M/s Sri Ram Chits (P) Ltd., Hyderabad v. ACIT, Range 3, Hyderabad

MA 178/HYD/2010 | misc
Pronouncement Date: 30-12-2010 | Result: Dismissed

Appeal Details

RSA Number 17822524 RSA 2010
Assessee PAN AAFCS4916D
Bench Hyderabad
Appeal Number MA 178/HYD/2010
Duration Of Justice 4 month(s) 17 day(s)
Appellant M/s Sri Ram Chits (P) Ltd., Hyderabad
Respondent ACIT, Range 3, Hyderabad
Appeal Type Miscellaneous Application
Pronouncement Date 30-12-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 30-12-2010
Assessment Year misc
Appeal Filed On 13-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER MA NO.174/HYD/2010 (ARISING OUT OF ITA NO.155/H/2007) .. ASST. YEAR 2002-03 MA NO.175/HYD/2010 (ARISING OUT OF ITA NO.154/H/2007) . . ASST. YEAR 2003-04 MA NO.176/HYD/2010 (ARISING OUT OF ITA NO.630/H/2008) . . ASST. YEAR 2004-05 MA NO.177/HYD/2010 (ARISING OUT OF ITA NO.927/H/2008) .. ASST. YEAR 2005-06 MA NO.178/HYD/2010 (ARISING OUT OF ITA NO.541/H/2009) .. ASST. YEAR 2006-07 M/S SRIRAM CHITS (P) LTD. HYDERABAD (PAN AAFCS 4916 D) VS THE DCIT CIRCLE 3 (1)/ADDL. CIT RANGE-3 HYDERABAD (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI K.C. DEVADAS RESPONDENT BY : SMT. VASUNDHARA SINHA DR O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: BY THESE APPLICATIONS UNDER S.254(2) OF THE INCOM E-TAX ACT THE APPLICANT-ASSESSEE SEEKS RECTIFICATION/RECALL O F THE CONSOLIDATED ORDER OF THIS TRIBUNAL DATED 30.4.2010 IN SO FAR AS IT RE LATES TO ASSESSEE'S APPEALS BEING ITA NOS.154-155/HYD/2007; 630/HYD/20 08; 927/HYD/008 AND 541/HYD/2009 FOR THE ASSESSMENT YEA RS 2002-03 TO MA NO.174 TO 178/H/2010 ITA NOS.154 155 630 927 & 541/H/07-09 M/S SRIRAM CHITS (P) LTD. HYDERABAD 2 2 2006-07 ON THE GROUND THAT CERTAIN MISTAKES APPAR ENT FROM RECORD HAVE CREPT INTO THE SAME. 2. LEARNED COUNSEL FOR THE ASSESSEE REITERATING THE AVERMENTS MADE IN THE PRESENT APPLICATIONS WHICH ARE IDENTIC ALLY WORDED INVITED OUR SPECIFIC ATTENTION TO PARAS 6 TO 8 OF THE ORDER OF THIS TRIBUNAL DATED 30.4.2010 WHEREIN THE ISSUE RELATING TO DISALLOWA NCE OF FINANCIAL CHARGES HAS BEEN DEALT WITH AND DECIDED BY THE TRIBUNAL. L EARNED COUNSEL FOR THE ASSESSEE RECAPITULATING THE SUBMISSIONS MADE DURING THE COURSE OF APPEAL HEARING STATED THAT WHILE THE BORROWALS FROM THE THREE COMPANIES WAS AT THE RATE OF 28% AND THE RATE OF INTEREST RECEIVED F ROM SISTER CONCERNS TO WHOM THE AMOUNTS WERE ADVANCED BY THE ASSESSEE WAS ONLY 12.77%; THE DIFFERENTIAL AMOUNT OF INTEREST WAS DISALLOWED BY T HE ASSESSING OFFICER AND THE SAID DISALLOWANCE WAS CONFIRMED BY THE CIT(A). IT WAS SUBMITTED THAT SINCE THE HON'BLE TRIBUNAL FELT THAT BOOKS OF ACCOU NT OF THE SISTER COMPANY AND THE LEDGER ACCOUNT OF THE COMPANIES WERE NOT MA DE AVAILABLE AND THE UTILIZATION OF FUNDS BY THE SISTER CONCERNS FROM TH EIR BOOKS OF ACCOUNT WERE TO BE SEEN NOTWITHSTANDING THE FACT THAT A CERTIFIC ATE FROM THE CHARTERED ACCOUNTANT FILED BY THE ASSESSEE TO SHOW THAT ALL T HE FUNDS WERE UTILISED FOR BUSINESS PURPOSES BY THE SISTER CONCERNS A PLE A WAS RAISED BY THE ASSESSEE THAT THE ISSUE BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER AND THAT THE ASSESSEE WOULD PRODUCE ALL THE RELEVANT EV IDENCE ABOUT THE CASH FLOW AND ALSO THE UTILIZATION OF FUNDS TO THE SATIS FACTION OF THE ASSESSING OFFICER. IT IS SUBMITTED BY THE LEARNED COUNSEL F OR THE ASSESSEE THAT THERE IS NO DISPUTE THAT THE AMOUNTS RELATED TO BORROWED FUNS AND THE DEPOSITS BY THESE COMPANIES WERE NEVER ADJUSTED AGAINST THE FUTURE INSTALMENTS PAYABLE BY THE COMPANIES AND THE AMOUNTS WERE ADVAN CED FOR BUSINESS PURPOSES AND HAD NO RELATION WHATSOEVER TO THE FUTU RE INSTALMENTS PAYABLE BY THE RESPECTIVE COMPANIES. HE INVITED O UR SPECIFIC ATTENTION TO MA NO.174 TO 178/H/2010 ITA NOS.154 155 630 927 & 541/H/07-09 M/S SRIRAM CHITS (P) LTD. HYDERABAD 3 3 THE CONCLUDING SENTENCE OF PARAGRAPH 8 OF THE ORDER DATED 30.4.2010 ON PAGE 7 THEREOF AND SUBMITTED THAT THOSE OBSERVATIO NS OF THE TRIBUNAL ARE LIKELY TO CREATE CONFUSION IN THE MIND OF THE ASSES SING OFFICER AND HE MAY ATTEMPT TO REOPEN THE SETTLED ISSUE WITH REGARD TO THE AMOUNTS ALREADY ALLOWED AND CONSEQUENTLY THE ASSESSING OFFICER INS TEAD OF CONFINING HIMSELF TO THE AMOUNT THAT IS SUBJECT MATTER OF ASS ESSEE'S APPEAL BEFORE THE TRIBUNAL HE MAY TRAVERSE BEYOND AND TRY TO EXP AND THE SCOPE OF VERIFICATION. IT IS THEREFORE SUBMITTED THAT THE DIRECTIONS AND OBSERVATIONS OF THE TRIBUNAL REQUIRE MODIFICATION/RECTIFICATION. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE ON T HE OTHER HAND SUBMITTED THAT THERE IS NO MISTAKE APPARENT FROM RE CORD IN THE ORDER OF THE TRIBUNAL DATED 30.4.2010 AND THE PRESENT APPLI CATIONS BEING DEVOID OF MERIT ARE LIABLE TO BE REJECTED. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE ORDER OF THIS TRIBUNAL DATED 30.4.2010 IN THE LIGHT OF THE MATERIAL AVAILABLE ON RECORD AND THE AVERMENTS OF THE ASSESSEE IN THE PRESENT APPLICATIONS. WE FIND THAT THERE IS NO SPECIFIC MISTAKE APPARENT FROM RECORD IN THE ORDER OF THE TRIBUNAL. THE DETAILED SUBMISSIONS MADE BY THE ASSESSEE IN THE PRESENT APPLICATIONS AND THE CONTENTIONS OF THE LEA RNED COUNSEL FOR THE ASSESSEE IN SUPPORT THEREOF CLEARLY INDICATE THAT THE PRESENT APPLICATIONS ARE BASED ON MERE APPREHENSIONS AND ASSUMPTIONS THA T THE ASSESSING OFFICER MAY TRAVEL BEYOND THE SCOPE OF THE DIRECTIO N OF THE TRIBUNAL AND REOPEN EVEN THE SETTLED ISSUES AND NO SPECIFIC MI STAKE APPARENT FROM RECORD HAS BEEN BROUGHT OUT BY THE APPLICANT IN THE ORDER OF THE TRIBUNAL DATED 30.4.2010. SINCE THE PRESENT APPLICATIONS O F THE ASSESSEE ARE BASED ON MERE APPREHENSIONS AND ASSUMPTIONS WE FIND NO M ERIT IN THE PRESENT APPLICATIONS OF THE ASSESSEE WHICH ARE ACCORDINGL Y REJECTED. MA NO.174 TO 178/H/2010 ITA NOS.154 155 630 927 & 541/H/07-09 M/S SRIRAM CHITS (P) LTD. HYDERABAD 4 4 5. IN THE RESULT ALL THE FIVE MISCELLANEOUS APPLI CATIONS OF THE ASSESSEE ARE REJECTED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.2.20 10 SD/- SD/- (G.C.GUPTA) (CHANDRA POOJARI) VICE PRESIDENT ACCOUNTANT MEMBER DATED 30TH DECEMBER 2010 COPY FORWARDED TO: 1. M/S SRIRAM CHITS (P) LTD. 3-6-478/3 RD FLOOR ANAND ESTATE OPP. INDIAN BANK LIBERTY ROAD HIMAYATNAGAR HYDER ABAD 2. THE DCIT CIRCLE 3(1) HYDERABAD THE ACIT RANGE 3 HYDERABAD 3. CIT(A) IV HYDERABAD 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. B.V.S.