Vardhman Yarns & Threads Ltd., Ludhiana V. DCIT, Ludhiana

MA 100/CHANDI/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6729 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 21-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: SUBHASH AGGARWAL
• Keywords: Capital receipt

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER MA NO.98/CHD/2017 (IN ITA NO.530/CHD/2012 (ASSESSMENT YEAR: 2008-09) MA NO.99/CHD/2017 (IN ITA NO.569/CHD/2012 (ASSESSMENT YEAR: 2008-09) M/S VARDHMAN YARNS & THREADS LTD., VS. THE A.C.I.T., CIRCLE-1, LUDHIANA. LUDHIANA. PAN : AABCM4692E MA NO.100/CHD/2017 (IN ITA NO.1159/CHD/2013 (ASSESSMENT YEAR: 2009-10) M/S VARDHMAN YARNS & THREADS LTD., VS. THE D.C.I.T., CIRCLE-1, LUDHIANA. LUDHIANA. PAN : AABCM4692E & MA NO.101/CHD/2017 (IN ITA NO.2/CHD/2014 (ASSESSMENT YEAR: 2009-10) M/S VARDHMAN YARNS & THREADS LTD., VS. THE D.C.I.T., CIRCLE-1, LUDHIANA. LUDHIANA. PAN : AABCM4692E (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI SUBHASH AGGARWAL, ADV. RESPONDENT BY : SHRI MANJIT SINGH, SR.DR DATE OF HEARING : 09.02.2018 DATE OF PRONOUNCEMENT : 18.08.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER : ALL THE PRESENT MISCELLANEOUS APPLICATIONS HAVE BEE N MOVED BY THE SAME ASSESSEE PLEADING THEREIN THAT A MISTAKE APPARENT ON RECORD HAD OCCURRED IN THE CONSOLIDATED ORDER OF THE TRIBUNAL DATED 13.7.2017, PASSED IN ITA NOS.530/CHD/2012, ITA NO.569/CHD/2012 , 2 ITA NO.1159/CHD/2013 AND ITA NO.2/CHD/2014 RELATING TO ASSESSMENT YEARS 2008-09, 2008-09, 2009-10 & 200 9- 10 RESPECTIVELY. IT HAS BEEN PLEADED IN THE APPLICA TION THAT THE TRIBUNAL HAS FAILED TO CONSIDER/ADJUDICATE ADDITIONAL GROUND OF APPEAL WHICH READS AS UNDER: THAT THE LD. AO HAS ERRED IN NOT TREATING THE INTEREST REIMBURSEMENT UNDER TUF SCHEME AS CAPITAL RECEIPT SINCE THE ISSUE INVOLVED IN ALL THE MISCELLANEOUS APPLICATIONS IS SAME, THEY WERE HEARD TOGETHER AND ARE DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND HAV E ALSO GONE THROUGH THE RECORDS. WE FIND THAT THIS ADDITIONAL GROUND HAS BEEN DISCUSSED IN THE ORDER O F THE TRIBUNAL IN PARA 7 ONWARDS. THE TRIBUNAL LIMITED TH E FINDINGS TO THE EXTENT THAT THE ASSESSEE WILL BE EN TITLED TO THE BENEFIT OF CLAIMING DEDUCTION OF THE REIMBURSEM ENT OF INTEREST EXPENDITURE UNDER TUFS SCHEME IF THE ASSES SEE HAS NOT CLAIMED THE DEDUCTION OF THE SAID INTEREST EXPENDITURE IN THE YEAR OF INCURRING. IT WAS, THER EFORE, DIRECTED IF THE ASSESSEE HAS NOT CLAIMED THE SAID I NTEREST EXPENDITURE AS DEDUCTION OF EXPENDITURE IN EARLIER YEARS, THE ASSESSEE WOULD BE ENTITLED TO THE NETTING OF TH E SAID REIMBURSED AMOUNT AGAINST THE INTEREST EXPENDITURE. HOWEVER, THE ISSUE WHETHER THE AFORESAID REIMBURSEM ENT OF INTEREST IN TUFS SCHEME IS A CAPITAL RECEIPT OR NOT, HAS REMAINED UN-ADJUDICATED. WE, THEREFORE, FIND MERIT IN THE 3 APPLICATIONS MOVED BY THE ASSESSEE. THEREFORE, THE CONSOLIDATED ORDER DATED 13.7.2017 IS RECALLED ON T HE LIMITED POINT OF ADJUDICATION OF THE ABOVE ADDITION AL GROUND AS TO WHETHER THE INTEREST REIMBURSEMENT UND ER TUFS SCHEME IS CAPITAL RECEIPT OR NOT. 3. IN THE RESULT, ALL THE MISCELLANEOUS APPLICATIO NS FILED BY THE ASSESSEE ARE TREATED AS ALLOWED. COPY OF THIS ORDER BE ALSO PLACED IN THE MAIN APPE AL FILES. ORDER PRONOUNCED IN THE OPEN COURT ON --------- SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 18 TH JUNE, 2018 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH