M/S TORQUE PHARMACEUTICALS PVT. LTD.,CHANDIGARH vs. DCIT, CIRCLE 1(1), CHANDIGARH

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order dated 31.03.2017 of the Commissioner of Income Tax (Appeals)-1, Chandigarh [hereinafter referred to as CIT(A)].

ITA No. 970-Chd-2017- M/s Torque Pharmaceuticals (P) Ltd., Chandigarh 2

in progress u/s 36(1)(iii) of the Income Tax Act, 1961, without properly appreciating the facts, supporting evidence and submissions placed on record. The claim be allowed and the addition be deleted.

The sole grievance raised by the assessee in this appeal is relating 3.

to the part sustenance of the addition by the CIT(A) out of the total

addition made by the Assessing Officer u/s 36(1)(iii) of the Income Tax

Act, 1961 (in short 'the Act').’ The Assessing Officer made the

impugned addition of Rs. 91,01,423/- on the ground that the assessee

had used borrowed funds for the set up of a new unit. In the appeal

before the CIT(A), the assessee pleaded that the assessee was possessed

of sufficient own funds to meet the capital work in progress. That no

borrowed funds were used. That some of the funds were used out of the

current account which were deposited out of the sale proceeds of the

assessee and not out of the borrowed funds. That the Ld. CIT(A) partly

accepted the contention of the assessee, however, observed that the

assessee had also used the cash credit limit for capital investment. He,

accordingly directed the Assessing Officer to recalculate the own funds /

those invested from the current account out of the total investments

made and work out the proportionate disallowance accordingly.

ITA No. 970-Chd-2017- M/s Torque Pharmaceuticals (P) Ltd., Chandigarh 3

has come in appeal before us.

the Ld. CIT(A) mistakenly observed that the cash credit account was

used of investment. That no amount was used from the cash credit limit

for the capital work in progress. The Ld. Counsel, therefore, has

submitted that the matter be remanded to the Assessing Officer for

verification of the actual facts on this aspect.

CIT(A).

disputing the fact that no borrowed funds were used for making the

capital investment and that observation of the lower authorities that the

cash credit limit was used for capital investment was wrong and that

requires factual verification at the hands of the Assessing Officer,

hence, we restore this matter on this limited aspect to the file of the

Assessing Officer to verify and examine the above contention of the

assessee and decide this limited issue accordingly as per the provisions

of the law.

ITA No. 970-Chd-2017- M/s Torque Pharmaceuticals (P) Ltd., Chandigarh 4

In the result, the appeal of the assessee is treated as allowed for

statistical purposes.

Order pronounced in the Open Court on 21.10.2019.

Sd/- Sd/- (संजय गग� / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा�य� /Vice President �या�यकसद�य/ Judicial Member Dated : 21.10.2019 “आर.के.”

आदेशक���त�ल�पअ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकरआयु�त/ CIT 4. आयकरआयु�त (अपील)/ The CIT(A) 5. �वभागीय��त�न�ध, आयकरअपील�यआ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड�फाईल/ Guard File

आदेशानुसार/ By order, सहायकपंजीकार/ Assistant Registrar