Sh. Mehar Chand Bhatia, Ludhiana V. ACIT, Ludhiana

ITA 90/CHANDI/2013

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5200 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-05-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 04-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH ABROL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 90/CHD/2013 ASSESSMENT YEAR: 2009-10 SH. MEHAR CHAND BHATIA, VS. THE ACIT, CIRCLE VI, PROP ROYAL ASSOCIATES, LUDHIANA LUDHIANA PAN NO. ABFPB7591M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. GURJEET SINGH, CA RESPONDENT BY : SH. ASHISH ABROL, CIT DR DATE OF HEARING : 12.02.2018 DATE OF PRONOUNCEMENT : 12.02.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THIS APPEAL HAS BEEN REMANDED BACK BY THE HON'BLE P UNJAB & HARYANA HIGH COURT VIDE ORDER DATED 20.9.2016. THE ISSUE INVOLVED IN THIS APPEAL IS REGARDING THE DISALLOWANCE MADE B Y THE LOWER AUTHORITIES U/S 36(1)(III) OF THE INCOME-TAX ACT, 1 961 (IN SHORT 'THE ACT'). 2 2. THE PLEA OF THE ASSESSEE WAS THAT IT HAD INTERES T FREE FUNDS AVAILABLE WHICH HAVE BEEN WITHDRAWN FOR PERSONAL US E / ADVANCEMENT OF LOAN. WHEREAS, THE CASE OF THE ASSESSING OFFICE R WAS THAT THE ASSESSEE HAD WITHDRAWN INTEREST BEARING FUNDS FOR P ERSONAL USE AND, HENCE, HE MADE THE IMPUGNED DISALLOWANCE OF INTERES T EXPENDITURE U/S 36(1)(III) OF THE ACT. THE MATTER TRAVELLED TO THE HON'BLE PUNJAB & HARYANA HIGH COURT. THE HON'BLE HIGH COURT VIDE ORD ER DATED 20.2.2016 PASSED IN ITA NO-2-2016 (O&M) HAS OBSERVE D THAT THE ISSUE HAS NOT BEEN PROPERLY EXAMINED AT THE LEVEL O F THE CIT(A) AND FURTHER THE SUBMISSIONS OF THE ASSESSEE THAT IT HA S RECEIVED INTEREST FREE FUNDS THROUGH CHEQUES FROM M/S GARG INFRASTRUC TURE PRIVATE LIMITED, EVEN HAS NOT BEEN CONSIDERED AT THE LEVEL OF THE TRIBUNAL. HOWEVER, THE HON'BLE HIGH COURT HAS MADE A FURTHER OBSERVATION THAT EVEN THE BALANCE SHEET OF THE ASSESSEE WAS NOT CLEA R IN THIS REGARD AND THAT THE MATTER IS REQUIRED TO BE EXAMINED AFRE SH IN THIS RESPECT. 3. THE LD. REPRESENTATIVES OF BOTH THE PARTIES, BEF ORE US, HAVE SUBMITTED THAT THE MATTER IN THE FACTS AND CIRCUMST ANCES OF THE CASE SHOULD BE RESTORED TO THE ASSESSING OFFICER SO AS T O ENABLE THE ASSESSEE TO FURNISH RELEVANT AND REQUIRED DOCUMENTS TO PROVE HIS CLAIM OF HAVING INTEREST FREE FUNDS AVAILABLE WITH HIM INCLUDING THE AMOUNT OF RS. 5.38 CRORES RECEIVED FROM M/S GARG IN FRASTRUCTURE PRIVATE LIMITED THOUGH BANKING CHANNEL. HENCE, AT THE REQUEST OF BOTH THE REPRESENTATIVES OF THE PARTIES, THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE ISSUE AFRESH. NEEDLESS TO SAY THAT ASSESSING OFFICER WILL GIVE PROPER OPPORTU NITY TO THE 3 ASSESSEE TO FURNISH THE RELEVANT DOCUMENTS / EVIDEN CE IN THIS RESPECT AND THEN TO PASS A SPEAKING ORDER IN ACCORDANCE WIT H LAW. 4. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 12.02.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR