Khandelia Oil & General Mills Ltd., Chandigarh V. Addl. CIT, Chandigarh

MA 5/CHANDI/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6379 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 19-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Commercial expediency

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER M.A. NO. 05/CHD/2019 (IN ITA NO. 548/CHD/2015) (ASSESSMENT YEAR: 2011-12) M/S KHANDELIA OIL & GENERAL MILLS VS. THE ADD. CIT PVT. LTD., PLOT NO. 23, INDUSTRIAL RANGE 1 AREA, PHASE II, CHANDIGARH CHANDIGARH PAN: AAACK6655N (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SMT. CHANDRAKANTA DATE OF HEARING : 15/02/2019 DATE OF PRONOUNCEMENT : 06/05/2019 O R D E R PER DR.B.R.R.KUMAR, A.M . THE PRESENT MISC. APPLICATION HAVE BEEN FILED BY TH E ASSESSEE AND REQUESTING FOR RECTIFICATION OF THE ORDER DATED 04/06/2018 IN ITA NO. 548/CHD/2015. 2. IN THE PRESENT MISC. APPLICATION ASSESSEE HAS RE QUESTING FOR MENTIONING THE DECISION OF THE HON'BLE ITAT. THE GROUNDS READS AS UNDER: PARA 9 READ WITH PARA 9.4 IN RESPECT OF GROUND NO . 5 OF THE ASSESSEES APPEAL RELATING TO DISALLOWANCE OF INTEREST UNDER SECTION 36(1)(III) ON ADVANCE OF HARYANA STATE AGRICULTURE MARKETING BOARD FOR PURCH ASE OF SHOP, THE DECISION OF THE HON'BLE ITAT IS TO BE MENTIONED. 3. WE HAVE PERUSED THE RECORD. THE PARA 9.4 NOW REA DS US UNDER AFTER ALLOWING THE MISC. APPLICATION 9.4 WE HAVE GONE THROUGH THE FACTS ON RECORD, PLAC ING RELIANCE IN THE CASE OF BRIGHT ENTERPRISES PVT. LTD. VS. CIT 381 IT R 107-WHERIN HONBLE P&H HIGH COURT HAS OBSERVED THAT IF THE INTEREST FREE F UNDS ARE AVAILABLE A PRESUMPTION WOULD ARISE THAT INVESTMENT WOULD BE OU T OF INTEREST FREE FUNDS. THE COMMERCIAL EXPEDIENCY IS NOT IN DOUBT AS THE ADVANCE WAS GIVEN FOR PURCHASE OF SHOP FOR THE BUSINESS OF THE COMPANY IN THE MANDI AREA TO BE SET UP BY THE BOARD. HENCE, THE APPEAL OF THE REVENUE ON THIS GROUND IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (DR. B.R.R . KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 06/05/2019 AG COPY TO: 1.THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A), 4. THE CIT, 5. THE DR