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TMI Blog2015 (6) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of deferment of sales tax liability u/s. 43B of the Act, amounting to Rs. 3,74,93,860/-. 3. We have heard both the parties and perused the material placed before us. The Ground No. 1 is with regard to disallowance u/s. 43B on account of sales tax liability in respect of which the assessee was availing the benefit of Sales Tax Deferment Scheme. We find that similar issue was considered by the ITAT in assessee's own case for Assessment Years 2005-06 and 2006-07, and also for Assessment Year 2008-09; and the ITAT held that the disallowance u/s. 43B in respect of such sales tax liability on which the assessee is entitled to Sales Tax Deferment Scheme is not justified. The relevant portion of the order of the ITAT for Assessment Year 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Sales-tax Deferment of Rs. 2,44,70,672/-. This ground of appeal is allowed." 4. Having heard the submission of both the sides, we have been informed that in assessee's own case ITAT "B" Bench Ahmedabad vide an order dated 04/09/2009 titled as "The Dy.CIT vs. M/s. Riddhi Siddhi Gluco Biols Ltd." bearing ITA No. 1047/Ahd/2010 for A.Y. 2005-06 & ITA No. 1048/Ahd/2010 for A.Y. 2006-07, the Tribunal has followed the past history and dismiss the ground of the Revenue. Resultantly, for this year as well this ground of the Revenue is hereby dismissed." 4. The facts of the year under consideration are identical; we, therefore, respectfully following the above decision of Tribunal in assessee's own case for Assessment Year 2008-09, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are related and can be dealt with simultaneously. 9. The ld. Departmental Representative relied upon the order of the Assessing Officer and pointed out that there was the utilization of huge money for capital work-in-progress and also giving interest free advance to others. The assessee has borrowed the money and has paid interest of more than Rs. 6 crores thereon. Therefore, the Assessing Officer was fully justified in disallowing the proportionate interest. He, therefore, submitted that the order of the CIT(A) should be reversed and that of the Assessing Officer may be restored. 10. The Ld. Counsel for the assessee pointed out that the interest free fund available with the assessee is many times more than the investment in capital work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest free fund available with the assessee is more than 10 times of the capital work-in-progress and advance to others. Admittedly, the Assessing Officer has not pointed out that any borrowed money has been utilized for the purpose of investment in capital work-in-progress or for advance to others. He made proportionate disallowance merely on the presumption that the proportionate borrowed money must have been utilized for investment in capital work-in-progress, etc. We find that under the similar circumstances, Hon'ble Gujarat High Court in the case of Raghuvir Synthetics Ltd. (supra) upheld the decision of ITAT. In that case also the interest free fund available with the assessee was much more than the interest free loan given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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