BABA SATYANARAYAN HIMGHAR P. LTD.,,HOOGHLY vs. ACIT, CIRCLE - 23, HOOGHLY, HOOGHLY
In the result, appeal of the assessee is allowed
ITA 2027/KOL/2017[2012-13]Status: DisposedITAT Kolkata04 May 2018AY 2012-13
Bench: Sri J. Sudhakar Reddy] I.T.A. No. 2027/Kol/2017 Assessment Year: 2012-13 Baba Satyanarayan Himghar P. Ltd.………………………..……..………………………………Appellant C/O. S.N. Ghosh & Associates, Advocates Seben Brothers’ Lodge P.O. Buroshibtala Chinsurah Dist. Hooghly Pin – 712 105 [Pan : Aacfb 7882 M] Acit, Circle-23, Hooghly…………..…………….…………………………………………….………Respondent Aaykar Bhawan Hooghly G.T. Road, Khadina More P.O. Chinsurah P.S. Chinsurah Dist. Hooghly Pin – 712 1010 Appearances By: Shri Somnath Ghosh, Advocate, Appeared On Behalf Of The Assessee. Shri Ranu Biswas, Dr, Appearing On Behalf Of The Revenue Date Of Concluding The Hearing : April 18Th, 2018 Date Of Pronouncing The Order : May 4Th, 2018 O R D E R Per J. Sudhakar Reddy :- This Is An Appeal Filed By The Assessee Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-11, Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 22/09/2017, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2012-13. 2. The Assessee Is A Private Limited Company & Is In The Business Of Cold Storage & Trading In Potatoes. The Issue That Arises For My Adjudication Is Whether The Disallowance Made By The Assessing Officer Of An Amount Of Rs.5,64,480/-, Being Interest Claimed U/S 36(1)(Iii) Of The Act Is Correct As The Facts & Circumstances Of The Case. 2.1. The Assessee Had Taken Loan From Allahabad Bank & Paid Interest @ 8.82% Amounting To Rs.38,35,069/-. The Assessee Had Invested An Amount Of Rs.64,00,000/- As Share Application Money In A Company M/S. Bhaktimoyee Cold
Section 250Section 36(1)(iii)
…Act in as much as the conditions precedent for deduction under the both the provisions is same, namely, an expenditure must have been incurred for the purposes of business.” 5. The Hon’ble Delhi High Court in the case of CIT vs. Tulip Star Hotels Ltd. [2011] 338 ITR 482 (Delhi), has held as follows:- “….the assessee was in the business of owning, running and managing hotels. For the effective control of new hotels acquired by the assessee under its management it had invested in a wholly owned subsidiary company. The expenditure incurred was expenditure incurred for business purposes and was thus allowable under…
