DCIT, CC-II, Kolkata, Kolkata v. M/s. Forum Projects Pvt. Ltd., Kolkata

ITA 9/KOL/2011 | 2006-2007
Pronouncement Date: 22-09-2011

Appeal Details

RSA Number 923514 RSA 2011
Assessee PAN AADCS7575A
Bench Kolkata
Appeal Number ITA 9/KOL/2011
Duration Of Justice 8 month(s) 19 day(s)
Appellant DCIT, CC-II, Kolkata, Kolkata
Respondent M/s. Forum Projects Pvt. Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 22-09-2011
Appeal Filed By Department
Bench Allotted B
Tribunal Order Date 22-09-2011
Assessment Year 2006-2007
Appeal Filed On 03-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BEN CH B KOLKATA () BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . #$ SHRI C.D.RAO ACCOUNTANT MEMBER % % % % / ITA NO . 09/KOL/2011 &' ()/ ASSESSMENT YEAR : 2006-07 (+ / APPELLANT ) D.C.I.T. CENTRAL CIRCLE-II KOLKATA - & - - VERSUS - . (./+ / RESPONDENT ) M/S. FORUM PROJECTS PVT. LTD. KOLKATA (PAN: AADCS 7575A ) + 0 1 #/ FOR THE APPELLANT: SHRI S.K.ROY ./+ 0 1 #/ FOR THE RESPONDENT: SHRI RAJEEV KUMAR 2&3 0 '$ /DATE OF HEARING : 22.09.2011. 4( 0 '$ /DATE OF PRONOUNCEMENT : 22.09.2011. #5 / ORDER ( (( ( . .. .!' !'!' !'. .. . ) )) ) #$ PER SHRI C.D.RAO AM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 18.10.2010 OF THE CIT(A)-CENTRAL-III KOLKATA PERTAINING TO A.YR. 200 6-07. 2. IN THIS APPEAL THE REVENUE HAS TAKEN THE FOLL OWING GROUNDS :- 1. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.13 37 743/- MADE ON A/C OF DISALLOWANCE OUT OF INTEREST ON BORROWED FUND GIVEN AS INTEREST FREE LOAN WITHOUT EXAMINING THE EXACT SOURCE OF EACH INTEREST FREE ADVANCE MADE BY THE ASSESSEE AND WITHOUT CONSIDERING THAT THE ASSESSEE HAD NOT MAINTAINED ANY SEPARATE ACCOUNT AND THAT THE ASSESSEE FAILED TO AD DUCE ANY EVIDENCE IN 2 SUPPORT OF THE CLAIM THAT IT WAS OUT OF HIS OWN FUN D THAT HE HAD GIVEN AS INTEREST FREE LOAN. 2. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.10 00 000/- MADE ON A/C OF EXPENSES RELATED TO PROJECTS FOR WHICH NO INCOME WA S SHOWN DURING THE YEAR. 3. THAT THE DEPARTMENT CRAVES LEAVE TO ADD MODIFY OR ALTER ANY OF THE GROUND(S) OF APPEAL AND/OR ADDUCE ADDITIONAL EVIDEN CE AT THE TIME OF HEARING OF THE CASE. 3. AT THE TIME OF HEARING BEFORE US THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE AT THE OUTSET SUBMITTED THAT LD. CIT(A) HAS DELETED BOTH THE ADDITIONS FOLLOWING THE ITATS ORDERS IN THE IMMEDIATELY PRECEDING TWO YEAR S ON THE SAME ISSUE. THEREFORE HE REQUESTED TO UPHELD THE SAME. 4. ON THE OTHER HAND THE LD. DR APPEARING ON BEHALF OF THE REVENUE HAS RELIED ON THE ORDERS OF ASSESSING OFFICER. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREFUL PERUSAL OF MATERIALS AVAILABLE ON RECORD IT IS OBSERVED THAT LD. CIT(A) HAS DELET ED THE SAME BASED ON THE ITATS ORDER IN THE EARLIER YEARS AS CONTENDED BY THE LD. COUNSEL FOR ASSESSEE. THE RELEVANT PARAGRAPH OF LD. CIT(A) IS AS UNDER :- AS FAR AS GROUND NOS. 1 AND 2 ARE CONCERNED I HOL D THAT THE FACTS OF THE IMPUGNED ASSESSMENT YEAR ARE IDENTICAL TO THE FACTS OF THE CASE OF THE SAME ASSESSEE FOR THE A.YS.2004-05 & 2005-06. THE ISSUES WERE DECIDED IN FAVOUR OF THE APPELLANT BY MY LD.PREDECESSOR VIDE HIS ORDE R DATED 25.10.2007 FOR A.Y.2004-05 AND OTHER DATED 17.03.2008 FOR THE A.Y. 2005-06. HONBLE ITAT KOLKATA HAS ALSO UPHELD THE ORDER OF MY LD.PREDECES SOR FOR BOTH THESE YEARS (THE DATE OF THE ORDERS AND THE ITA NUMBERS ARE MEN TIONED IN THE SUBMISSION OF THE APPELLANT). RESPECTFULLY FOLLOWING THE ORDER S OF MY LD.PREDECESSOR AND THE HONLE ITAT THE ADDITIONS MADE BY THE DISALLOWA NCE OF INTEREST AMOUNTING TO RS.13 37 743/- AND DISALLOWANCE OUT OF OPERATING AND OTHER EXPENSES AMOUNTING TO RS.10 LAKHS IS HEREBY DELETED. 5.1. KEEPING IN VIEW OF THE FACT THAT NO CONTRA RY MATERIAL AGAINST THE OBSERVATIONS OF LD. CIT(A) ARE BROUGHT ON RECORD. WE FIND NO INFIRM ITY IN THE ORDERS OF LD. CIT(A) TO BE INTERFERED WITH. THEREFORE WE UPHELD THE ORDER O F LD. CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 3 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 22.09.2011. SD/- SD/- MAHAVIR SINGH JUDICIAL MEMBER . .. .!' !'!' !'. .. . #$ #$ #$ #$ C.D.RAO ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 22.09.2011. #5 0 .6 7#6(8- COPY OF THE ORDER FORWARDED TO: 1. M/S. FORUM PROJECTS PVT. LTD. 4/1 RED CROSS PLACE KOLKATA-700001.. 2 THE DCIT CENTRAL CIRCLE-II KOLKATA 3. THE CIT 4. THE CIT(A)-CENTRAL-III KOLKATA 5. DR KOLKATA BENCHES KOLKATA /6 ./ TRUE COPY #5&2/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES R.G.(.P.S.)