Natu Satkar & Associates, Pune v. I.T.O. Ward 1(1) Pune, Pune

ITA 586/PUN/2009 | 2004-2005
Pronouncement Date: 29-10-2010 | Result: Allowed

Appeal Details

RSA Number 58624514 RSA 2009
Assessee PAN AAALN9997P
Bench Pune
Appeal Number ITA 586/PUN/2009
Duration Of Justice 1 year(s) 5 month(s) 16 day(s)
Appellant Natu Satkar & Associates, Pune
Respondent I.T.O. Ward 1(1) Pune, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 29-10-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-10-2010
Assessment Year 2004-2005
Appeal Filed On 13-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JM AND SHRI B. RAMAKOTAIAH AM I.T.A. NO. 586/PN/2009 : A.Y. 2004-05 NATU SATKAR & ASSOCIAT ES 1346 KASBA PETH PUNE-411 011 PAN AAALN 9997 P APPELLANT VS. I.T.O. WARD 1(1) PUNE RESPONDENT APPELLANT BY : SMT. DEEPA KHARE RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER B. RAMAKOTAIAH AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE CIT(A) I PUNE DATED 19-2-2009 ON THE POINT OF CO NFIRMATION OF PENALTY LEVIED U/S 271(1)(C) OF THE ACT FOR A.Y. 2004-05. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSMENT WA S COMPLETED U/S 143(3). DURING THE ASSESSMENT PROCEEDINGS THE A.O NOTICED THAT THE ASSESSEE HAS DEBITED BANK INTEREST OF RS. 13 71 555 /- IN RESPECT OF LOANS AVAILED BY IT WHERE THE PARTNERS WERE HAVING DEBIT BALANCE OF RS. 65 46 621/- IN RESPECT OF WHICH NO INTEREST WAS CHA RGED BY THE ASSESSEE. THE A.O INFERRED THAT THE ASSESSEE HAS DIVERTED INT EREST BEARING FUNDS FOR GIVING INTEREST FREE ADVANCES TO THE PARTNERS. THE CONTENTION OF THE ASSESSEE THAT THE BORROWINGS MADE BY THE PARTNERS F OR BUSINESS CONSIDERATION WAS NOT ACCEPTED BY THE A.O. HE ACCO RDINGLY DISALLOWED THE PROPORTIONATE INTEREST PAYABLE ON THE FUNDS GIV EN TO THE PARTNERS WITHOUT CHARGING INTEREST AMOUNTING TO RS. 10 47 45 9/- AND LEVIED THE PENALTY U/S 271(1)(C) IN RESPECT OF SAID DISALLOWAN CE. THE CIT(A) ALSO CONFIRMED THE PENALTY IMPOSED BY THE A.O.