Income Tax Appellate Tribunal - Chennai
Acit, Villupuram Circle, Villupuram vs Kallakurichi Co.Op.Sugar Mills Ltd, ... on 30 November, 2017
आयकर अपील य अ धकरण, 'सी' यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH, CHENNAI ी एन.आर.एस. गणेशन, या यक सद य एवं ी संजय अरोड़ा, लेखा सद य केसम% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.2185 & 2186/Mds/2017 नधा(रण वष( / Assessment Years : 2014-15 & 2013-14 The Assistant Commissioner of M/s Kallakurichi Co-op. Sugar Mills Income Tax, v. Ltd., Unit-II, Villupuram Circle, Kachirapalayam, Kallakurichi, Villupuram - 605 602. Villupuram - 606 207.
PAN : AAAAK 0655 Q (अपीलाथ,/Appellant) (-.यथ,/Respondent) आयकर अपील सं./ITA Nos.2184 & 2187/Mds/2017 नधा(रण वष( / Assessment Years : 2013-14 & 2014-15 The Assistant Commissioner of M/s Kallakurichi Co-op. Sugar Mills Income Tax, v. Ltd., Unit-1, Villupuram Circle, Moongilthurai pattu, Villupuram - 605 602. Villupuram - 605 702.
PAN : AAAAT 3677 M (अपीलाथ,/Appellant) (-.यथ,/Respondent) अपीलाथ, क/ ओर से/Appellant by : Shri N. Madhavan, Addl.CIT
-.यथ, क/ ओर से/Respondents by : Shri S. Venugopalan, CA Shri B. Gowthaman, CA सन ु वाई क/ तार ख/Date of Hearing : 28.11.2017 घोषणा क/ तार ख/Date of Pronouncement : 30.11.2017 2 I.T.A. Nos.2184 to 2187/Mds/17 आदे श /O R D E R PER BENCH:
All the four appeals of the Revenue in respect of two independent assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals), Puducherry, dated 30.06.2017 for the assessment years 2013-14 and 2014-15. Since common issue arises for consideration in all these appeals, we heard these appeals together and disposing of the same by this common order.
2. The only issue arises for consideration in all these appeals is disallowance made by the Assessing Officer under Section 43B of the Income-tax Act, 1961 (in short 'the Act') in respect of interest payment.
3. We heard Shri N. Madhavan, the Ld. Departmental Representative and Shri S. Venugopalan and Shri B. Gowthaman, the Ld. representatives of the assessees. The assessee-co- operative societies were allotted working capital by Government of Tamil Nadu. In fact, National Co-operative Development Corporation has sanctioned the loan under Corporation Sponsored Scheme to Government of Tamil Nadu. The payment of interest 3 I.T.A. Nos.2184 to 2187/Mds/17 was disallowed by the Assessing Officer under Section 43B of the Act. The Assessing Officer was under the impression that the loan was sanctioned by a financial institution, namely, National Co-op. Development Corporation, New Delhi. Referring to a Government Order in RcNo.16890/Cane-1/2001 dated 15.03.2002, the Ld. representatives of the assessees brought to the notice of the Bench that the loan was sanctioned to Government of Tamil Nadu which is to be utilised as working capital by co-operative sugar mills in the State. Therefore, according to the Ld. representatives, the repayment has to be made to Government of Tamil Nadu by the assessees and not to National Co-op. Development Corporation.
4. An identical issue came before this Tribunal in the assessees' own case for assessment years 2008-09, 2009-10, 2010-11 and 2012-13. This Tribunal by placing its reliance on another order of this Tribunal in DCIT v. The Kallakurichi Co-op. Sugar Mills Ltd., Unit-II in I.T.A. No.1079/Mds/2012 dated 14.12.2012, found that the repayment of loan by the assessee to Government of Tamil Nadu would not fall under Section 43B of the Act. Since the facts are identical to that of assessment years 2008- 09, 2009-10, 2010-11 and 2012-13 in the assessees' own case, this 4 I.T.A. Nos.2184 to 2187/Mds/17 Tribunal is of the considered opinion that the decision of the co- ordinate Bench of this Tribunal dated 28.09.2016 is squarely applicable to the facts of the case. In view of the above, the CIT(Appeals) has rightly followed the order of this Tribunal. Hence, this Tribunal does not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
5. In the result, all the four appeals filed by the Revenue stand dismissed.
Order pronounced on 30th November, 2017 at Chennai.
sd/- sd/-
(संजय अरोड़ा) (एन.आर.एस. गणेशन)
(Sanjay Arora) (N.R.S. Ganesan)
लेखा सद य/Accountant Member या यक सद य/Judicial Member
चे नई/Chennai,
th
5दनांक/Dated, the 30 November, 2017.
Kri.
आदे श क/ - त6ल7प अ8े7षत/Copy to:
1. अपीलाथ,/Appellant
2. -.यथ,/Respondent
3. आयकर आयु9त (अपील)/CIT(A), Puducherry
4. Principal CIT, Puducherry
5. 7वभागीय - त न ध/DR
6. गाड( फाईल/GF.