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Dadranagar Haveli Sahakari Khand Udhyog Mandali Ltd. New Marketing Centre, Room No. 16 & 17, Dadra Nagar Haveli, Silvasa-396230 V/s. The Income-tax Officer, Ward-1, Vapi
October, 30th 2013
                     Before Shri G.C.Gupta, Vice President and
                          Shri T.R. Meena, Accountant Member
                                ITA No. 2499/Ahd/2011
                               Assessm ent Year :2008-09

  Dadranagar Haveli Sahakari Khand       V/s . The Income-tax Officer,
  Udhyog Mandali Ltd.                          Ward-1, Vapi
  New Marketing Centre, Room No. 16 &
  17, Dadra Nagar Haveli, Silvasa-396230
                             PAN No. AAAAK0901F
               (Appellant)               ..          (Respondent)

                                                  Shri A. J. Shah, A.R.
     By Appellant
     ×   /By Respondent                           Shri P. L. Kureel, Sr. D.R.
       /Date of Hearing
       /Date of Pronouncement                       18.10.2013


PER : Shri T.R.Meena, Accountant Member

         This appeal is filed by the assessee against the order of the CIT(A), Valsad,

order dated 30.06.2011 for A.Y. 2008-09. The effective grounds of appeal are as


         (I)   Addition of Interest from Bank:-

               (1)    On the facts and circumstances of the case and as per
                      law the learned Commissioner of Income-tax (Appeals)
                      erred in treating a sum of Rs.1,23,22,484/- as income of
                      the appellant when interest belonged to the Central
                      Government which was taken by it subsequently as part
                      of its share capital.
               (2)    The appellant submits that the learned Commissioner of
                      Income-tax (Appeals) failed to properly appreciate the
                      legal aspects in confirming the above addition.
I T A No . 2 49 9 /A h d/ 2 01 1 A . Y. 0 8- 09                                       Page 2

         (III)    Miscellaneous:-
                  (1)      The learned Commissioner of Income-tax (Appeals)
                           erred in no dealing with grounds for charge of interest
                           u/s. 234A, 234B, 234C & 234D of the Act.
2.       The A.O. observed that the assessee had earned interest amount of

Rs.1,23,22,484/- as interest on Government share capital. The said interest had

been credited to the interest on Government share capital under the head of

reserves and surplus in balance sheet. The assessee had investments with various

banks in the form of deposits. The A.O. gave reasonable opportunity of being heard

which was replied by the assessee. After following the CIT(A) order in A.Y. 02-03,

03-04, 04-05 and 07-08 and even in the past, in the case of the assessee, wherein

the CIT(A) had dismissed the appeal and upheld the order of the then Assessing

Officer upholding the addition of interest income to the total income of the assessee,

the A.O. had made addition of Rs.1,23,22,484/-.

3.       The assessee carried the matter before the CIT(A) who has dismissed the

appeal by observing as under:

         "4.1     I have carefully perused the facts of the case as well as the
         observation made by the AO in the assessment order.                     I have also
         perused the submission made by the AR of the appellant. The appeals for
         the Asstt. Years 02-03, 03-04, 04-05 and 07-08 were decided by me
         against        the      appellant        vide     Appellate   Order    in   Appeal
         No.CIT(A)/VLS/463,462,461 & 460 dated 24.08.2010. Since the matter is
         identical, following the earlier year order, this appeal is decided against
         the appellant by confirming the action of the A.O. Thus, this ground of
         appeal is dismissed."
4.       Now the assessee is before us.                  Ld. Counsel for the appellant submitted

written reply which is reproduced as under:
I T A No . 2 49 9 /A h d/ 2 01 1 A . Y. 0 8- 09                            Page 3

         "(2)     Identical issue in the case of the assessee was before the Hon'
         Tribunal Bench `B', Ahmadabad in ITA Nos. 3238 to 3241/Ahd/2010 for
         2002-03, 2003-04, 2004-05 and 2007-08 assessment years. Grounds for
         these years have been reproduced by the Hon' Tribunal disposing off the
         appeals fo the assessee by its consolidated order dated 31-07-2013 in ITA
         3238 to 3241/Ahd/2010. The finding of the Hon. Tribunal is in para 6
         which has been highlighted. The assessee's appeal has been allowed.
         Copy of order of Tribunal is enclosed."
At the outset, ld. Sr. D.R. vehemently relied upon the order of CIT(A).

5.       We have heard the rival contentions and perused the material on record.

After following the Co-ordinate `B' Bench, Ahmadabad in ITA Nos. 3238 to

3241/Ahd/2010 for 2002-03, 2003-04, 2004-05 and 2007-08 assessment years, we

allow the appeal of the assessee.

6.       In the result, the assessee's appeal is allowed.

 This Order pronounced in open Court on 18.10.2013

           Sd/-                                                      Sd/-
      (G.C.Gupta)                                              (T.R. Meena)
     Vice President                                         Accountant Member
                                             True Copy
     / Copy of Order Forwarded to:-
1.  / Appellant
2. × / Respondent
3.    / Concerned CIT
4.  -  / CIT (A)
5.  ,   ,  / DR, ITAT, Ahmedabad
6. [  / Guard file.
                                                                      By order/  ,

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