Itxa/1911/2011 Of Commissioner Of Income Tax Central -Ii v. M/S Guruprerna Enterprises

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1911 OF 2011 Commissioner of Income Tax Central-II..Appellant.V/s.M/s. Guruprerna Enterprises..Respondent. Mr. A. R. Malhotra, for the Appellant.Mr. Sashi Tulsia with Mr. P. C. Tripathi, for the Respondent. P.C:- CORAM: J.P.DEVADHAR & M.S.SANKLECHA,JJ.DATE : 5[th] MARCH, 2013. Heard. 2In this Appeal by the Revenue for the Assessment Year 2005-06, following questions have been raised for our consideration:- (a)Whether on the facts and in circumstances of the case, the Tribunal was justified in law in deleting the reduction of work in Progress (WIP) in respect of interest expenses with regard to unsecured loans which have been regarded by the Tribunal as genuine as the assessee had discharged the burden of proof from his side by filing confirmation letters, P. A. No. Copies of Income Tax returns of the relevant A.Y's and bank account copies from each and every creditors ignoring the facts that the capacity, identity and genuineness of transaction in respect of the person from whom the assessee has taken unsecured loan remains unproved? (b)Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that only the assessment pending before the Assessing Officer for completion shall abate and that the issues decided in the assessment cannot be reconsidered and re-adjudicated unless there is some fresh material found during the course of search without appreciating the facts that once search is made, assessment gets reopened for six years even if no incriminating material is found? (c)Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that when assessment has been done under Section 143(1) and the subsequent assessment done under Section 153C amounts to reconsideration and re-adjudication? 3We have by our order today (5[th] March, 2013) not entertained the Revenue's Appeal being Income Tax Appeal Nos.1860 of 2011 and 1910 of 2011 for the Assessment Years 2003-04 and 2004-05. The issue involved in both the above appeals were in respect of the cash credits sought to be taxed by the Revenue under Section 68 of the Income Tax Act, 1961 (the said Act). 4In this Appeal for Assessment Year 2005-06, the Revenue seeks to disallow the interest paid on the un-secured loans obtained by the Respondent-Assessee from its Creditors during the Assessment Years 2003-04 and 2004-05. 5The question raised in the present Appeal is consequent to the question raised by the Revenue in the Assessment Years 2003-04 and 2004-05 with regard to the amount bought to tax as cash credits under Section 68 of the Income Tax Act, 1961. The Tribunal's finding that the loans are genuine, has not been interfered by this Court in the two Appeals for Assessment Years 2003-04 and 2004-05. The payments of interest made on the above loans in this Assessment Year has also to be allowed as a consequence of the loan being held to be genuine. 6In these circumstances, we see no reason to entertain the proposed questions of law. 7Accordingly, appeal is dismissed with no order as to costs. (M.S.SANKLECHA,J.) (J.P.DEVADHAR,J.)