Principal Commissioner Income Tax Surat-1 v. M/S. Raivat Impex

C/TAXAP/322/2020 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 322 of 2020 ==========================================================PRINCIPAL COMMISSIONER INCOME TAX SURAT-1 VersusM/S. RAIVAT IMPEX ==========================================================Appearance:MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALAandHONOURABLE MR. JUSTICE ILESH J. VORA Date : 28/01/2021 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, 'the Act, 1961') is at the instance of the revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Surat dated 13.12.2019 in ITA No. 56/SRT/2018 for A.Y. 2014-15.(for short, 'the Act, 1961') is at the instance of the revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Surat dated 13.12.2019 in ITA No. 56/SRT/2018 for A.Y. 2014-15. 2. The Revenue has proposed the following two substantial questions of law for consideration of this Court.of law for consideration of this Court. (i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is justified in upholding the decision of the Hon'ble ITAT/CIT(A) in deleting the disallowance made by the AO without appreciating the fact that assessee had taken undue benefits of section 10AA of the I.T. Act by not claiming interest on Capital and Remuneration which resulted in increase in exempt profit of the assessee?and in law, the Hon'ble ITAT is justified in upholding the decision of the Hon'ble ITAT/CIT(A) in deleting the disallowance made by the AO without appreciating the fact that assessee had taken undue benefits of section 10AA of the I.T. Act by not claiming interest on Capital and Remuneration which resulted in increase in exempt profit of the assessee? (ii)Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in upholding the order of the Ld. CIT(A)/ITAT in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA)(10) r.w.s. 10AA(9) in giving deductions of interest on Capital and Remuneration to partners of the assessee firm after finding that the assessee had taken undue benefits of Section 10AA by not claiming Interest on Capital and Remuneration to partners which resulted in increase in exempted profit of the assessee?”and in law, the Hon'ble ITAT was justified in upholding the order of the Ld. CIT(A)/ITAT in deleting the disallowance made by the Assessing Officer by invoking provisions of Section 80(IA)(10) r.w.s. 10AA(9) in giving deductions of interest on Capital and Remuneration to partners of the assessee firm after finding that the assessee had taken undue benefits of Section 10AA by not claiming Interest on Capital and Remuneration to partners which resulted in increase in exempted profit of the assessee?” 3. We have heard Ms. Kalpana Raval, the learned Senior Standing Counsel appearing for the revenue.Counsel appearing for the revenue. 3. We have heard Ms. Kalpana Raval, the learned Senior Standing Counsel appearing for the revenue.Counsel appearing for the revenue. 4. The Appeal does not merit consideration in view of the order passed by this Court in Tax Appeal No. 803 of 2019 decided on 10.02.2020. In fact we take notice of the fact that the Appellate Tribunal has referred to and relied upon the decision of this Court rendered in case of Ruta Jewels (Supra) i.e. the decision in Tax Appeal No. 803 of 2019, as evident from para-8 of the impugned order.passed by this Court in Tax Appeal No. 803 of 2019 decided on 10.02.2020. In fact we take notice of the fact that the Appellate Tribunal has referred to and relied upon the decision of this Court rendered in case of Ruta Jewels (Supra) i.e. the decision in Tax Appeal No. 803 of 2019, as evident from para-8 of the impugned order. 5. In view of above, this Tax Appeal fails and is hereby dismissed. (J. B. PARDIWALA, J) P.S. JOSHI (ILESH J. VORA,J)