M/S KAMAKHYA OIL CO.,NEW DELHI vs. ITO, NEW DELHI

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ITA 2226/DEL/2016Status: DisposedITAT Delhi28 September 2016AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that a similar issue for the preceding assessment year was restored to the AO. Following that precedent, the Tribunal set aside the impugned order and restored the matter to the AO for fresh adjudication.

What were the facts?

The assessee claimed deduction under Section 80IB for interest earned on FDRs, loans from another company, and loans to employees. The AO denied this deduction, and the CIT(A) upheld the denial.

What were the issues?

Whether interest income earned by the assessee is eligible for deduction under Section 80IB. The eligibility of interest income from various sources for deduction under Section 80IB.

Which sections of the Income-tax Act were involved?

Section 80IB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI

Before: SHRI R.S. SYAL

For Appellant: Shri R.S. Singhvi & Shri S. Goel, CAs
For Respondent: Shri Rajesh Kumar, Sr. DR
Hearing: 27.09.2016Pronounced: 28.09.2016

ORDER This appeal filed by the assessee is directed against the order passed by the CIT(A) on 21.3.2016 in relation to the assessment year 2011-12.

2.

No other issue except the denial of deduction u/s 80IB in respect of interest earned amounting to Rs.22,38,562/- was pressed by the ld. AR. Accordingly, the other grounds including challenge to the initiation of re- assessment, are hereby dismissed.

3.

The facts regarding the denial of deduction u/s 80IB are that the assessee earned interest on FDR under lien with Punjab National Bank amounting to Rs.6,15,334/-; interest on loan from M/s Shree Oil company amounting to Rs.16,16,233/-; and interest on loans to employees at Rs.6,995/-, totaling to Rs.22,38,562/-. The assessee claimed deduction u/s 80IB, inter alia, in respect of such total interest, which was denied by the AO. The ld.CIT(A) upheld the action of the AO.

4.

After considering the rival submissions and perusing the relevant material on record, it is observed that similar issue was involved in the appeal of the Revenue for the immediately preceding assessment year and the Tribunal vide its order dated 13.6.2014 in has finally restored the matter to the AO by giving directions contained in para 6 of its order. Since the facts and circumstances of the instant year are, admittedly, mutatis mutandis similar to the preceding year, respectfully following the view taken by the tribunal in the immediately preceding year, I set aside the impugned order and restore the matter to the file of the AO for deciding this issue in conformity with the view taken by the Tribunal in its order for the preceding year. 2

5.

In the result, the appeal is allowed for statistical purposes.

The order pronounced in the open court on 28.09.2016.

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