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Acit Circle 1, Namakkal v/s Pkpn Spinning Mills Pvt. Ltd.


Company & Directors' Information:- K K P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1993PTC004731

Company & Directors' Information:- N R U SPINNING MILLS LIMITED [Active] CIN = U17111TZ1994PLC005591

Company & Directors' Information:- R G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011274

Company & Directors' Information:- P K P N SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1981PTC001034

Company & Directors' Information:- K R V SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002716

Company & Directors' Information:- V R SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1979PTC000836

Company & Directors' Information:- K A S SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1990PTC002955

Company & Directors' Information:- P S G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005234

Company & Directors' Information:- C P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005257

Company & Directors' Information:- N S C SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ2004PTC011093

Company & Directors' Information:- K T SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002678

Company & Directors' Information:- J G SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1991PTC011033

Company & Directors' Information:- S P SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1979PTC000862

Company & Directors' Information:- J G SPINNING MILLS PRIVATE LIMITED [Not available for efiling] CIN = U18101WB1991PTC050845

Company & Directors' Information:- M B S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1994PTC005005

Company & Directors' Information:- R D SPINNING MILLS LIMITED [Active] CIN = U17115PB1989PLC009763

Company & Directors' Information:- T K S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1988PTC002117

Company & Directors' Information:- K P M SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1995PTC006011

Company & Directors' Information:- J. C. SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17121TG2011PTC073799

Company & Directors' Information:- R R R SPINNING MILLS INDIA PRIVATE LIMITED [Active] CIN = U17111TZ1990PTC002745

Company & Directors' Information:- G P M SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17110PB2005PTC028070

Company & Directors' Information:- R R SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17111TZ1980PTC000984

Company & Directors' Information:- B B S M SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1990PTC002914

Company & Directors' Information:- P A SPINNING MILLS PVT. LTD. [Not available for efiling] CIN = U17111TN1989PTC018288

Company & Directors' Information:- M K G SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17115TZ1990PTC002952

Company & Directors' Information:- M S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17219PB1995PTC017064

Company & Directors' Information:- N G SPINNING MILLS PVT LTD [Active] CIN = U21010GJ1981PTC004505

Company & Directors' Information:- A A K. SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC005766

Company & Directors' Information:- G P G SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TN1987PTC014844

Company & Directors' Information:- E A P SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ2005PTC011782

Company & Directors' Information:- N S K SPINNING MILLS PRIVATE LIMITED [Under Process of Striking Off] CIN = U17111TZ1994PTC004816

Company & Directors' Information:- R. A. SPINNING MILLS PVT LTD [Strike Off] CIN = U17115PB1988PTC008852

Company & Directors' Information:- K P K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1961PTC000431

Company & Directors' Information:- H K SPINNING MILLS PVT LTD [Active] CIN = U17111PB1986PTC006672

Company & Directors' Information:- A V S SPINNING MILLS INDIA PRIVATE LIMITED [Strike Off] CIN = U17111TZ2004PTC011275

Company & Directors' Information:- K S SPINNING MILLS PRIVATE LIMITED [Active] CIN = U17299HR2021PTC092277

Company & Directors' Information:- O P K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17120DL1988PTC032165

Company & Directors' Information:- P N M SPINNING MILLS PVT LTD [Strike Off] CIN = U17111TN1981PTC008870

Company & Directors' Information:- J K K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1981PTC001085

Company & Directors' Information:- R K SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17100KA1995PTC018864

Company & Directors' Information:- J K R SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17111TZ1995PTC006781

Company & Directors' Information:- P. D. R. SPINNING MILLS PRIVATE LIMITED [Strike Off] CIN = U17112AP2006PTC052124

    I.T.A.Nos. 2797, 2798 & 2799/Chny of 2017

    Decided On, 11 September 2018

    At, Income Tax Appellate Tribunal Chennai

    By, THE HONOURABLE MR. GEORGE MATHAN
    By, JUDICIAL MEMBER & THE HONOURABLE MR. A. MOHAN ALANKAMONY
    By, ACCOUNTANT MEMBER

    For the Appellant: S. Vijayaprabha, JCIT, D.R. For the Respondent: Saroj Kumar Parida, Advocate.



Judgment Text

George Mathan, Judicial Member:

1. ITA Nos. 2797, 2798 & 2799/Chny/2017 are appeals filed by Revenue against the separate Orders passed by the Commissioner of Income Tax, Salem in Appeal Nos.56/2016-17, & 57/2016-17 & 58/2016-17, all dated 30.08.2017 for the assessment years 2008-09, 2010-11 & 2011-12 respectively.

2. Mrs.S.Vijayaprabha represented on behalf of the Revenue, and Mr.Saroj Kumar Parida represented on behalf of the Assessee.

3. When the appeals are taken up for hearing, the representative for the Revenue fairly submitted that the tax effect involved in the appeal No.2798/Chny/2017 for assessment year 2010- 11 is below the prescribed limit. It was a further submission that the CBDT in its latest Circular No.3/2018 dated 11.07.2018 instructed its officers to withdraw all the appeals pending before the ITAT where the tax effect is less than `20 lakhs. Consequently, the appeal of Revenue in for assessment year 2010-11 is dismissed on account of tax effect.

4. In respect of appeals in 2797/Chny/2017 & 2799/Chny/2017, it was submitted by ld.D.R that the issue was against the order of Ld.CIT(A) in deleting the addition made by the ld. Assessing Officer on account of the disallowance of interest expenses in respect of interest attributable to the interest free loans advanced by the assessee to the sister concerns of the assessee. It was a submission that the Ld.CIT(A) had deleted the addition by following the decision of Hon'ble Supreme Court in the case of S.A. Builders Ltd., Vs. CIT [288 ITR 1 (SC)]. It was a further submission that the decision of Hon'ble Supreme Court in S.A. Builders Ltd., was now under review. It was a submission that the balance sheet and ledger A/cs, which had been produced first time before the Ld.CIT(A), was not confronted to the ld.

Assessing Officer and Consequently, there was violation of Rule-46A(3) of Income Tax Rules, 1962. It was a prayer that the order of the CIT(Appeals) is liable to be reversed.

5. In reply, ld.A.R vehemently supported the order of the CIT(Appeals).

6. We have considered the rival submissions. Admittedly, the balance sheets and ledger accounts in respect of the assessee for the relevant assessment years and earlier assessment years cannot be considered as fresh evidence, as the same are available before the ld. Assessing Officer in view of the fact that the assessment u/s.143(3) of the Act was done by the ld. Assessing Officer. A perusal of the balance sheet and Profit And Loss Account of the assessee clearly shows that the assessee has Rs. 22.69 crores in the form of capital & Reserve for assessment year 2008-09, Rs. 24.78 crores for assessment year 2009-10, Rs. 32.31 crores for assessment year 2010-11 and Rs. 34.07 crores for assessment year 2011-12. The assessee has also cash profits to an extent of Rs. 5.37 crores for assessment year 2008-09, Rs. 10.97 crores for assessment year 2009-10, Rs. 5.08 crores for assessment year 2010-11 and Rs. 17.41 crores for assessment year 2011-12. As against this, the loan given totaled to Rs. 5.39 crores for assessment year 2008-09, Rs. 7.69 crores for assessment year 2009-10, Rs. 2.83 crores for assessment year 2010-11 and Rs. 09.49 crores for assessment year 2011-12. This clearly:-

shows that the assessee had adequate non-interest bearing funds available with it for giving the advances to the sister concerns. This being so, as the Revenue has not been able to disprove these specific facts, we are of the view that the order of CIT(Appeals) following the decision of Hon'ble Supreme Court in the case of

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S.A. Builders Ltd., referred to supra, as also the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Hotel Savera ( 239 ITR 795 (Mad.) ) is on the right footing and does not call for any interference. Both the appeals of the Revenue in for assessment years 2008-09 & 2011-12 stand dismissed. 7. In the result, all the three appeals filed by the Revenue are dismissed.
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