Income Tax Appellate Tribunal - Chennai
Sahana Jewellery Exports Private ... vs Dcit Corporate Circle 1 , Coimbatore on 2 February, 2018
आयकर अपील
य अ धकरण, 'बी' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH, CHENNAI
ी एन.आर.एस. गणेशन, या यक सद य एवं
ी एस जयरामन, लेखा सद य केसम%
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER
AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER
रोक या चका सं / S.P. No.39/Mds/2018
(in I.T.A. No.1814/Mds/2017)
नधा'रण वष' / Assessment Year : 2013-14
M/s Sahana Jewellery Exports The Deputy Commissioner of
Private Limited, v. Income Tax,
600, Raja Street, Corporate Circle - I,
Coimbatore - 641 001. Coimbatore.
PAN : AAECS 7045 N
(*ाथ'क/Petitioner) (*,यथ-/Respondent)
*ाथ'क क/ ओर से /Petitioner by : Shri L. Shibi, CA
*,यथ- क/ ओर से/Respondent by : Ms. S. Vijayaprabha, JCIT
सन
ु वाई क/ तार
ख/Date of Hearing : 02.02.2018
घोषणा क/ तार
ख/Date of Pronouncement : 02.02.2018
आदे श /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
The assessee has filed the present Stay Petition praying for stay of recovery of outstanding amount of ₹12,92,260/- for the assessment year 2013-14.
2. Shri L. Shipi, the Ld. representative for the assessee, submitted that the assessee deposited money with State Bank of 2 S.P. No.39/Mds/18 India for getting Letter of Credit to import gold. The interest accrued on such deposit was claimed as income from business. However, according to the Ld. representative, the Assessing Officer treated the same as income from other sources. According to the Ld. representative, since the deposit was made for the purpose of obtaining Letter of Credit in the course of business activity, the interest income has to be treated as income from business.
3. We heard Ms. S. Vijayaprabha, the Ld. Departmental Representative also. The case of the assessee right from the Assessing Officer is that the fixed deposit was made for the purpose of getting Letter of Credit from State Bank of India. When the assessee made deposit in order to get Letter of Credit for the purpose of importing gold, this Tribunal is of the considered opinion that the interest earned on such deposit will go to reduce the cost of the gold imported, therefore, nothing would be available for taxation in respect of such interest income. This view of the Tribunal is fortified by the judgment of Apex Court in CIT v. Karnal Co- operative Sugar Mills Ltd. (2000) 243 ITR 2. In view of the above, there is a prima facie case in favour of the assessee for grant of stay. Accordingly, the recovery of outstanding amount of ₹12,92,260/- is hereby stayed for a period of six months from today. 3 S.P. No.39/Mds/18 The appeal is preponed to 13.02.2018. Since the date of hearing was announced in the presence of both the parties, it may not be necessary for the Registry to issue a separate notice of hearing. In other words, a copy of this order shall be treated as notice of hearing for 13.02.2018.
4. With the above observation, the Stay Petition filed by the assessee stands allowed.
Order pronounced court in the open court on 2nd February, 2018 at Chennai.
sd/- sd/-
(एस जयरामन) (एन.आर.एस. गणेशन)
(S. Jayaraman) (N.R.S. Ganesan)
लेखा सद य/Accountant Member या यक सद य/Judicial Member
चे नई/Chennai,
nd
5दनांक/Dated, the 2 February, 2017.
Kri.
आदे श क/ * त6ल7प अ8े7षत/Copy to:
1. *ाथ'क/Petitioner
2. *,यथ-/Respondent
3. आयकर आयु9त (अपील)/CIT(A)
4. आयकर आयु9त/CIT
5. 7वभागीय * त न ध/DR
6. गाड' फाईल/GF.