The ACIT, Anand Circle,, Anand v. M/s. Patel Tractor Co.Ltd.,, Anand.

ITA 1526/AHD/2005 | 2001-2002
Pronouncement Date: 20-08-2010 | Result: Dismissed

Appeal Details

RSA Number 152620514 RSA 2005
Bench Ahmedabad
Appeal Number ITA 1526/AHD/2005
Duration Of Justice 5 year(s) 2 month(s) 18 day(s)
Appellant The ACIT, Anand Circle,, Anand
Respondent M/s. Patel Tractor Co.Ltd.,, Anand.
Appeal Type Income Tax Appeal
Pronouncement Date 20-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 20-08-2010
Date Of Final Hearing 04-08-2010
Next Hearing Date 04-08-2010
Assessment Year 2001-2002
Appeal Filed On 01-06-2005
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH (BEFORE S/SHRI G.D. AGARWAL VICE-PRESIDENT AND MAHAVIR SINGH JUDICIAL MEMBER) ITA.NO.1526/AHD/2005 [ASSTT. YEAR : 2001-2002] ACIT ANAND CIRCLE ANAND. VS. PATEL TRACTOR CO. LTD. ANAND-CHIKODRA ROAD ANAND. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K.MADHU SUDAN ASSESSEE BY : NONE O R D E R PER G.D. AGRAWAL VICE-PRESIDENT: THIS IS REVENUES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II BARODA DATED 01.03.2005 ARISING OUT OF THE ORDER OF THE AS SESSING OFFICER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961. 2. THE GROUND NOS.1 AND OF THE APPEAL READ AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD.CIT(A) ERRED IN RESTRICTING THE INTEREST DISALLO WANCE OF RS.24 22 186/- TO RS.1 93 385/- ON ACCOUNT OF INTEREST FREE ADVANC ES. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD.CIT(A) FAILED TO APPRECIATE THE ISSUE OF INTERES T DISALLOWANCE MADE BY THE AO. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR O F THE ASSESSEE BY THE DECISION OF THE ITAT IN HIS OWN CASE FOR A.Y.1997-98 AND 199 8-99 VIDE ITAT NO.2675 AND 2500/AHD/2002 DATED 28.12.2007. THE CIT(A) WHI LE DIRECTING THE AO TO RE-COMPUTE THE DEDUCTION FOLLOWED HIS OWN ORDER FOR 1997-98 AND 1998-99. THE RELEVANT FINDINGS OF THE CIT(A) READS AS UNDER: ITA.NO.1526/AHD/2005 -2- 3.8 THE POSITION OF ADVANCES AS SUBMITTED BY THE C OUNSEL IS REPRODUCED AS UNDER: SR.NO . NAME OF PARTY ASSTT. YEAR (AMOUNT IN RS .) 2001-02 1998-1999 1997-98 I) PIYUSH STEEL LTD. 55 00 000 55 00 000 55 00 000 II) YOGESH K. PATEL 2 36 939 2 36 969 2 36 939 III) KHEDAR FOOD PRODUCTS 26 62 384 26 62 384 26 62 384 IV) KIRAN B. DESAI 3 00 000 3 00 000 3 00 000 V) NARANBHAI S. PATEL 4 89 232 - 2 50 000 VI) RAJUBHAI S. PATEL 8 00 000 30 00 000 - 3.9 IN CASE OF ABOVE LOANS IT CAN BE OBSERVED THAT THERE IS ONLY INCREASE IN LOAN IN THE CASE OF NARANBHAI S. PATEL DURING THE YEAR. THUS OTHER ADVANCES ARE OLD ADVANCES. FROM THE ORD ERS PASSED BY MY LEARNED PREDECESSOR IN APPELLATE ORDER NO.CAB/IV -22/01-02 IN ASSTT.YEAR 1998-99 DATED 17.6.2002 AND APPELLATE OR DER NO.CAB/IV-131/99-00 DATED 27.5.2002 FOR ASSTT YEAR 1997-98 IT IS HELD THAT ADVANCE TO PIYUSH STEEL LTD. WAS GIVEN OU T OF INTERNAL ACCRUAL OF FUNDS AS WELL AS INTEREST FREE FUNDS AVA ILABLE WITH THE APPELLANT. IN CASE OF ADVANCE TO KHEDKAR FOOD PROD UCTS OF RS.26 62 384 AND KIRAN B. DESAI OF RS.3 00 000 IT WAS OBSERVED BY CIT(A) THAT SAME WERE OLD ADVANCES THE INTEREST DI SALLOWANCE WAS DIRECTED TO BE DELETED. FOLLOWING THE SAME RATIO THE AO IS DIRECTED NOT TO CALCULATE INTEREST IN THESE THREE CASES FOR THE PURPOSE OF DISALLOWANCE. THAT THE DEPARTMENT HAD FILED THE APPEAL AGAINST TH E ORDER OF THE CIT(A) FOR A.Y.1997-98 AND 1998-99 HOWEVER THE ITAT B BEN CH AHMEDABAD VIDE ITS ORDER DATED 28.12.2007 (SUPRA) DISMISSED THE DEPART MENTS APPEAL. 4. IN VIEW OF THE ABOVE WE RESPECTFULLY FOLLOWING THE ABOVE DECISIONS OF THE ITAT IN ASSESSEES OWN CASE UPHOLD THE ORDER O F THE CIT(A) AND REJECT THE GROUND NO.1 AND 2 OF THE REVENUES APPEAL. 5. GROUND NO.3 OF THE REVENUES APPEAL READS AS UND ER: 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD.CIT(A) ALSO ERRED IN DELETING THE DISALLOWANCE O F RS.64 016/- MADE IN RESPECT OF VEHICLE EXPENSES. ITA.NO.1526/AHD/2005 -3- 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE ASSESSEE IS A LIMITED COMPANY AND THE CIT( A) DELETED THE DISALLOWANCE OUT OF VEHICLE EXPENSES FOLLOWING THE DECISION OF T HE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF SAYAJI IRON & ENGG. CO. 172 CTR 339 (GUJ). SINCE THE ISSUE IS COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT RESPECTFULLY FOLLOWING THE SAME WE UPHOLD THE ORDE R OF THE CIT(A) ON THIS POINT. 7. IN THE RESULT THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON 20 TH AUGUST 2010. SD/- SD/- (MAHAVIR SINGH) JUDICIAL MEMBER (G.D. AGARWAL) VICE-PRESIDENT PLACE : AHMEDABAD DATE : 20-08-2010 VK* COPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD