ACIT, C-4(1), CHANDIGARH vs. M/S PUNJAB STATE CO-OP SUPPLY & MARKETING FEDERATION LTD., CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘B’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA No.1509/Chd/2017 (Assessment Year : 2014-15) The A.C.I.T., Vs. M/s Punjab State Co-op. Supply Circle 4(1), & Marketing Federation Ltd., Chandigarh. Plot No.4, Sector 35-B, Chandigarh. PAN: AAAAT3454G (Appellant) (Respondent)

Appellant by : Shri Ashish Abrol, CIT DR Respondent by : Shri Aman Parti, Adv. Date of hearing : 26.02.2018 Date of Pronouncement : 26.02.2018

ORDER Per Sanjay Garg, Judicial Member :

This appeal has been preferred by the Revenue against

the order of Ld. Commissioner of Income Tax (Appeals)-2,

Chandigarh (hereinafter referred to as ‘CIT(Appeals)’) dated

24.8.2017 relating to assessment year 2014-15.

“i) Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.22,57,209/- on account of advertisement expenses claimed as such when there was no business exigency for incurring such expenditure?

issue raised in ground No.1 is identical to that raised in

ground No.2 in ITA Nos.1248/Chd/2016 for assessment

year 2012-13 and the decision rendered therein will apply

to this ground also mutatis mutandis. The Ld.CIT(Appeals)

while allowing this issue has followed the decision of the

Tribunal for earlier assessment years. In view of this, we

do not find any infirmity in the order of the CIT(Appeals).

The ground No.1 raised by the Revenue is dismissed.

under:

ii) Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.62,86,60,505/- on account of non-charging of interest on amount receivable from Punjab Govt. In the context of interest paid on loans raised by the assessee to run the business? iii) Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition of Rs.5,65,91,15,119/- on account of non-charging of interest on amount receivable from FCI in the context of interest paid on loans raised by the assessee to run the business? iv) Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the additions made on account of diversion of funds to the Punjab Govt. and FCI without charging interest and without business exigencies whereas the assessee is raising interest bearing loans for its business use?”

issues raised in ground Nos.2, 3 & 4 were identical to that

raised in ground No.4 in ITA Nos.1248/Chd/2016 for

assessment year 2012-13 and the decision rendered therein

will apply to these grounds also with equal force. The

Tribunal has accepted the contention of the assessee that

such recoveries were on account of trading activities which

cannot be equated with interest free advances.

In view of this, we do not find any infirmity in the

order of the CIT(Appeals) in allowing the above issues in

favour of the assessee.

dismissed.

Order pronounced in the Open Court on ……………

Sd/- Sd/- (B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 26 February, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR Assistant Registrar, ITAT, Chandigarh