ITO, CHENNAI V. M/s. Shriram Trading and Transport Pvt. Ltd., CHENNAI

ITA 782/CHNY/2011

• Counselvise Citation: 78221714 RSA 2011
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-12-2011
• Assessment Year: 1995-1996
• Appeal Filed On: 29-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R SIVARAMAN
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.782(MDS)/2011 ASSESSMENT YEAR : 1995-96 THE INCOME-TAX OFFICER, COMPANY WARD IV(1), CHENNAI. VS. M/S.SHRIRAM TRADING AND TRANSPORT PVT. LTD., MYLAPORE, CHENNAI-600 004. PAN AAACS7709P. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.B.NAIK, IRS, COMMISSIONER O F INCOME-TAX. RESPONDENT BY: SHRI R.SIVARAMAN, ADVOCATE. DATE OF HEARING : 1 ST DECEMBER, 2011 DATE OF PRONOUNCEMENT : 8 TH DECEMBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 1995-96. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-V AT CHENNAI, DATED 28-1-2011 AND ARISES OUT OF THE ASSESSMENT CO MPLETED - - ITA NO.782 OF 2011 2 UNDER SECTION 143(3) READ WITH SECTION 254 OF THE I NCOME-TAX ACT, 1961. 2. THE GROUNDS RAISED BY THE REVENUE IN THIS APPEA L READ AS UNDER:- 1. THE LEARNED CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF INTEREST AMOUNTING TO ` 7,48,859/-. 2. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE INTEREST AMOUNTS DID NOT PERTAIN TO THE RELEVANT PREVIOUS YE AR. 3. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT TH E ASSESSEE BEFORE THE ASSESSING OFFICER DID NOT PRODU CE ANY EVIDENCE TO SHOW THAT THE LOAN WAS ORIGINALLY TAKEN AS INTEREST FREE LOAN OR TO SHOW THAT A SETTLEMENT WAS REACHED TO PAY INTEREST AT 18%. 4. IN THESE CIRCUMSTANCES THE CIT(A) ERRED IN ADMI TTING FRESH EVIDENCE IN THE FORM OF A COPY OF THE BOARD R ESOLUTION DATED 14-12-1994. 5. HAVING REGARD TO THE PROVISIONS OF RULE 46A OF IT RULES, THE LEARNED CIT(A) OUGHT TO HAVE GIVEN THE ASSESSIN G - - ITA NO.782 OF 2011 3 OFFICER A REASONABLE OPPORTUNITY TO EXAMINE THE EVI DENCE PRODUCED BEFORE THE LEARNED CIT(A). 3. WE HEARD SHRI R.B.NAIK, THE LEARNED COMMISSIONE R OF INCOME-TAX APPEARING FOR THE REVENUE AND SHRI R. SRINIVASAN, THE LEARNED COUNSEL APPEARING FOR THE RESPONDENT-AS SESSEE. THIS MATTER WAS EARLIER PLACED BEFORE THE TRIBUNAL IN THE FIRST ROUND OF PROCEEDINGS BEFORE IT. THE MATTER WAS REM ITTED BACK TO THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH. BUT, IN THE SECOND ROUND ALSO THE DISALLOWANCE HAS BEEN MADE, W HICH IS DELETED BY THE COMMISSIONER OF INCOME-TAX(APPEALS). 4. THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS CONSIDERED THE HISTORY OF THE CASE AND HAS COME TO THE CONCLUSION THAT THE ASSESSEE NEVER AGREED ON THE MA TTER OF INTEREST TO M/S.SHRIRAM CITY UNION FINANCE LTD. TH E ASSESSING AUTHORITY HAS REPEATED HIS CONCLUSION ONLY ON THE B ASIS OF HIS PRESUMPTION. WHAT IS NOT EARNED AND WHAT IS NOT ADM ITTED BY THE ASSESSEE CANNOT BE THRUST INTO ITS HANDS UNLESS MAT ERIALS ARE AVAILABLE ON HAND. WE, THEREFORE, FIND THAT THERE IS NO GROUND FOR US TO INTERFERE WITH THE ORDER PASSED BY THE COMMIS SIONER OF - - ITA NO.782 OF 2011 4 INCOME-TAX(APPEALS). THE APPEAL FILED BY THE REVEN UE IS LIABLE TO BE DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 8 TH OF DECEMBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 8 TH DECEMBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.