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Acit, Panipat vs M/S K.T.M India, Panipat on 14 September, 2018 cites

M/S Liberty India vs Commr.Of Income Tax,Karnal on 31 August, 2009

13. Since we have already allowed the disallowance of pro rata interest of Rs. 1,14,777/-, therefore, penalty u/s 271(1)(c) on such disallowance is directed to be deleted. In so far as the levy of penalty of Rs. 12,51,129/- on amount of disallowance u/s 80IB of Rs. 37,16,961/-for deduction u/s 80IB on Duty Drawback/DEPB, the relevant facts and background has already been discussed above. The assessee's claim of deduction u/s 80IB on Duty Drawback/DEPB at the time of filing of return was then supported by various judgments of the Tribunal which was also confirmed by the Hon'ble Jurisdictional High court as discussed in the earlier part of the order. Thus, at the time of filing of return of income there could not be any furnishing of inaccurate particulars of income, because till the time of passing of assessment order on 16.12.2009, there was a binding precedent of Hon'ble Jurisdictional High Court by way of judgment in the case of CIT vs. M/s. Mittal Overseas dated 13.5.2008. It was much later on that Hon'ble Jurisdictional High Court decided this issue against the assessee and in favour of the revenue. Under these circumstances it 9 cannot be held that the assessee's claim at the time of filing of return of income was either not correct or was not bonafide. The Ld. AO had relied upon the judgment of Liberty India vs. CIT (2009) 317 ITR 218 (SC) held that such a claim was not allowable even at the time of filing of return of income.
Supreme Court of India Cites 21 - Cited by 862 - S H Kapadia - Full Document

Commissioner Of Income-Tax vs Abhishek Corporation on 29 November, 2001

Now the said judgment of Hon'ble P & H High Court in CIT vs. Abhishek (supra) has been overruled by the Hon'ble Supreme Court in the case of CIT vs. Munjal Sales Corporation, wherein the Hon'ble Supreme Court held that if assessee has huge interest free funds including the profit earned by the assessee during the year which is sufficient to cover the advancement of loan, then no interest should be disallowed. The assessee has demonstrated that the huge amount of money was lying in the capital 3 of the partners and the profit earned during the relevant assessment year itself was approximately Rs.1.19 crores. Therefore, such an availability of funds interest free is sufficient to cover up a small interest free loan of Rs. 16 lacs given to sister concern. Accordingly, the disallowance of Rs. 1,14,777/- is deleted. In the result appeal of the assessee is allowed.
Supreme Court of India Cites 0 - Cited by 16 - Full Document

The Commissioner Of Income Tax-Iii vs M/S Jaswand Sons on 29 September, 2010

11.1 Hon'ble Court had answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon'ble Court after referring to the judgments of Hon'ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial precedent of Hon'ble Jurisdictional High Court, then Ld. CIT(A) has rectified his order and has allowed this issue in favour of the department.
Punjab-Haryana High Court Cites 3 - Cited by 1 - A K Goel - Full Document

Munjal Sales Corporation vs Commissioner Of Income Tax,Ludhiana & ... on 19 February, 2008

However, the AO has rejected the assessee's contention and after applying the judgment of Hon'ble Punjab & Haryana High Court in the case of CIT vs. M/s. Abhishek Industries Ltd. (2006) 286 ITR 1, he disallowed the proportionate interest @9% which worked out to Rs. 1,14,777/- Ld. CIT(A) held that the judgment of Hon'ble Supreme Court in the case of CIT vs. M/s. Munjal Sales Corporation (supra) is distinguishable on facts, because here in this case the capital of the Partners has already been applied for the business purpose and therefore, the money advance must have been out of interest bearing funds.
Supreme Court of India Cites 9 - Cited by 258 - Full Document

Commissioner Of Income-Tax vs Munjal Sales Corporation on 12 October, 2006

Now the said judgment of Hon'ble P & H High Court in CIT vs. Abhishek (supra) has been overruled by the Hon'ble Supreme Court in the case of CIT vs. Munjal Sales Corporation, wherein the Hon'ble Supreme Court held that if assessee has huge interest free funds including the profit earned by the assessee during the year which is sufficient to cover the advancement of loan, then no interest should be disallowed. The assessee has demonstrated that the huge amount of money was lying in the capital 3 of the partners and the profit earned during the relevant assessment year itself was approximately Rs.1.19 crores. Therefore, such an availability of funds interest free is sufficient to cover up a small interest free loan of Rs. 16 lacs given to sister concern. Accordingly, the disallowance of Rs. 1,14,777/- is deleted. In the result appeal of the assessee is allowed.
Punjab-Haryana High Court Cites 2 - Cited by 16 - R Bindal - Full Document

Commissioner Of Income Tax, Karnataka vs Sterling Foods, Mangalore on 15 April, 1999

11.1 Hon'ble Court had answered this issue against the assesee following other judgments of the same court in the case of CIT vs. Jaswand Sons (supra) wherein the Hon'ble Court after referring to the judgments of Hon'ble Supreme Court in the case of CIT vs. Sterling Foods (1999) 237 ITR 579 and Liberty India vs. CIT has decided the issue against the assessee. Since these decisions were not brought to the notice of the Ld. CIT (A) in the quantum proceedings, therefore the matter was decided in favour of the assessee. The AO in his application filed u/s 154 brought to the notice of Ld. CIT(A) that there was a binding judicial precedent of Hon'ble Jurisdictional High Court, then Ld. CIT(A) has rectified his order and has allowed this issue in favour of the department.
Supreme Court of India Cites 6 - Cited by 555 - Full Document

Commissioner Of Income-Tax ... vs M/S Baby Marine Exports, Kollam on 30 March, 2007

However, such a reasoning is not held to be tenable, because the Hon'ble High Court in its judgment and order dated 13th May, 2008 had considered various judgments of the High Court as well as the Supreme Court in the case of CIT vs. Baby Marine Exports, 290 ITR 323 (SC), wherein deduction u/s 80HHC on duty drawback/DEPB in case of supporting manufacturer was allowed. Thus, assessee's claim was duly supported by the Hon'ble Jurisdictional High Court judgment and even if later on such matter has been decided against in subsequent judgment, then it cannot be held that assessee was guilty of furnishing of inaccurate particulars of income. Therefore, such a levy of penalty of disallowance of deduction cannot be upheld and same is directed to be deleted.
Supreme Court of India Cites 11 - Cited by 97 - D Bhandari - Full Document
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