The DCIT, Circle-5,, Ahmedabad v. Paras Pharmaceuticals Ltd.,, Ahmedabad

ITA 1685/AHD/2010 | 2007-2008
Pronouncement Date: 20-08-2010 | Result: Dismissed

Appeal Details

RSA Number 168520514 RSA 2010
Assessee PAN AAACP9268J
Bench Ahmedabad
Appeal Number ITA 1685/AHD/2010
Duration Of Justice 3 month(s) 1 day(s)
Appellant The DCIT, Circle-5,, Ahmedabad
Respondent Paras Pharmaceuticals Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 20-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 20-08-2010
Assessment Year 2007-2008
Appeal Filed On 19-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND D.C. AGRAWAL AM) ITA NO.1685/AHD/2010 A. Y.: 2007-08 THE D. C. I. T. CIRCLE-5 2 ND FLOOR CU SHAH COLLEGE BUILDING ASHRAM ROAD AHMEDABAD VS PARAS PHARMACEUTICALS LTD. 6-B PARAS HOUSE SATTAR TALUKA SOCIETY ASHRAM ROAD AHMEDABAD PA NO. AAACP 9268J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI BHUVNESH KULSHRESTHA DR RESPONDENT BY SHRI ASHWIN SHAH AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-XVI AHMEDA BAD DATED 08-03- 2010 FOR THE ASSESSMENT YEAR 2007-08 ON THE FOLLOW ING GROUNDS: 1. THE LD. COMMISSIONER OF INCOME TAX (A)-XI AHME DABAD HAS ERRED IN LAW AND ON FACTS IN DELETING DISALLOWA NCE OF INTEREST OF RS.21 72 000/- ON DOUBTFUL ADVANCES OF RS.1 21 CRORES GIVEN TO M/S. MADHAVDAS TULSIDAS & COMPANY. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE LD. COMMISSIONER OF INCOME TAX (A) - XI AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 2. THE LEARNED CIT(A) NOTED THAT IN EARLIER YEARS I TAT AHMEDABAD BENCH IN THE CASE OF THE ASSESSEE DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND ACCORDINGLY DELETED THE ADDITION. THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES SUBMITTED THAT ON THE SAME MATTER IN ISSUE ITAT AHMEDABAD BENCH IN ASSESSMENT YEAR 2005- 06 IN ITA NO.3565/AHD/2007 HAS DISMISSED THE DEPARTMENTAL APP EAL VIDE ORDER DATED 20-08-2010. ON CONSIDERATION OF THE ABOVE FAC TS WE FIND THAT THE ITA NOS. 1685/AHD/2010 DCIT CIR-5 AHD VS PARAS PHARMACEUTICALS LTD. 2 DEPARTMENTAL APPEAL IN ASSESSMENT YEAR 2005-06 HAS BEEN DISMISSED BY US VIDE ORDER OF THE EVEN DATE IN WHICH IT WAS HELD AS UNDER: 7. ON CONSIDERATION OF THE ABOVE FACTS IN THE LIGH T OF THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE M ENTIONED ABOVE WE DO NOT FIND ANY MERIT IN THE APPEAL OF TH E REVENUE. THE LEARNED CIT(A) DELETED THE ADDITION BY FOLLOWIN G THE ORDER OF THE TRIBUNAL IN THE CASE OF THE ASSESSEE AS WELL AS FOLLOWING HIS ORDER IN PRECEDING ASSESSMENT YEAR 2004-05. THE ORDER OF THE LEARNED CIT(A) FOR ASSESSMENT YEAR 2004-05 HAS BEEN CONFIRMED BY THE TRIBUNAL ON THE IDENTICAL FACTS. THEREFORE THERE IS NO ERROR IN THE ORDER OF THE LEARNED CIT(A ) IN DELETING THE ADDITION. EVEN OTHERWISE IT IS SETTLED LAW WHE N THE RECOVERY OF THE PRINCIPAL AMOUNT ITSELF IS IN DOUBT DUE TO VARIOUS DIFFICULTIES; THERE IS NO QUESTION OF ACCRU AL OF INTEREST IN FAVOUR OF THE ASSESSEE. IT IS ALSO SETTLED LAW T HAT UNDER INCOME TAX ACT WHAT IS TAXABLE IS THE REAL INCOME. NO NOTIONAL INTEREST CAN BE CHARGED TO TAX. SINCE IN THE EARLIE R YEAR SIMILAR ADDITIONS HAVE BEEN DELETED IN THE CASE OF THE ASSESSEE BY THE LEARNED CIT(A) AND HIS VIEW HAS BEE N UPHELD BY THE TRIBUNAL THEREFORE BY FOLLOWING THE SAME WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL. SAME IS ACCORDINGLY DISMISSED . 3. BY FOLLOWING THE SAME ORDER WE DISMISS THE DE PARTMENTAL APPEAL. 4. IN THE RESULT THE DEPARTMENTAL APPEAL IS DISMIS SED. ORDER PRONOUNCED ON 20-08-2010 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 20-08-2010 LAKSHMIKANT/- ITA NOS. 1685/AHD/2010 DCIT CIR-5 AHD VS PARAS PHARMACEUTICALS LTD. 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER DY. REGISTRAR ITAT AHMEDABAD