Lachmandas Mathura v. CIT

DCIT, CC-1(3), Kolkata vs. M/S Bonai Industrial Company Ltd., Kolkata

In the result, the appeals filed by the Revenue (in ITA no

Bench: Shria. T. Varkey, J.M &Dr. A.L.Saini, A.M आयकरअपीलसं./Ita No.1533/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Bonai Industrial Company Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacb 9156 F (Appellant) .. (Respondent) & आयकरअपीलसं./Ita No.1532/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Feegrade & Company Pvt. Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacf 6825 D (Appellant) .. (Respondent) Appellant By :Shri A. Bhattacharjee, Addl. Cit Respondent By :Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 04/10/2018 घोषणाक"तार"ख/Date Of Pronouncement : 10/10/2018 आदेश / O R D E R Per Dr. A. L. Saini: These Two Appeals Filed By The Revenue, Pertaining To Assessment Year 2014-15 Are Directed Against Separate Orders Passed By The Ld. Commissioner Of Income Tax(Appeals)-20, Kolkata,Which In Turn Arise Out Of Separate Assessment M/S. Bonai Industrial Company Ltd M/S. Feegrade& Company Pvt. Ltd. Assessment Year: 2014-15 Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act 1961 (Hereinafter Referred To As The ‘Act’).

…such the interest on delayed payment is not in the nature of penalty in the instant case on hand. The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : “The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's…

DCIT, CC-1(3), Kolkata vs. M/S Feegrade & Company Pvt. Ltd., Kolkata

In the result, the appeals filed by the Revenue (in ITA no

Bench: Shria. T. Varkey, J.M &Dr. A.L.Saini, A.M आयकरअपीलसं./Ita No.1533/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Bonai Industrial Company Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacb 9156 F (Appellant) .. (Respondent) & आयकरअपीलसं./Ita No.1532/Kol/2017 ("नधा"रणवष" / Assessment Year: 2014-15) Dcit, Cc-1(3)/Kolkata Vs. M/S. Feegrade & Company Pvt. Ltd. Aayakar Bhawan Poorva, 3Rd Floor, 8A, Express Tower, 42A, Shakespeare 110-Shantipally, Kolkata – 700 107. Sarani, Kolkata – 700 017. "थायीलेखासं./जीआइआरसं./Pan/Gir No. :Aaacf 6825 D (Appellant) .. (Respondent) Appellant By :Shri A. Bhattacharjee, Addl. Cit Respondent By :Shri Subash Agarwal, Advocate सुनवाईक"तार"ख/ Date Of Hearing : 04/10/2018 घोषणाक"तार"ख/Date Of Pronouncement : 10/10/2018 आदेश / O R D E R Per Dr. A. L. Saini: These Two Appeals Filed By The Revenue, Pertaining To Assessment Year 2014-15 Are Directed Against Separate Orders Passed By The Ld. Commissioner Of Income Tax(Appeals)-20, Kolkata,Which In Turn Arise Out Of Separate Assessment M/S. Bonai Industrial Company Ltd M/S. Feegrade& Company Pvt. Ltd. Assessment Year: 2014-15 Orders Passed By The Assessing Officer U/S 143(3) Of The Income Tax Act 1961 (Hereinafter Referred To As The ‘Act’).

…such the interest on delayed payment is not in the nature of penalty in the instant case on hand. The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : “The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's…

DCIT, CC-1(3), Kolkata vs. M/S. Rungta Mines Ltd., Kolkata

In the result, the appeal of revenue is partly allowed for statistical purposes

…AT, ‘D‘ Bench, Kolkata in the case of supra has discussed the issue thoroughly analyzing with facts of the case laws of the Hon’ble Supreme Court in the case of Bharat Commerce Industries Ltd reported in (1998) 230 ITR 733(SC) & Lachmandas Mathura reported in 254 ITR 799(SC), wherein it was held interest paid on late deposit of sales tax is an allowable deduction u/s. 3791) of the Act. Relevant portion of tribunal order is reproduced herein below:- “12. Heard both the parties and perused the record including the order dt. 30-08- 2017 as relied on by the assessee before us. We find that the issue in hand is cover…

ACIT, CC-3(2), Kolkata vs. M/S. Narayani Sons. Pvt. Ltd., Kolkata

In the result, all the appeals of revenue are dismissed

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

…such the interest on delayed payment is not in the nature of penalty in the instant case on hand. The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : “The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's…

ACIT, CC-3(2), Kolkata vs. M/S. Narayani Sons. Pvt. Ltd., Kolkata

In the result, all the appeals of revenue are dismissed

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

…such the interest on delayed payment is not in the nature of penalty in the instant case on hand. The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : “The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's…

ACIT, CC-3(2), Kolkata vs. M/S. Narayani Sons. Pvt. Ltd., Kolkata

In the result, all the appeals of revenue are dismissed

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

…such the interest on delayed payment is not in the nature of penalty in the instant case on hand. The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 in favour of assessee. The relevant extract of the judgment is reproduced below : “The High Court has proceeded on the basis that the interest on arrears of sales tax is penal in nature and has rejected the contention of the assessee that it is compensatory in nature. In taking the said view the High Court has placed reliance on its Full Bench's…

M/S Saj Food Products Pvt. Limited, Kolkata vs. DCIT, Circle-12, Kolkata

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

Bench: Ao As 1 Well As Before Him In The First Appellate Stage & Confirmed The Impugned Addition Made By The Ao On This Count.

…he decisions of Hon’ble Supreme Court in the case of Bharat Commerce Industries Ltd Vs. CIT reported in (1998) 230 ITR 733 (SC). The Co-ordinate Bench also referred to the decision of Hon’ble Supreme Court in the case of Lachmandas Mathura Vs. CIT reported in 254 ITR 799 (SC), which held interest paid on late deposit of sales tax is an allowable deduction U/Sec. 37(1) of the Act. Relevant portion of order dt. 30- 08-2017 is reproduced herein below for better understanding:- The issue of delay in the payment of service tax is directly covered by the judgment of Hon’ble Apex Court in the case of Lachmandas Mathura…

I.T.O WD - 6(2), Kolkata. vs. M/S Axix Overseas Ltd, Kolkata

In the result, Revenue’s appeal is partly allowed

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…such, the amount of interest expense is eligible for deduction u/s. 37(1) of the Act, as it was incurred in the course of assessee’s business. In holding so, we draw the principle laid down by Hon'ble Supreme Court in the case of Lachmandas Mathuradas vs. CIT 254 ITR 799 (SC) wherein it was held as under:- “In taking decision the High Court had placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.). The said judgment of the Full Bench had been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732/15 Taxman 452 (A…

Axix Overseas Ltd, Kolkata vs. ITO, Ward - 7(1), Kolkata

In the result, Revenue’s appeal is partly allowed

Bench: Shri N.V.Vasudevan & Shri Waseem Ahmed

…such, the amount of interest expense is eligible for deduction u/s. 37(1) of the Act, as it was incurred in the course of assessee’s business. In holding so, we draw the principle laid down by Hon'ble Supreme Court in the case of Lachmandas Mathuradas vs. CIT 254 ITR 799 (SC) wherein it was held as under:- “In taking decision the High Court had placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.). The said judgment of the Full Bench had been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732/15 Taxman 452 (A…