ACIT v. Ram Kishan Verma

Lalita Kumari, Anta District Baran vs. Commissioner of Income Tax (Appeals), NFAC, Delhi

In the result, appeal of the assessee is allowed

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

…he judgment of this Court in the case of Reliance Utilities and Power Ltd. (supra), it would have to be presumed that the investment made by the Assessee would be out of the interest-free funds available with the Assessee.” C.] ACIT v/s Ram KishanVerma (2012) 143 TTJ 1 (Jp) (text of the judgement annexed at paper book pg no. 46-57) “10.4 … There is no onus on the assessee to establish that interest-free advances are out of interest-bearing advances if non-interest bearing funds are more. Reliance is placed on the decision of the Hon’ble Bombay High Court in the case of CIT vs. Reliance Utilities & Power Ltd. (200…

Chem Colour (India) Limited, Kota vs. ACIT Circle -2, Kota

In the result, the appeal filed by the assessee is partly allowed

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC’’ JAIPUR Jh lanhi xkslkbZ] U;kf;d lnL; ds le{k BEFORE: Hon’ble SHRI SANDEEP GOSAIN, JUDICIAL MEMBER vk;dj vihy la-@ITA No. 166/JP/2021 fu/kZkj.k o"kZ@Assessment Year : 2015-16 cuke M/s. Chem Colour (India) Ltd. The ACIT G-209 (E), I.P.I.A Vs. Circle-2 Kota – 324 005 (Raj) Kota LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAACC9610 J vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Vijay Goyal, CA jktLo dh vksj ls@ Revenue by: Smt. Manisha Choudhary, JCIT lquokbZ dh rkjh[k@ Date of…

Allen Career Institute, Kota vs. JCIT, Jaipur

In the result, the Grounds No

…low themselves have admitted that the facts of this year are identical with those in A.Y. 2009-10 hence there is no reason why the Hon`ble ITAT order of A.Y. 2009-10 should not be applied in this case. 3.2 Also, in the case of ACIT v/s Ram Kishan Verma (2012) 143 TTJ 1 (Jp) (DPB - I 10-22), wherein the factual matrix is also the same. In fact, the cited case also of a coaching institute of Kota itself and there also the assessee used to receive the entire fees at the beginning of the year/session whereas it had to incur recurring expenditure on monthly basis. As a part of financial management/planning and to maxi…

Allen Career Institute, Jaipur vs. JCIT, Kota

In the result, the appeal of the assessee is partly allowed

…is no reason why the Hon`ble ITAT order of A.Y. 2009-10 should not be applied in this case. A charge showing financials is enclosed as Annexure 3 to revised w/s to ITAT dated 1st February 2021. X X X X 3.2 Also, in the case of ACIT v/s Ram Kishan Verma (2012) 143 TTJ 1 (Jp) (DPB - I 10-22), wherein the factual matrix is also the same. In fact, the cited case also of a coaching institute of Kota itself and there also the assessee used to receive the entire fees at the beginning of the year/session whereas it had to incur recurring expenditure on monthly basis. As a part of financial management/planning and to maxi…

Allen Career Institute, Jaipur vs. JCIT, Kota

In the result, the appeal of the assessee is partly allowed

…nce there is no reason why the Hon`ble ITAT order of A.Y. 2009-10 should not be applied in this case. A chart showing financials is enclosed as Annexure 3 to revised w/s to ITAT dated 1st February 2021 3.2 Also, in the case of ACIT v/s Ram Kishan Verma (2012) 143 TTJ 1 (Jp) (DPB - I 10-22), wherein the factual matrix is also the same. In fact, the cited case also of a coaching institute of Kota itself and there also the assessee used to receive the entire fees at the beginning of the year/session whereas it had to incur recurring expenditure on monthly basis. As a part of financial management/planning and to maxi…

Shri Deep Chand Garg, Ajmer vs. Income Tax Officer, Ajmer

In the result, the ground no

…free funds then it is to be presumed that the payments were made out of the assessee's own funds and not out of borrowed funds. In support, reliance was placed on Kushalbagh Marbles (P) Ltd vs JCIT (ITA No. 104/Jodh/2016) and ACIT vs. Ram Kishan Verma (2012) 143 TTJ 1 (JP). 6. Per contra, the ld. DR taken us through the findings of the AO which reads as under:- “The submission of the AR is considered but not accepted for the following reasons. 1. The assessee has forwarded advances too to his related concerns of Rs 1,16,23,549/- which are there throughout the year. 2) The AR has stated that the assessee coul…

Shri Kedar Prasad Khandelwal, Tonk vs. Deputy Commissioner of Income Tax, Jaipur

In the result, appeal of the assessee is allowed in part

…est free funds have been given out of the same and hence, 5 ITA 878/JP/2017_ Shri Kedar Pd. Khandelwal Vs DCIT no interest can be disallowed. For this purpose, reliance is placed on the following judicial pronouncements: (i) ACIT v/s Ram Kishan Verma (2012) 143 TTJ 1 (Jp) (ii) CIT v/s Ram Kishan Verma (2016) 132 DTR 107 (Raj.) (iii) CIT v/s Radico Khaitan Ltd. (2005) 194 CTR 451/274 ITR 354 (All) (HC) (iv) CIT v/s Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Mum) 9. In view of the above facts and circumstances, we do not find any merit in the disallowance of interest so made by the A.O., accordingly, the…

Vinod Kumar Mittal, Beawar vs. ITO, Ajmer

In the result, the appeal of the assessee is partly allowed

…95,71,170/-, as against which the alleged interest free loan was of Rs.7,92,300/- only which is much lower than the interest free funds. This Hon’ble Bench has also been taking a consistent view to this effect and replied upon ACIT v/s Ram Kishan Verma (2012) 143 TTJ 1 (Jp), which was affirmed by the Hon`ble Rajasthan High Court vide para 12 & 14 in the case of CIT v/s Ram Kishan Verma (2016) 132 Taxman 107 (Raj.) (DPB 18-25). He further submitted that a comparatively recent decision in the case of Hero Cycle P. Ltd vs. CIT (2015) 128 DTR 1/379 ITR 347 (SC) also directly supports the case of the assessee and s…

Allen Career Institute, Jaipur vs. JCIT, Kota

In the result, the ground no

…आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh dqy Hkkjr] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ ITA. No. 10/JP/13 fu/kZkj.k o"kZ@Assessment Year : 2009-10 cuke M/s Allen Career Institute, The JCIT, Vs. CP-6, Indra Vihar, Kota. Range-2, Kota. LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAEFA3972B vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Mahendra Gargieya (Adv) & : Shri Hemang Gargieya (Adv) jktLo dh vksj ls@ Revenue by : Shri R.A. V…