Satern Griha Nirman Pvt. Ltd., Kolkata v. D.C.I.T.,Circle-1(2), Kolkata

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY ACCOUNTANT MEMBER] I.T.A. NO. 1389/KOL/2019 ASSESSMENT YEAR: 2013-14 SATERN GRIHA NIRMAN PVT. LTD..........................................................................................APPELLANT [PAN: AAICS 0875 L] VS. DCIT CIRCLE-1(2) KOLKATA.....................................................................RESPONDENT APPEARANCES BY: SH. S. JHAJHARIA ADV. APPEARED ON BEHALF OF THE ASSESSEE. SH. DHRUBAJYOTI RAY JCIT SR. DR APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 05 TH 2019 DATE OF PRONOUNCING THE ORDER : NOVEMBER 27 TH 2019 ORDER PER J. SUDHAKAR REDDY AM :- THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-16 KOLKATA [CIT(A) FOR SHORT] DATED 25.04.2019 U/S 250 OF THE INCOME TAX ACT 1961 (THE ACT FOR SHORT) FOR THE AY 2013-14. 2. AFTER HEARING RIVAL CONTENTIONS I FIND THAT THE SOLE ISSUE THAT ARISES FOR MY ADJUDICATION IS WHETHER THE LD. CIT(A) WAS RIGHT IN CONFIRMING THE DISALLOWANCE OF 85 995/- BEING INTEREST PAYMENT ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE AO HAS NOT GIVEN ANY PROPER REASONS FOR MAKING THE DISALLOWANCE. THE LD. CIT(A) ON THE GROUND THAT NO SPECIFIC DETAILS WERE FILED BEFORE HIM CONFIRMED THE DISALLOWANCE. 4. IN MY VIEW THIS INTEREST EXPENDITURE HAS TO BE ALLOWED AS THE ASSESSEE HAS DEMONSTRATED THAT IT HAD EARNED INTEREST INCOME OF 6 42 835/- AND THAT THIS EXPENDITURE INCOME IS RELATABLE TO THE EARNING OF THE INTEREST INCOME. THUS I ALLOW THIS CLAIM OF THE ASSESSEE. 2 I.T.A. NO. 1389/KOL/2019 ASSESSMENT YEAR: 2013-14 SATERN GRIHA NIRMAN PVT. LTD. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA THE 27 TH NOVEMBER 2019. SD/- SD/- [ABY T. VARKEY] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27.11.2019 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. SATERN GRIHA NIRMAN PVT. LTD. C/O. M/S. SALARPURIA JAJODIA & CO. 7 C.R. AVENUE 3 RD FLOOR KOLKATA-700 072. 2. DCIT CIRCLE-1(2) KOLKATA. 3. CIT(A)-16 KOLKATA. (SENT THROUGH E-MAIL) 4. CIT- 5. CIT(DR) KOLKATA BENCHES KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA BENCHES