Gautam Cable Industries vs Dy. Commissioner Of Income Tax ...
2010 Latest Caselaw 247 Del

             THE HIGH COURT OF DELHI AT NEW DELHI

%                                     Judgment delivered on: 18.01.2010


+            ITA Nos. 1035/2007, 147/2009 & 152/2009


GAUTAM CABLE INDUSTRIES                                   ... Appellant


                                      - versus -


DY. COMMISSIONER OF INCOME TAX
CENTRAL CIRCLE 9                                          ... Respondent

Advocates who appeared in this case:

For the Appellant : Mr K.R. Manjani with Mr Madhu Sudan Sahni For the Respondent : Ms Prem Lata Bansal with Ms Anshul Sharma

CORAM:-

HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE SIDDHARTH MRIDUL

1. Whether Reporters of local papers may be allowed to see the judgment ?

2. To be referred to the Reporter or not ?

3. Whether the judgment should be reported in Digest ?

BADAR DURREZ AHMED, J (ORAL)

CM No.1569/2008 in ITA No.147/2008, 2601/2008 in ITA 152/2008

Delay in filing the appeal is condoned.

ITA Nos. 1035/2007, 147/2009 & 152/2009

1. These three appeals arise out of the common order dated

02.06.2006 passed by the Income-tax Appellate Tribunal in ITA Nos. 40,

1391 and 3319/Del/2001-02 pertaining to the assessment years 1997-98,

1998-99 and 1999-2000. The appellant / assessee is aggrieved by the

ITA Nos.1035/2009,147/2009&152/2009 Page No.1 of 3 impugned order passed by the Tribunal in view of the fact that the Tribunal

has set aside the order of the Commissioner of Income-Tax (Appeals) and

restored the order of the Assessing Officer who disallowed the claim of

interest payment made by the assessee to the bank in respect of the

borrowed funds on the ground that the said borrowed funds were diverted to

sister concerns.

2. The Assessing Officer as well as the Income-tax Appellate

Tribunal came to the definite conclusion that there was a diversion of funds

which had been borrowed by the assessee from banks to the sister concerns,

namely, Govan Industrial Corporation and Anilmaa Association, which

were not covered within the scope of the commercial expediency or

business exigencies of the assessee. A finding was also recorded that the

Assessing Officer had examined not only the books of the assessee, but also

the assessment orders and other records of the sister concerns, namely,

Govan Industrial Corporation and Anilmaa Association. After such an

examination, the Assessing Officer had come to a definite finding that the

group concerns had not utilized the funds for the purposes of their business,

but had instead diverted the same further to individuals / family members of

the group.

3. We have seen the impugned order as well as have heard the

counsel for the parties and are of the view that the findings returned by the

Tribunal are in the nature of pure findings of fact. There is no substantial

ITA Nos.1035/2009,147/2009&152/2009 Page No.2 of 3 question of law which arises for our consideration. Consequently, we

refrain from admitting these appeals. The appeals are dismissed.

BADAR DURREZ AHMED, J

SIDDHARTH MRIDUL, J JANUARY 18, 2010 dutt

ITA Nos.1035/2009,147/2009&152/2009 Page No.3 of 3