ACIT, New Delhi v. M/s. The Rajputana Stores Pvt. Ltd., New Delhi

ITA 5383/DEL/2011 | 2005-2006
Pronouncement Date: 28-10-2013 | Result: Allowed

Appeal Details

RSA Number 538320114 RSA 2011
Assessee PAN AABCT7041C
Bench Delhi
Appeal Number ITA 5383/DEL/2011
Duration Of Justice 1 year(s) 10 month(s) 27 day(s)
Appellant ACIT, New Delhi
Respondent M/s. The Rajputana Stores Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-10-2013
Appeal Filed By Department
Order Result Allowed
Bench Allotted H
Tribunal Order Date 28-10-2013
Date Of Final Hearing 24-09-2013
Next Hearing Date 24-09-2013
Assessment Year 2005-2006
Appeal Filed On 01-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: H NEW DELHI BEFORE SMT DIVA SINGH JUDICIAL MEMBER AND SHRI J.S.REDDY ACCOUNTANT MEMBER I.T.A .NO.-5383/DEL/2011 (ASSESSMENT YEAR-2005-06) ACIT VS M/S JAIPURIA BEVERAGES & FOOD INDUSTRIE S PVT. CIRCLE-4(1) ROOM NO-407 LTD. (FORMERLY KNOWN AS THE RAJPUTANA STORES C.R.BUILDING I.P.ESTATE PVT. LTD.) 702 ANSAL B HAWAN NEW DELHI. 16-KASTURBA GANDHI MARG NEW DELHI-01 . PAN-AABCT7041C (APPELLANT) (RESPONDENT) APPELLANT BY: SMT. RENUKA JAIN GUPTA SR. DR RESPONDENT BY: SH.K.SAMPATH ADV. ORDER PER DIVA SINGH JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-VII NEW DELHI DATED 18.10.2011 PERTAINING TO 2005-06 A SSESSMENT YEAR ON THE FOLLOWING GROUNDS:- 1. THE ORDER OF THE LEARNED CIT(APPEALS) IS ERRONE OUS & CONTRARY TO FACTS & LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LEARNED CIT(A) HAS ERRED IN RESTRICTING DI SALLOWANCE OF INTEREST PAID ATTRIBUTABLE TO INVESTMENT MADE IN ASSOCIATE COMPANY BY RS.12 76 610/- 2.1. LD. CIT(A) ERRED IN HOLDING THAT PROPORTIONATE DISALLOWANCE SHOULD BE MADE UNDER SECTION 14A DESPI TE THE FACT THAT THE AO HAD MADE THE DISALLOWANCE ON THE G ROUND THAT INTEREST ATTRIBUTABLE TO INVESTMENT INS HARES FOR GAINING CONTROL IS NOT ALLOWABLE U/S 57(III) RELYING ON THE DECISION OF BOMBAY HIGH COURT IN THE CASE OF AMRITABEN R SHAH 2 38 ITR 777. 3. THE APPELLANT CRAVES LEAVE TO ADD TO ALTER OR AME ND ANY GROUNDS OF THE APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. ITA NO. 5383/DE L/2011 2 2. LD. SR. DR QUA THE DEPARTMENTAL GROUND RELYING UPON THE ASSESSMENT ORDER SUBMITTED THAT THE CIT(A) HAS ERRED IN GRANTING REL IEF TO THE ASSESSEE IN PARA 3.1 RELYING UPON THE POSITION FOR 2004-05 ASSESSMENT YE AR RESTRICTED THE DISALLOWANCE TO RS.13 50 000/- AS OPPOSED TO RS.26 26 610/- MADE BY THE AO. IT WAS HER ARGUMENT THAT THE ISSUE IS FACT SPECIFIC AND SIMPLY WITHOUT MAKING ANY EFFORT TO CO- RELATE THE SIMILARITY ON FACTS WITH THE EARLIER YEA R THE CIT(A) IS NOT JUSTIFIED IN GRANTING RELIEF SO GRANTED. 3. LD. AR ADDRESSING THE PAST POSITION ON THE ISSUE WHICH WAS A SUBJECT MATTER OF APPEAL FILED BY THE DEPARTMENT FILED A COPY OF T HE ORDER IN ASSESSEES CASE IN ITA NO.-5583/DEL/2010 WHEREIN THE CO-ORDINATE BENCH VID E ITS ORDER DATED 06.07.2012 IN 2004-05 ASSESSMENT YEAR WHICH HAS BEEN FOLLOWED BY THE CIT(A) RESTORED THE ISSUE TO THE AO WITH THE DIRECTION TO DECIDE THE SA ME IN TERMS OF THE FINDINGS OF THE HONBLE HIGH COURT IN THE CASE OF MAXOPP INVESTMENT LTD. VS CIT (2011) 203 TAXMANN 364 (DELHI). 4. IN THE LIGHT OF THE ARGUMENTS BY THE PARTIES BEF ORE THE BENCH WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND RES TORE THE ISSUE BACK THE FILE TO THE AO WITH THE DIRECTION TO DECIDE THE SAME IN ACCORDA NCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. THE AO SHALL DECIDE THE ISSUE KEEPING IN LINE THE DIRECTIONS OF THE HONBLE HIGH COURT IN PARA 42 IN THE CASE OF MAXOPP INVESTMENT LTD. (CITED SUPRA). IN THE RESU LT THE DEPARTMENTAL GROUND IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28 TH OF OCTOBER 2013. SD/- SD/- (J.S.REDDY) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 28/10/2013 *AMIT KUMAR* ITA NO. 5383/DE L/2011 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI