Torrent Financier's v. Asstt. CIT

R. K. INDUSTRIES UNIT- II LLP,BHAVNAGAR vs. THE ACIT, CIRCLE-1, BHAVNAGAR

In the result, the appeal of the assessee is allowed

Bench: Shri Sanjay Garg & Makarand V. Mahadeokarasstt. Year: 2016-17 R.K. Industries Unit- Ii Llp Assistant 3Rd Floor Shree Ram House, Vs. Commissioner Of Khergada Street, Khargate, Income Tax, Circle-1, Bhavnagar – 364 001 Bhavnagar – 364 002 Pan: Aadfr 4127 N (Applicant) (Responent) : Shri Hiren Trivedi, Ar Assessee By : Revenue By Shri Santosh Kumar, Sr. Dr

…s. 238.43 crore on 01.04.2015 and Rs. 240.95 crore on 31.03.2016. Reliance was placed on several judicial precedents, including the decisions of Co- ordinate Benches in case of Xebec Exports [126 TTJ 190] (2009) - Delhi ITAT and in case of Torrent Financiers [73 TTJ 624] – Ahmedabad ITAT, to emphasise that no disallowance can be made if interest free funds available with the assessee exceed the interest free advances. 2.4 The assessee also argued before the CIT(A) that on a net basis, after adjusting interest receivable from one partner and interest notionally chargeable to others at 7.95 percent, the firm was re…

CORRTECH INTERNATIONAL PVT. LTD.,AHMEDABAD vs. THE ADDL. CIT, TDS RANGE,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

CORRTECH INTERNATIONAL PVT. LTD.,AHMEDABAD vs. THE ADDL. CIT, TDS RANGE,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2),, AHMEDABAD vs. M/S. CORRTECH INTERNATIONAL PVT. LTD.,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

CORRTECH INTERNATIONAL PVT.LTD.,,AHMEDABAD vs. DY. COMMISSIONER OF INCOME TAX,(OSD),, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

THE DCIT(OSD) RANGE-1,, AHMEDABAD vs. M/S. CORRTECH INTERNATIONAL PVT.LTD.,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

CORRTECH INTERNATIONAL PVT.LTD.,,AHMEDABAD vs. THE ACIT.,(OSD) RANGE-1,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

THE DCIT(OSD) RANGE-1,, AHMEDABAD vs. M/S. CORRTECH INTERNATIONAL PVT.LTD.,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

THE DCIT(OSD)RANGE-1,, AHMEDABAD vs. CORRTECH INTERNATIONAL PVT.LTD.,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

CORRTECH INTERNATIONAL PVT.LTD.,,AHMEDABAD vs. THE ACIT.,(OSD)RANGE-1,, AHMEDABAD

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

…l, the entire addition of Rs.51,10,672/- ought to have been deleted keeping in view the facts of the case and the legal position in support thereof following the decision of Hon'ble ITAT Ahmedabad Bench in the case of Torrent Financier's vs. Asstt. CIT (2001) 73 TTJ 624 (Ahd.). 5. The learned CIT(A) has erred in law and on facts in confirming the disallowance on account of difference in TDS vis-a-vis income credited in books of account to the extent of Rs.12,67,467/- without proper consideration and appreciation of the facts of the case and more particularly the fact that identical addition in previous year i.e.A…

AARVEE DENIMS & EXPORTS LTD.,,AHMEDABAD vs. THE DY. COMMISSIONER OF INCOME TAX,, AHMEDABAD

In the result, appeal of the assessee is partly allowed, while that of the Revenue is dismissed

Bench: S/Shri Pramod M. Jagtap & T.R. Senthil Kumarassessment Year :2012-13 Aarvee Denims & Exports Dcit, Cir.1(1)(1) 191, Shahwadi, Vs Ahmedabad. Nr.Old Octroi Naka Narol-Sarkhej Highway Ahmedabad 382 405. Pan : Aabca 6019 P Assessment Year : 2012-13 Dcit, Cir.1(1)(1) Aarvee Denims & Exports Ahmedabad. Vs Ahmedabad 382 405. Pan : Aabca 6019 P अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee By : Shri D.K. Parikh, Ar Revenue By : Shri V.K. Singh, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 24/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/03/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Cross Appeals Filed By The Assessee & The Revenue Are Against Order Dated 30.3.2016 Passed By Ld.Commissioner Of Income-Tax (Appeals)-1, Ahmedabad [For Short “Ld.Cit(A)] In Appeal No.Cit(A)-1/Dcit, Cir.1(1)(1)/738/2014-15 Relating To The Assessment Year 2012-13. We Dispose Of Both The Appeals By This Common Order.

…nterest free funds, the ground of the appellant deserves to be accepted as the net cash profit for the year under consideration is more than 47 Crores as against which Capital work in process is only 7.94 Crores. The decision in the case of Torrent Financiers 73 TTJ 624 (AHD) and Bombay High Court in the case of CIT vs Reliance Utility & Power Ltd 313 ITR 340 also lays down how the presumption about nexus is to be drawn. I have also considered the decision of the Delhi ITAT in the case of ACIT vs. Asmit Singh ITA No: 1862/Delhi/ 2012 in which CIT(A) deleted disallowance which was confirmed in favour of assessee b…

THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, AHMEDABAD vs. M/S. AARVEE DENIMS & EXPORTS LTD.,, AHMEDABAD

In the result, appeal of the assessee is partly allowed, while that of the Revenue is dismissed

Bench: S/Shri Pramod M. Jagtap & T.R. Senthil Kumarassessment Year :2012-13 Aarvee Denims & Exports Dcit, Cir.1(1)(1) 191, Shahwadi, Vs Ahmedabad. Nr.Old Octroi Naka Narol-Sarkhej Highway Ahmedabad 382 405. Pan : Aabca 6019 P Assessment Year : 2012-13 Dcit, Cir.1(1)(1) Aarvee Denims & Exports Ahmedabad. Vs Ahmedabad 382 405. Pan : Aabca 6019 P अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assessee By : Shri D.K. Parikh, Ar Revenue By : Shri V.K. Singh, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 24/02/2022 घोषणा क" तार"ख /Date Of Pronouncement: 30/03/2022 आदेश/O R D E R Per T.R. Senthil Kumar: These Cross Appeals Filed By The Assessee & The Revenue Are Against Order Dated 30.3.2016 Passed By Ld.Commissioner Of Income-Tax (Appeals)-1, Ahmedabad [For Short “Ld.Cit(A)] In Appeal No.Cit(A)-1/Dcit, Cir.1(1)(1)/738/2014-15 Relating To The Assessment Year 2012-13. We Dispose Of Both The Appeals By This Common Order.

…nterest free funds, the ground of the appellant deserves to be accepted as the net cash profit for the year under consideration is more than 47 Crores as against which Capital work in process is only 7.94 Crores. The decision in the case of Torrent Financiers 73 TTJ 624 (AHD) and Bombay High Court in the case of CIT vs Reliance Utility & Power Ltd 313 ITR 340 also lays down how the presumption about nexus is to be drawn. I have also considered the decision of the Delhi ITAT in the case of ACIT vs. Asmit Singh ITA No: 1862/Delhi/ 2012 in which CIT(A) deleted disallowance which was confirmed in favour of assessee b…

THE DY. CIT, CIRCLE-1(1)(2),, AHMEDABAD vs. M/S. CHIRIPAL INDUSTRIES LTD.,, AHMEDABAD

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

…As the interest free funds enjoyed by the appellant are far in excess of the interest free advances made by appellant, no disallowance u/s 36(i)(iii) can be made in case of appellant. In this connection the appellant relies on the decision of Torrent Vs. ACIT 73 TTJ 624(Ahd). The entire interest-free funds include owner's own capital, accumulated profits and other interest-free creditors and loans, if total interest-free advances including debit balances of partners do not exceed the total interest-free funds available with the assesses, no interest is disallowable on account of utilisation of funds for non-busin…

THE DY. CIT, CIRCLE-1(1)(2),, AHMEDABAD vs. M/S. CORRTECH ENERGY LTD.,, AHMEDABAD

In the result, the appeal of the revenue is dismissed

…orders of the authorities below. We find that the assessee-company has sufficient, interest-free funds. The ld. counsel for the assessee has placed reliance on the decision of Hon'ble coordinate Bench (ITAT Ahmedabad) in the case of Torrent Financiers (2001) 73 TTJ 624 wherein the Tribunal has held as under:- "Entire interest-free funds available with the assessee is to be considered. The entire interest-free funds include owner's own capital, accumulated profits and other interest-free creditors and loans, if total interest-free advances including debit balances of partners - 'do not exceed the total interest-f…