Itta/28/2003 Of Sri Rama Medical v. The Commissioner Of Income Tax

THE HON’BLE SRI JUSTICE L.NARASIMHA REDDYANDTHE HON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A.Nos.1, 20, 25, 27 & 28 OF 2003 COMMON JUDGMENT: (Per Hon’ble Sri Justice L. Narasimha Reddy) In this batch of Income Tax Appeals field under Section 260A ofthe Income Tax Act, 1961, a common order, dated 02.08.2002, passedby the Hyderabad Bench ‘B’ of the Income Tax Appellate Tribunal (forshort, ‘the Tribunal’) in I.T.A.Nos.235 to 239/Hyd/2002, is challenged. Heard learned counsel for the appellant and Sri S. R. Ashok,learned counsel for the respondent. The controversy is about the disallowance of the credits, whichwere taken note of during the search operations. The appellantpleaded that the credits were, in fact, reflected in the books of accountsin the corresponding assessment years and there was no basis fordisallowing them in the block assessment. As a corollary of this, itclaimed interest on such credits. The matter pertaining to the disallowance of credits in respectof the appellant itself, that too in relation to the very search, was dealtwith by this Court in I.T.T.A.No.21 of 1999. Through order dated29.12.2011, a Division Bench of this Court took the view that oncecredits are reflected in the books of accounts in the correspondingassessment years, the same needs to be taken note of while makingthe block assessment. From this premise, it flows that the interest thathas accrued on the credits must also be taken into account. Hence, we allow the appeals and direct that the appellant isentitled to deduction of interest on such of the credits noted in searchoperations, which were reflected in the books of accounts in thecorresponding assessment years. There shall be no order as to costs. The miscellaneous petitions filed in the appeals shall standdisposed of. _____________________ L. NARASIMHA REDDY, J. ______________________ CHALLA KODANDA RAM, J. 20.08.2014KH