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
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "B" BENCH AHMADABAD
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 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
(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
(G.C.Gupta) (T.R. Meena)
Vice President Accountant Member
/ Copy of Order Forwarded to:-
1. / Appellant
2. × / Respondent
3. / Concerned CIT
4. - / CIT (A)
5. , , / DR, ITAT, Ahmedabad
6. [ / Guard file.
By order/ ,