M/s. Srimukha Precision Products, CHENNAI V. ACIT, CHENNAI

MA 239/CHNY/2016

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5184 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 28-10-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 31-08-2016
• Court: TRIBUNAL
• Department Lawyers: M DURAI
• Assessee Lawyers: M KARUNAKARAN

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER M.P. NO. 23 9 /MDS/2016 [IN I.T.A.NO. 93 /MDS/201 6 ] ASSESSMENT YEAR :20 08 - 0 9 M/S. SRIMUKHA PRECISION PRODUCTS, PLOT NO. 51, X SOUTH PHASE ROAD, AMBATTUR INDUSTRIAL ESTATE, CHENNAI 600 05 8 . [PAN: AAA FS1929A ] VS. THE ASSISTANT COMMISSIONER O F INCOME TAX, NON CORPORATE CIRCLE 7, CHENNAI 600 034. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI M. KARUNAKARAN , ADVOCATE / RESPONDENT BY : SHRI M. DURAI PANDIAN , J CIT / DATE OF HEARING : 28 . 1 0 .201 6 / DATE OF P RONOUNCEMENT : 04 . 0 1 .201 7 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : BY MEANS OF THIS MISCELLANEOUS PETITION, THE ASSESSEE SEEK S TO GET MODIFIED THE ORDER PASSED BY THE TRIBUNAL IN I .T.A. NO. 93 /MDS/201 6 DATED 2 0 . 0 7 .2016 RELEVANT TO THE ASSESSMENT YEAR 20 08 - 0 9 . BY REFERRING TO THE PETITION WITH REGARD TO THE DISALLOWANCE OF INTEREST ON THE ADVANCES OF .1,17,00,000/ - TO M/S. ASHVA TECHNOLOGIES LTD., THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE PETITIONER HAS NOT AT ALL ADVANCED LOAN TO M.P . NO . 23 9 /M/ 16 2 M/S. ASHVA TECHNOLOGIES LTD., BUT, IT WAS ADVANCED BY THE PARTNER OF THE FIRM SHRI S.A. RAMAMOORTHY. THEREFORE, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED THAT THERE IS A MISTAKE APPARENT IN THE ORDER OF THE TRIBUNAL SUSTAINING TH E ADDITION MADE BY THE ASSESSING OFFICER AND PLEADED THAT THE ORDER OF THE TRIBUNAL MAY BE SUITABLY MODIFIED. 2 . ON THE OTHER HAND, T HE LD. DR HAS SUBMITTED THAT THERE WAS NO MISTAKE APPARENT IN THE ORDER PASSED BY THE TRIBUNAL. 3. WE HAVE HEARD BOTH SIDES AND PERUSED THE ORDER PASSED BY THE TRIBUNAL . WE HAVE ALSO ONCE AGAIN PERUSED THE LEDGER ACCOUNT AS WELL AS BALANCE SHEET OF THE ASSESSEE FIRM. D URING THE COURSE OF APPELLATE PROCEEDINGS, THE LD. CIT(A) HAS VERIFIED THE CURRENT ACCOUNT OF THE PARTNE R SHRI S.A. RAMAMOORTHY AS WELL AS THE BALANCE SHEET OF THE ASSESSEE FIRM AND FOUND THAT THE OPENING BALANCE WAS .57,39,510/ - AND THE CLOSING BALANCE WAS .1,38,01,825/ - . FROM THE LEDGER ACCOUNT FOR THE PERIOD 01.04.2007 TO 31.03.2008, IN THE APPELLATE ORDER, T HE LD. CIT(A) HAS EXTRACTED THE DATE - WISE BILLS OF AMOUNT PAID FROM THE CURRENT ACCOUNT OF SHRI S.A. RAMAMO ORTHY AND OBSERVED THAT DUE TO THE AMOUNTS ADVANCED TO M/S. ASHVA TECHNOLOGIES LTD., THE RUNNING BALANCE HAS GONE INTO NEGATIVE BALANCE SEVERAL TIMES DURING THE YEAR. THE IMPLICATION OF THE NEGATIVE BALANCE IN THE CURRENT ACCOUNT WOULD MEAN THAT THE FIRM I S ADVANCING ITS OWN MONEY TO THE PARTNER, WHO IN TURN, ADVANCING THE SAME TO M/S. ASHVA M.P . NO . 23 9 /M/ 16 3 TECHNOLOGIES LTD. THEREFORE, THE LD. CIT(A) SUSTAINED THE ADDITION MADE BY THE ASSESSING OFFICER. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, WE FIND NO APPARENT MISTAKE I N THE ORDER PASSED BY THE TRIBUNAL AND ACCORDINGLY, THE PLEA RAISED IN THE PETITION IS DISMISSED. 4. IN THE RESULT, THE MISCELLANEOUS PETITION OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED ON THE 04 TH JANUARY , 201 7 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJ ARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 04 . 0 1 .201 7 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.