9911796707
TMI Blog2019 (8) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by Assessee showing loss of Rs. 5,40,43,07,905/-. The Assessment Order dated 27.03.2015 was passed U/s 143(3) of Income Tax Act, 1961 ("IT Act", for short) wherein an addition of Rs. 553,90,97,000/- was made on account of disallowance of unpaid interest of GOI loan; income was assessed at Rs. 13,47,89,095/-. The relevant portion of the Assessment Order is reproduced as under: "4.1 Schedule to the Profit & Loss account of the assessee for the year under consideration reveals that a sum of Rs. 5,53,90,97,000/- has been debited under the head interest paid under the heads with the following details;- i) Interest on Loans from GOI Rs. 4,77,78,33,000/- ii) Interest others Rs. 79,63,000/- iii) Penal interest on GOI loan Rs. 75,33,01,000/- Total Rs. 5,53,90,97,000/- 4.2 The interest debited on account of borrowings from GOI remains unpaid during the year. Further perusal of schedule '4' of the Balance Sheet for the year under consideration makes it clear that such unpaid interest has been added to the loan amounts outstanding towards the GOl. As per section 43B (d) & (e) of the Income-tax Act, 1961, any sum payable by the assessee as interest on any lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome within the meaning of explanation 1 to the sub-section (1) of the section 271 1) (c) of the Income Tax Act, 1961 are also initiated." (2.1) Aggrieved, the Assessee filed appeal before Learned Commissioner of Income Tax (Appeals)-39, New Delhi. Vide order dated 23.11.2016, the Ld. CIT(A) deleted the aforesaid addition of Rs. 553,90,97,000/-. The relevant portion of the order of Ld. CIT(A) is as under: "5. I have considered the impugned order u/s 143(3), the submissions of the appellant along with the court decisions and order of the first appellant authority relied upon by the letter and extent law in this regard. It is observed from the impugned order that the appellant's claim of interest of Rs. 5,53,90,97,000/- debited to the P&L Account was disallowed. The breakup of the interest expenditure claimed by the appellants is as under - i) Interest on Loans from GOI Rs. 4,77,78,33,000/- ii) Penal Interest on GOI Loans Rs. 75,33,01,000/- iii) interest others Rs. 79,63,000/- Total Rs. 5,53,90,97,000/- As the interest debited on account of borrowing from GOI remained unpaid during the relevant previous year, the AO has resorted to applicability of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as mentioned in Section 43B of the Act. As per the various judicial precedents including those mentioned by the appellant, it is a well settled principle of law that legal provisions should be interpreted according to the words mentioned therein. There is no scope to intend something more or less than what is written therein. Neither anything extra can be read into it which is not there, nor anything less can be read from what is written there. If the legislature has intended to cover loans from Government of India within the ambit of section 43B, it would have mentioned and included the same just as it has mentioned and included a public financial institution or a state financial corporation or a state industrial investment corporation or a scheduled bank in clause (d) and (e) of section 43B. 5.3 It is further observed from the available records that the factual submissions made by the AR of the appellant as regards the decision of the first appellate authority on this point is borne out from records. From the appellate orders in the case of this appellant, it is seen that for AYs 2001 - 02 to 2009-10 and 2011-12 the CIT (A) has allowed the appellant's claim that the non-payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex Court as well as the jurisdictional High Court regarding the applicability of the provisions of Section 43B of the Act in disallowing the unpaid interest on GOI loan when there is no express provision under the Act to that effect, I agree with the contention of the appellant on this point as well as with the aforementioned appellate orders of the first appellate authority as well as that of the ITAT Delhi in a similar case mentioned above and accordingly, delete the disallowance made u/s 43B (Rs. 553,90,97,000/-) in the impugned order." (3) The present appeal before us in Income Tax Appellate Tribunal ("ITAT", for short) has been filed by Revenue against the aforesaid impugned order dated 23.11.2016 of the Ld. CIT(A). The appeal was listed for hearing in ITAT, on 29.07.2019, and again on 01/08/2019. On both the days, Shri S.S. Rana Learned Commissioner of Income Tax (Departmental Representative) ["Ld. CIT(DR)", for short] was appeared on behalf of Revenue. However, Assessee was not represented by anybody. The Ld. CIT(DR) fairly brought to our notice that the issue in dispute is covered in favour of the assessee by order dated 28.11.2018 of Co-ordinate Bench of ITAT, Delhi, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order in earlier years, for which, the issue needs to be adjudicated by the CIT(A). Therefore, we are remanding back this issue to the file of the CIT(A). Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Ground No. 3 is accordingly allowed for statistical purpose." (3.1) Although, the Ld. CIT(DR) brought to our attention that matter is covered in favour of the assessee by aforesaid order dated 28.11.2018 of Co-ordinate Bench of ITAT, Delhi; yet he however, requested that his written submissions may be considered. The written submissions of Ld. CIT(DR) are reproduced as under: "Sub: Written Submission in the above case- reg. In the above case, it is humbly submitted that the following decisions may kindly be considered with regard to cessation of liability u/s 41(1) of I.T.Act: 1. Rollatainers Ltd. Vs CIT f20111 15 taxmann.com 111 (Delhi)/r20111 203 Taxman 31 (Delhi)(MAG.)/r20111 339 ITR 54 (Delhi)/r20121 250 CTR 25 (Delhi) (Copy Enclosed) Assessee-company was declared a sick company by BIFR. It approached CDR cell for settlement of outstanding dues of various banks/institutions. CDR cell approved reworked restructuri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from the side of the assessee company. We have also perused the materials available on record. The Ld. CIT(DR) has fairly submitted that in identical facts, the Co-ordinate Bench of ITAT, Delhi has already taken a view, on the disputed issue, in favour of the assessee vide aforesaid order dated 28.11.2018 in assessee's own case. Relevant portion of the aforesaid order dated 28.11.2018 of Co-ordinate Bench of ITAT, Delhi has already been reproduced earlier in this order in foregoing paragraph no. (3). Respectfully following the aforesaid order dated 28.11.2018 of Co-ordinate Bench of ITAT, Delhi in assessee's own case, we also decide the issue in dispute in favour of the assessee and dismiss the ground of appeal filed by Revenue. Accordingly, the appeal filed by Revenue is dismissed. (4.1) Before we part; we place on record our appreciation for extraordinary assistance provided by Ld. CIT(DR) in expeditious disposal of this appeal, even in the absence of any assistance available to us from the assessee's side at the time of hearing. By bringing it to the notice of the Bench, in the absence of anyone appearing from the assessee's side, that the disputed issue is covered, by ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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