Shri Shyamsunder Mohanlal Tayal, Sendhwa v. The ITO, Khargone

ITA 481/IND/2009 | 2006-2007
Pronouncement Date: 25-05-2010 | Result: Partly Allowed

Appeal Details

RSA Number 48122714 RSA 2009
Assessee PAN AAQPT4073N
Bench Indore
Appeal Number ITA 481/IND/2009
Duration Of Justice 7 month(s) 13 day(s)
Appellant Shri Shyamsunder Mohanlal Tayal, Sendhwa
Respondent The ITO, Khargone
Appeal Type Income Tax Appeal
Pronouncement Date 25-05-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 25-05-2010
Assessment Year 2006-2007
Appeal Filed On 12-10-2009
Judgment Text
PAGE 1 OF 3 - I.T.A.NO. 481/IND/2009 SHYAMSUMNDER MOHANLAL TAYAL SENDHWA IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER PAN NO. : AAQPT4073N I.T.A.NO. 481/IND/2009 A.Y. : 2006-07 SHRI SHYAMSUNDER MOHANLAL TAYAL INCOME-TAX OFFICER KHARGONE PROP. M/S. KALKA FIBERS VS 1 JAWAHARGANJ SENDHWA APPELLANT RESPONDENT APPELLANT BY : SHRI PIYUSH MANDOVRA ADV. RESPONDENT BY : SMT.APARNA KARAN SR. DR DATE OF HEARING : 24.5.2010 O R D E R PER V.K. GUPTA A.M. THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF ORD ER OF THE LD. CIT(A)-II INDORE DATED 27.7.2009 FOR THE ASSESSM ENT YEAR 2006-07. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. GROUND NOS. 1(B) AND 1(C) RELATING TO CONFIRMATION OF DISALLOWANCE OUT OF TELEPHONE EXPENSES AND PHYSICAL EXPENSES WERE NOT PRESSED HENCE DISMISSED AS NOT PRESSED. PAGE 2 OF 3 - I.T.A.NO. 481/IND/2009 SHYAMSUMNDER MOHANLAL TAYAL SENDHWA 4. IN GROUND NO.1(A) THE ISSUE IS REGARDING COMPUTATI ON OF QUANTUM OF DEDUCTION ALLOWABLE U/S 80-IB AFTER TAKI NG INTO CONSIDERATION THE INTEREST INCOME EARNED BY THE ASSESSEE. SUCH IN TEREST INCOME COMPRISES OF BANK INTEREST TO THE TUNE OF RS. 1 30 910/- AND INTEREST FROM CUSTOMERS ON DELAYED PAYMENTS TO THE TUNE OF RS. 7 288/-. THE LEARNED COUNSEL SUBMITTED THAT IN THE CONNECTED APPEALS OF THE ASSESSEE GROUP THE TRIBUNAL IN I.T.A.NOS. 415/IND/2008 AND 416/IND/200 8 ORDER DATED 16.4.2010 HAD RESTORED THE MATTER TO THE FILE OF AO FOR EXCLUDING NET INTEREST ONLY PROVIDED THE ASSESSEE PROVED THE NEXU S BETWEEN THE INTEREST EARNED AND INTEREST PAID. THE TRIBUNAL HAD ALSO HEL D INTEREST FROM DEBTORS ON DELAYED PAYMENTS WAS TO BE TREATED AS BUSINESS I NCOME AND HENCE ELIGIBLE FOR DEDUCTION U/S 80IA. THE LEARNED COUNSE L FURTHER SUBMITTED THAT IN THE CASE OF SIDDHARTH TUBES LIMITED VS. CIT IN I.T.A.NO. 71/IND/2008 ORDER DATED 31.7.2008 HAD ALSO HELD SO. THE SR. DR COULD NOT CONTROVERT THIS CLAIM OF THE ASSESSEE. HOWEVER SHE PREFERRED TO RELY ON THE ORDER OF LD. CIT(A). 5. WE FIND THAT THIS IS A RECURRING ISSUE AND THE TRIB UNAL HAS ALLOWED NETTING OF INTEREST PROVIDED THE ASSESSEE P ROVES THE NEXUS BETWEEN THE INTEREST RECEIVED AND INTEREST PAID AND IT HAS ALSO BEEN HELD THAT INTEREST FROM DEBTORS ON DELAYED PAYMENT HAS T O BE CONSIDERED AS ELIGIBLE FOR COMPUTING DEDUCTION U/S 80IA/80IB. HEN CE FOR VERIFICATION PAGE 3 OF 3 - I.T.A.NO. 481/IND/2009 SHYAMSUMNDER MOHANLAL TAYAL SENDHWA OF RELEVANT FACTS RELATING TO THESE ASPECTS WE RES TORE THE MATTER TO THE FILE OF AO WHO SHALL DECIDE THESE ISSUES IN TERMS OF T HE DIRECTIONS GIVEN BY THE TRIBUNAL IN I.T.A.NOS. 415 AND 416/IND/2008. AC CORDINGLY GROUND NO. 1(A) STANDS RESTORED TO THE FILE OF AO. 6. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE STA NDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 25 TH MAY 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED :25 TH MAY 2010. CPU* 245