ITO, CHENNAI V. Chentech Computer Services Pvt. Ltd., CHENNAI

ITA 770/CHNY/2015

• Counselvise Citation: 77021714 RSA 2015
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 09-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 10-04-2015
• Court: TRIBUNAL
• Department Lawyers: B NISCHAL
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.770 /MDS./2015 ( !' #' / ASSESSMENT YEAR :2010-11) INCOME TAX OFFICER, CORPORATE WARD I(3), AAYAKAR BHAVAN, VI FLOOR, 121 M.G.ROAD, CHENNAI. 600 034. VS. M/S.CHENTECH COMPUTER SERVICES PVT LTD., NO.75A,DR.RADHADRISHNAN SALAI, MYLAPORE, CHENNAI 600 004. PAN ( / APPELLANT ) ( / RESPONDENT ) $% & ' / APPELLANT BY : MR.B.NISCHAL, JCIT D.R ()$% & ' / RESPONDENT BY : MR.R.VIJAYARAGHAVAN,ADVOCATE * + & ,- / DATE OF HEARING : 09.07.2015 .# & ,- /DATE OF PRONOUNCEMENT : 22.07.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: ITA NO.770 /MDS/2015 2 THIS APPEAL IS FILED BY THE REVENUE, AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-I, CHENNA I DATED 30.12.2014 IN ITA NO.56/13-14/A-1 PASSED UNDER SEC .143(3) READ WITH SECTION SEC. 250 OF THE ACT. 2. THE REVENUE HAS RAISED THREE ELABORATE GROUNDS IN ITS APPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE REVENUE I S AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD DELETED THE ADDIT ION MADE ON ACCRUED INTEREST OF ` 4,48,72,068/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A COMPANY, ENGAGED IN THE BUSINESS OF INVESTMENT AND COMPUTER SOFTWARE SERVICES, FILED IT RETURN OF INCOME ON 08.10.2010 A DMITTING ITS TOTAL INCOME AS ` 38,216/-. SUBSEQUENTLY, THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT U/S.143(3) WAS COMPLETE D ON 08.03.2013 WHEREIN THE LD. ASSESSING OFFICER MADE A DDITION OF ` 4,48,72,068/- BEING ACCRUED INTEREST INCOME ON THE LOAN ADVANCED. ITA NO.770 /MDS/2015 3 THE LD. ASSESSING OFFICER HAD ARRIVED AT THIS CONCL USION BECAUSE THE ASSESSEE HAD ADVANCED LOAN OF RS.37,39,33,896/- TO MAXWORTH INVESTMENTS PVT.LTD., FOR INTEREST @ 12% BUT HAD NO T RECOGNIZED THE INTEREST RECEIVABLE AS ITS INCOME DURING THE RELEVA NT ASSESSMENT YEAR WHICH WORKS OUT TO ` 4,48,72,068/-. THE ASSESSEE HAD EXPLAINED BEFORE THE LD. ASSESSING OFFICER THAT M/S. MAXWORTH INVESTMENTS PVT LTD., WAS MAKING CONTINUOUS LOSS AND HAD INADEQUATE RESOURCES TO SETTLE ITS LIABILITY. ON APPEAL, THE LD. CIT (A) DE LETED THE ADDITION MADE BY THE LD. ASSESSING OFFICER BECAUSE ON THE SA ME ISSUE IN THE APPELLANTS OWN CASE IN ITA NOS.1242 &1243/MDS./200 8 FOR THE ASSESSMENT YEARS 2001-02 & 2002-03 AND ITA NOS.216 & 217/MDS./2011 FOR THE ASSESSMENT YEAR 2006-07 & 200 7-08, AND ITA NO.1968/MDS./2011 FOR THE ASSESSMENT YEAR 2008-09 A ND ITA NO.1410MDS.//2013 FOR THE ASSESSMENT YEAR 2009-10, THE CHENNAI BENCHES OF THE TRIBUNAL HAD DECIDED THE ISSUE IN FA VOUR OF THE APPELLANT. 4. THE LD. A.R. SUBMITTED BEFORE US THAT THE ISSUE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL FOR THE EARLIE R YEARS ON THE SAME ITA NO.770 /MDS/2015 4 ISSUE AND THEREFORE, REQUESTED THAT THE ORDER OF TH E LD. CIT (A) MAY BE CONFIRMED. THE LD. D.R ARGUED IN SUPPORT OF THE ORDER OF THE LD. ASSESSING OFFICER BUT COULD NOT CONTROVERT TO THE S UBMISSIONS OF THE LD. A.R. 5. AFTER HEARING BOTH SIDES, AND PERUSING THE ORDE R OF THE LD. CIT (A), WE FIND THAT THE ISSUE IS SQUARELY COVERED BY THE ORDER OF THE TRIBUNAL FOR THE EARLIER YEARS BASED ON WHICH THE L D. CIT (A) HAD DELETED THE ADDITION MADE BY THE LD. ASSESSING OFFI CER. THEREFORE WE DO NOT FIND IT NECESSARY TO INTERFERE WITH THE O RDER OF THE LD. CIT (A). 6. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER PRONOUNCED ON 22 ND JULY, 2015 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S.GANESAN) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 22 ND JULY, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. 7' 8+ /GF