ACIT, Circle-7, Pune v. Western Maharashtra Development Corporation Ltd.,, Pune

ITA 430/PUN/2013 | 2008-2009
Pronouncement Date: 22-10-2013 | Result: Dismissed

Appeal Details

RSA Number 43024514 RSA 2013
Assessee PAN AAACW1864B
Bench Pune
Appeal Number ITA 430/PUN/2013
Duration Of Justice 8 month(s) 7 day(s)
Appellant ACIT, Circle-7, Pune
Respondent Western Maharashtra Development Corporation Ltd.,, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 22-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 22-10-2013
Assessment Year 2008-2009
Appeal Filed On 14-02-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI R.K. PANDA ACCOUNTANT MEMBER ITA NO. 430/PN/2013 (ASSTT.YEAR : 2008-09) ACIT CIRCLE-7 PUNE .. APPELLANT VS. WESTERN MAHARASHTRA DEVELOPMENT CORN. LTD. 2 ND FLOOR KUBERA CHAMBERS DR. RAJENDRA PRASAD ROAD SHIVAJINAGAR PUNE-411005 .. RESPONDENT PAN NO. AAACW1864B APPELLANT BY : SHRI WALIMBE RESPONDENT BY : SHRI SHARAD VAZE DATE OF HEARING : 22-10-2013 DATE OF PRONOUNCEMENT : 22-10-2013 ORDER PER R.K. PANDA AM : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DATED 15-09-2011 OF THE CIT(A)-III PUNE RELATING TO ASSE SSMENT YEAR 2008-09. 2. THE ONLY GROUND RAISED BY THE REVENUE READS AS U NDER : HONBLE CIT(A)-III HAS ERRED IN DISALLOWING ACCRUED INTEREST ON SEED MONEY LOANS OF RS.1 55 25 000/-. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESS EE COMPANY IS A GOVT. OF MAHARASHTRA UNDERTAKING AND ITS MAIN BUSINESS IS TO ENSURE THE DEVELOPMENT OF INDUSTRIES AND TO PROMOTE INDUSTRIAL ISATION OF THE WESTERN MAHARASHTRA REGION BY UNDERTAKING PREPARING AND EX ECUTING THE INDUSTRIAL SCHEMES EITHER SOLELY OR JOINTLY WITH THE GOVT. OF MAHARASHTRA OR ANY OTHER CORPORATION COMPANY ASSOCIATION INSTITUTION OR I NDIVIDUALS. THE COMPANY 2 WAS INCORPORATED ON 03-12-1970. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER OBSERVED FROM THE VARIOUS DETAILS FILED BEFORE HIM THAT THE ASSESSEE HAD MAINTAINED ITS BOO KS OF ACCOUNT ON ACCRUAL BASIS IN RESPECT OF ALL ITEMS OF AMOUNTS EXCEPTING THE AMOUNT RECEIVED BY IT ON SEED MONEY LOANS/ASSISTANCE. FROM THE VARIOUS D ETAILS FILED BY THE ASSESSEE HE NOTED THAT THE ACCRUED INTEREST UPON SU CH SEED MONEY LOANS UNDER EDUCATED UNEMPLOYMENT SCHEME FOR THIS YEAR IS AT 155.25 LAKHS. HAD THE SAID INTEREST BEEN ACCOUNTED FOR ON ACCRUAL BAS IS PROFIT TO THE EXTENT OF THE AFORESAID AMOUNT OF RS.155.25 LAKHS WOULD HAVE INCREASED. ACCORDING TO HIM WHEN ALL THE ITEMS OF ACCOUNTS WERE MAINTAI NED ON MERCANTILE SYSTEM OF ACCOUNTING ON ACCRUAL BASIS THERE WAS NO BASIS FOR ACCOUNTING INTEREST ON SEED MONEY LOANS ON CASH BASIS. 3.1 THE AO FURTHER NOTED THAT DURING THE YEAR 2007- 08 THE ADDITION OF RS.2 23 92 000/- WAS MADE TO THE TOTAL INCOME DECLA RED ON ACCOUNT OF ACCRUED INTEREST ON SEED MONEY LOANS GIVEN BY THE A SSESSEE COMPANY. HE ALSO EXAMINED THE PROVISIONS OF SECTION 145(1) 145 (2) AND THE PROVISIONS OF SECTION 43D. REJECTING THE SUBMISSIONS GIVEN BY THE ASSESSEE THE ASSESSING OFFICER DISALLOWED AN AMOUNT OF RS.1 55 2 5 000/- OUT OF ACCRUED INTEREST ON SEED MONEY LOAN. 3.2 IN APPEAL THE LD.CIT(A) FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003-04 VIDE ORDER DAT ED 15-12-2008 DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. AGGRIEV ED WITH SUCH ORDER OF THE CIT(A) THE REVENUE IS IN APPEAL BEFORE US. 3 4. AFTER HEARING BOTH THE SIDES WE FIND THE ISSUE S TANDS DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE TRIBU NAL IN ASSESSEES OWN CASE FOR A.YRS. 1999-2000 2001-02 2003-04 AND 200 4-05. SINCE THE LD.CIT(A) WHILE DELETING THE ADDITION HAS FOLLOWED THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE AND SINCE NOTHING C ONTRARY WAS BROUGHT TO OUR NOTICE AGAINST THE ORDER OF THE TRIBUNAL THERE FORE WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A) WHO HAS DELETED THE ADDI TION ON THE BASIS OF THE CONSISTENT DECISION OF THE TRIBUNAL IN ASSESSEES O WN CASE. ACCORDINGLY THE ORDER OF THE LD.CIT(A) IS UPHELD AND THE GROUND S RAISED BY THE REVENUE ARE DISMISSED. 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E. ON 22 ND DAY OF OCTOBER 2013. SD/- SD/- (SHAILENDRA KUMAR YADAV) (R.K. PA NDA) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE DATED : 22 ND OCTOBER 2013 SATISH COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE 2. THE DEPARTMENT 3. THE CIT(A)-III PUNE 4. THE CIT-III PUNE 5. D.R. B BENCH PUNE 6. GUARD FILE BY ORDER // TRUE COPY // SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE 4