Income Tax Appellate Tribunal - Pune
Deputy Commissioner Of Income-Tax,, vs M/S. Western Maharashtra Development ... on 14 March, 2018
आयकर अपील
य अ धकरण "बी" यायपीठ पण
ु े म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, PUNE
ी अ नल चतव
ु द
, लेखा सद!य, एवं ी $वकास अव!थी, या यक सद!य के सम&
BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM
आयकर अपील सं. / ITA No.1161/PUN/2016
नधा(रण वष( / Assessment Year : 2007-08
The Deputy Commissioner of Income Tax,
Circle-12,
Pune.
.......अपीलाथ / Appellant
बनाम / V/s.
M/s. Western Maharashtra Development
Corporation Ltd.
2nd Floor, Kubera Chambers,
Dr. Rajendra Prasad Road,
Shivajinagar,
Pune -411 005.
PAN : AAACW1864B
......
यथ / Respondent
Revenue by : Dr.Vivek Aggarwal.
Assessee by : None
सन
ु वाई क तार ख / Date of Hearing : 13.03.2018
घोषणा क तार ख / Date of Pronouncement : 14.03.2018
आदे श / ORDER
PER VIKAS AWASTHY, JM
This appeal by Revenue is directed against the order of Commissioner of Income Tax (Appeals), Pune-5 dated 04.02.2016 for the assessment year 2007-08.
2ITA No. 1161/PUN/2016
A.Y. 2007-08
2. The solitary ground raised by the Revenue in appeal reads as under:
"1. On the facts and in the circumstances of the case, the learned CIT(A) erred in deleting the addition of Rs.2,26,64,906/-, made by the Assessing Officer, on account of accrued interest on seed money loans, based on the fact that since all items of accounts were maintained on mercantile system of accounting on accrual basis, there was no basis for accounting on interest on seed money loans on cash basis, since Section 145(1) of the I.T. Act clearly provides that income should be computed either on cash or on mercantile basis as per amendment w.e.f. A.Y. 1997-98.
3. Dr. Vivek Aggarwal representing the Department vehemently supporting the assessment order submitted that the assessee is following mercantile system of accounting. However, accrued interest on Seed Money Loan is being accounted by the assessee on cash basis. The assessee cannot be allowed to maintain books on hybrid system of accounting. The Assessing Officer has made addition to the tune of Rs.223.92 Lacs in respect of accrued interest accounted on cash basis.
The Commissioner of Income Tax (Appeals) deleted the addition by following the order of Tribunal in assessee's own case in ITA No. 430/PN/2013 for assessment year 2008-09 decided on 22.10.2013.
4. Notice of appeal was sent to the assessee through RPAD on 02.02.2018 for today i.e. 13.03.2018. As is evident from acknowledgement card available on file, the notice has been duly served. Neither any official of the assessee company nor any Authorized representative of assessee has appeared to defend the case. We are proceeding to decide the appeal by Revenue with the assistance of ld. DR and material available on record. 3 ITA No. 1161/PUN/2016
A.Y. 2007-08
5. The assessee company is a State Government undertaking. The assessee company was incorporated for development of industries and promote industrialization of Western Maharashtra Region by undertaking, preparing, executing industrial scheme either solely or jointly with the Government of Maharashtra or any other corporation, company, association, institution and individual. We find that the issue raised by the Department in appeal is recurring in nature. The Tribunal in assessee's own case for assessment years 1999-00, 2001-02, 2003-04, 2004-05 and 2008-09 has deleted the additions made by the Assessing Officer for identical reasons.
6. The Commissioner of Income Tax (Appeals) has deleted the addition by following the order of Tribunal in assessee's own case for assessment year 2008-09. The ld. DR has fairly admitted that the issue raised by the Department in appeal is identical to the one which has already been adjudicated by the Tribunal in favour of assessee in assessment year 2008-09 and earlier assessment years. For the sake of completeness, the relevant extract of the findings of Tribunal in ITA No.430/PN/2013 (supra.) for assessment year 2008-09 is reproduced herein below:
"4. After hearing both the sides we find the issue stands decided in favour of the assessee by the decision of the Tribunal in assessee's own case for A.Yrs. 1999-2000, 2001-02, 2003-04 and 2004-05. Since the Ld.CIT(A) while deleting the addition has followed the order of the Tribunal in assessee's own case and since nothing contrary was brought to our notice against the order of the Tribunal, therefore, we find no infirmity in the order of the CIT(A) who has deleted the addition on the basis of the consistent decision of the Tribunal in assessee's own case. Accordingly, the order of the Ld.CIT(A) is upheld and the grounds raised by the Revenue are dismissed."
The ld. DR has not been able to distinguish the findings of Tribunal in assessee's own case. We do not find any infirmity in the order of 4 ITA No. 1161/PUN/2016 A.Y. 2007-08 Commissioner of Income Tax (Appeals) in accepting the claim of assessee by following the order of Tribunal. Accordingly, impugned order is upheld and the appeal of Revenue is dismissed.
7. In the result, appeal of Revenue is dismissed.
Order pronounced on Wednesday, the 14th day of March, 2018.
Sd/- Sd/-
(अ नल चतव
ु द
/ANIL CHATURVEDI) ($वकास अव!थी /VIKAS AWASTHY)
लेखा सद य / ACCOUNTANT MEMBER या यक सद य/JUDICIAL MEMBER
पुणे / Pune; !दनांक / Dated : 14th March, 2018.
SB आदे श क+ , त-ल$प अ.े$षत / Copy of the Order forwarded to :
1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The CIT(Appeals), Pune-5.
4. The Pr. CIT, Pune-4, Pune.
5. %वभागीय त न(ध, आयकर अपील य अ(धकरण, "बी" ब,च, पण ु े / DR, ITAT, "B" Bench, Pune.
6. गाड/ फ़ाइल / Guard File.
// स या%पत त // True Copy // आदे शानुसार / BY ORDER, नजी स(चव/Private Secretary आयकर अपील य अ(धकरण, पण ु े / ITAT, Pune.