2/B/5, ROAD NO.2, BANJARA HILLS, HYDERABAD. II) ICON COMMODITIES PVT. LTD., 5A,VENGAL RAO NAGAR, HYDERABAD. 2. DCIT,CIRCLE (2)3, HYDERABAD. & ITO, WARD 2(2), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 2, HYDERABAD. CIT(A) - 7, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.