The Principal Commissioner Of Income Tax (Central) Surat v. M/S Comed Chemicals Ltd

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 470 of 2018 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL) SURATVersus M/S COMED CHEMICALS LTD ==========================================================Appearance:MR M.R. BHATT SR. ADVOCATE WITH MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIand HONOURABLE MR.JUSTICE B.N. KARIA Date : 09/05/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.The Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 12.06.2017 raising the following substantial question of law for our consideration; Whether on facts and circumstances of the case and in law, the Appellate Tribunal was right in deleting the entire addition to the tune of Rs.61,70,295/- made on account of investment of Rs.5 crores in sister concern ? 2.The first question pertains to addition made by the Assessing Officer in view of the interest free loan given by the assessee to a sister concern. The CIT(A) deleted the same on the ground that the assessee had sufficient interest free funds. The Tribunal upheld such view giving additional reason that the decision of the assessee was actuated by business considerations. No question of law arises. 3.The second issue pertains to the rate of depreciation. The assessee claimed depreciation at the rate of 15%. The Assessing Officer granted depreciation at the rate of 10%. From the record, we notice that in the earlier year, the assessee's claim of depreciation at the rate of 15% was accepted by the CIT(A) / Tribunal. The Revenue had not carried such issue in further appeal. 4.In the result, the Tax Appeal is dismissed. (AKIL KURESHI, J) PRAVIN KARUNAN (B.N. KARIA, J)