DCIT, C-1, Ludhiana V. M/s Majestic Auto Limited, Ludhiana

ITA 799/CHANDI/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9069 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-11-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 30-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: SUBHASH AGGARWAL

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R.KUMAR, ACCOUNTANT MEMBER ./ ITA NO. 406/CHD/2018 / ASSESSMENT YEAR : 2012-13 THE DCIT, CIRCLE-1 LUDHIANA VS. M/S MAJESTIC AUTO LIMITED, C-48, FOCAL POINT, LUDHIANA ./PAN NO: AABCM2162M / APPELLANT /RESPONDENT APPEAL AGAINST THE ORDER OF CIT(A)-1,LUDHIANA DAT ED 24.01.2018 ./ ITA NO. 799/CHD/2018 / ASSESSMENT YEAR : 2013-14 THE DCIT, CIRCLE-1 LUDHIANA VS. M/S MAJESTIC AUTO LIMITED, C-48, FOCAL POINT, LUDHIANA ./PAN NO: AABCM2162M / APPELLANT /RESPONDENT APPEAL AGAINST THE ORDER OF CIT(A)-1,LUDHIANA DAT ED 16.03.2018 !' /DATE OF HEARING : 01.11.2018 #$%& !' / DATE OF PRONOUNCEMENT : . 2018 ./ ITA NO. 804/CHD/2018 / ASSESSMENT YEAR : 2014-15 THE DCIT, CIRCLE-1 LUDHIANA VS. M/S MAJESTIC AUTO LIMITED, C-48, FOCAL POINT, LUDHIANA ./PAN NO: AABCM2162M / APPELLANT /RESPONDENT APPEAL AGAINST THE ORDER OF CIT(A)-1,LUDHIANA DAT ED 16.03.2018 '! ( /ASSESSEE BY : SH SUBHASH AGGARWAL, ADVOCATE ) ( / REVENUE BY : SH. MANJIT SINGH, SR.DR. !' /DATE OF HEARING : 01.11.2018 #$%& !' / DATE OF PRONOUNCEMENT : 13.12 . 2018 ITA NOS. 406, 799 & 809-CHD-2014- M/S MAJESTIC AUTO LIMITED, LUDHIANA 2 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEALS HAVE BEEN PREFERRED BY THE REVENUE AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME T AX (APPEALS)-I, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)] AGITATING THE ACTION OF THE CIT(A) IN DELETING THE ADDITIONS MADE BY THE ASSESS ING OFFICER ON ACCOUNT OF DISALLOWANCE OUT OF INTEREST EXPENDITURE U/S 36( 1)(III) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. WE HAVE HEARD THE RIVAL CONTENTIONS. A PERUSAL O F THE ORDERS OF THE CIT(A) REVELS THAT THE LD. CIT(A) HAS GIVEN A CATEG ORICAL FINDING THAT ASSESSEE WAS POSSESSED OF SUFFICIENT OWN / INTEREST FREE FUNDS TO COVER THE CAPITAL WORK IN PROGRESS AND CAPITAL ADVANCES. HE, THEREFORE, RELYING UPON THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF BRIGHT ENTERPRISES PVT LTD VS. CIT, JALANDHAR 381 ITR 107 AND ALSO CONSIDERING THE FACT THAT THE ASSESSEE HAD NOT BORROWED ANY SPE CIFIC LOANS FOR THE AFORESAID CAPITAL ADVANCES AND CAPITAL WORK IN PRO GRESS, DELETED THE ADDITIONS SO MADE BY THE ASSESSING OFFICER. 3. THE ISSUE IS NOW SQUARELY COVERED BY THE VARIOUS DECISIONS OF THE HIGH COURTS INCLUDING THAT OF THE DECISION OF THE H ON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF BRIGHT ENTERPRISES PVT. LTD VS. CIT, JALANDHAR (SUPRA) , CIT VS. KAPSONS ASSOCIATES (2016) 381 ITR 204 (P& H) AND THE LATEST DECISION OF THE COORDINATE BENCH OF THE TRIB UNAL (INCIDENTALLY CONSISTED OF BOTH OF US) IN THE CASE OF ACIT VS. JANAK GLOBAL RESOURCES PVT LTD ITA NO. 470/CHD/2018 ORDER DATED 16.10.201 8, WHEREIN, THE ISSUE ITA NOS. 406, 799 & 809-CHD-2014- M/S MAJESTIC AUTO LIMITED, LUDHIANA 3 HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY ALSO CONSIDERING THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF HERO CYCL ES VS. CIT 379 ITR 347 (SC) AND ALSO FINDINGS ARRIVED IN THE CASE OF A VON CYCLES LTD. VS. CIT IN ITA NO.277 OF 2013. THE HON'BLE COURTS HAVE HELD THAT IF THE ASSESSEE IS POSSESSED OF SUFFICIENT OWN INTEREST F REE FUNDS TO MEET THE INVESTMENTS / INTEREST FREE ADVANCES, THEN, UNDER THE CIRCUMSTANCES, PRESUMPTION WILL BE THAT INTEREST FREE ADVANCES / I NVESTMENTS HAVE BEEN MADE BY THE ASSESSEE OUT OF OWN FUNDS / INTEREST FR EE FUNDS. IN VIEW OF THIS, THERE IS NO MERIT IN THE APPEALS OF THE REVENUE AND THE SAME ARE ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.12.2018 SD/- SD/- ( . . , & ' / B.R.R. KUMAR) () / ACCOUNTANT MEMBER ( / SANJAY GARG ) / JUDICIAL MEMBER DATED : .2018 .. $+ !,- .-! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. /! / CIT 4. /! ( )/ THE CIT(A) 5. -01 ! 2 , ' 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7 / GUARD FILE $+ / BY ORDER, 8 ) / ASSISTANT REGISTRAR