M/s Splendid Aparna Projects Ltd., Hyderabad V. DCIT, Circle-3(2), Hyderabad

MA 257/HYD/2013

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 1396 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 28-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADAGIRI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER MA.NO.257/HYD/2013 ARISING OUT OF ITA.NO.52/HYD/2012 ASSESSMENT YEAR 2008-2009 M/S. SPLENDID APARNA PROJECT (P) LTD. HYDERABAD PAN AAJCS0099P VS. DCIT, CIRCLE 3 (2) HYDERABAD (APPLICANT) (RESPONDENT) FOR ASSESSEE : MR. KC DEVDAS FOR REVENUE : MS. B YADAGIRI DATE OF HEARING : 10.01.2014 DATE OF PRONOUNCEMENT : 31.01.2014 ORDER PER B. RAMAKOTAIAH, A.M. THIS MISCELLANEOUS APPLICATION RAISED BY THE ASSESSEE AGAINST THE ORDER OF ITAT, HYDERABAD BENCH-A IN ITA.NO. 52/HYD/2012 DATED 04.10.2013. THE ASSESSEE S EEKS FOR RECTIFICATION OF CERTAIN FACTS AND FIGURES ARISING OUT OF PARA 9 OF THE TRIBUNAL ORDER. 2. IT WAS CONTENDED IN THE MISCELLANEOUS APPLICATION BY THE ASSESSEE AS UNDER : 4. THE APPELLANT SUBMITS THAT AT PARAGRAPH 9 THE HONBLE TRIBUNAL HA STATED THAT THE REPAYMENT OF LOAN ADVANCED TO APARNA CONSTRUCTIONS WAS ON 5.2.2007. MA.NO.257/HYD/2013 M/S. SPLENDID APARNA PROJECTS (P) LTD. HYD. THE APPELLANT SUBMITS THAT THE REPAYMENT OF LOAN BY APARNA CONSTRUCTIONS WAS ON 25.07.2007 AND 5.2.2007 AS FACTUALLY REFLECTED AT PAGE 167 OF THE PAPER BOOK. THE DATE OF 5.2.2007 MENTIONED IN THE TRIBUNAL ORDER REPRESENTS THE DATE ON WHICH THE LOAN WAS GIVEN TO APARNA CONSTRUCTION AS REFLECTED AT PAGE 4 OF THE PAPER BOOK. 5. FURTHER THE TRIBUNAL HAS OBSERVED AT PARAGRAPH 9 AT 10 TH LINE AS UNDER : HOWEVER, AS SEEN FROM SCHEDULE, ASSESSEE HAS EXPLAINED ONLY SOURCE OF RS.17.24 CRORES WHEREAS THE INITIAL INVESTMENT WAS RS.21.50 CRORES. THE APPELLANT SUBMITS THAT : 1. THERE IS A MISTAKE APPARENT FROM RECORD ON THE ABOV E FINDINGS AS RS.17.24 CRORES WAS EXPLAINED OUT OF THE AVAILABILITY OF FUNDS UPTO 27 TH JULY, 2007. THE INVESTMENT IN MUTUAL FUNDS UPTO 28 TH JULY, 2007 WAS RS. 14 CRORES WHILE RS. 7.50 CRORES FLEW FROM THE AVAILABILITY OF INTERNAL ACCRUALS ON RS. 8.65 CRORE S. PLEASE SEE PAGE 4B OF PAPER BOOK. THUS THE INVESTMENT OF RS. 21.50 CRORES IN JULY 2007 AT RS.14 CRORES AND AT RS.7.50 CRORES ON 3.8.2007 STANDS FULLY EXPLAINED. 2. THE APPELLANT FURTHER SUBMITS THAT THE DISALLOWANCE OF INTEREST IF ANY SHOULD BE IN TWO PHASES AS UNDER : A. ON A SUM OF RS.10 CRORES FROM 26.07.2007 TO 13.12.2007 ON THE PRODUCT SYSTEM AS A SUM OF MA.NO.257/HYD/2013 M/S. SPLENDID APARNA PROJECTS (P) LTD. HYD. RS.10.50 CRORES WAS REDEEMED OVER A PERIOD OF TIME FROM 14.08.2007 TO 13.12.2007. B. ON RS.12.05 CRORES FROM 28.01.2008 TO 18.02.2008 ON WHICH DATE THE ENTIRE MUTUAL FUNDS WERE REDEEMED. IN SHORT THE INTEREST DISALLOWANCE ON RS.12.05 CRORES SHOULD BE FOR A PERIOD OF ONE MONTH ONLY. C. THE INTEREST RECEIPT AT RS.1,46,71,794/- WAS OFFERE D TO TAX AND THE DISALLOWANCE IF ANY, SHOULD BE AFTER TAKING THESE RECEIPTS INTO ACCOUNT. THE APPELLANT PRAYS THAT THERE ARE INADVERTENT MISTAKES IN THE AFORESAID PARAGRAPHS OF THE TRIBUNAL WHICH NEEDS RECTIFICATION. 3. AFTER PERUSING THE RIVAL SUBMISSIONS AND THE PAPE R BOOK PLACED ON RECORD, THERE SEEMS TO BE CERTAIN MISTAKES CREPT IN WHILE ANALYZING THE ISSUE IN PARA 9. THE TRIBUNAL WRON GLY NOTED THE DATE OF ADVANCE AS DATE OF REPAYMENT AND THE CONTENTIONS RAISED IN PARA 4 ABOVE ARE CORRECT. MOREOVER, THERE SEEMS TO BE SOME CONFUSION IN TAKING THE AMOUNT OF OWN F UNDS AS THE ASSESSEE HAS SUBMITTED DETAILS IN TWO SEPARATE TABLES WHICH WERE NOT COORDINATED IN PAGE 4 AND PAGE 4B OF THE PAPER BOOK. THEREFORE, AN ERROR HAS CREPT IN THE ORDER WITH REFERENC E TO EXPLANATION FOR THE INITIAL INVESTMENT OF RS. 21.50 CRORES. SINCE THE MATTER WAS ALREADY REMITTED TO THE A.O. TO EXAMIN E THE FACTS, THE A.O. IS DIRECTED TO TAKE INTO CONSIDERATION THE ABOVE CONTENTION AND DETERMINE THE INTEREST TO BE DISALLOWE D ON THE FACTS OF THE CASE, AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. MA.NO.257/HYD/2013 M/S. SPLENDID APARNA PROJECTS (P) LTD. HYD. 4. TO THIS EXTENT, PARA-9 OF THE ORIGINAL ORDER STANDS MODIFIED ACCORDINGLY. 5. IN THE RESULT, M.A. OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.01.2014. SD/- SD/- (SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMB ER HYDERABAD, DATE 31 ST JANUARY, 2014 VBP/- COPY TO 1. M/S. SPLENDID APARNA PROJECT (P) LTD. PLOT NO.203, R EGENCY HOUSE, 680, SOMAJIGUDA, HYDERABAD 082. C/O. M/S. SEKHAR & CO. C.AS. 133/4, RASHTRAPATHI ROAD, SECUNDERABAD. 2. DCIT, CIRCLE-3(2), 7 TH FLOOR, I.T. TOWERS, HYDERABAD 3. CIT(A)-IV, HYDERABAD. 4. CIT-III, HYDERABAD 5. D.R. A BENCH, ITAT, HYDERABAD.