2019 (9) TMI 776 - HC - Income Tax

Addition on account of provision made for the short fall of Central Sales Tax payable - Tribunal restoring the deduction claimed on interest on account of excise duty paid during the year under assessment - HELD THAT - These questions are already decided by this Court in Sirsa Industries 1988 (11) TMI 38 - PUNJAB AND HARYANA HIGH COURT Addition on account of interest on F.D.Rs on accrual basis - HELD THAT - Question No. 2 is decided in the same terms of the order in M/S KISHAN CHAND AND CO. OIL INDS. LTD. VERSUS THE COMMISSIONER OF INCOME TAX (CENTRAL) , LUDHIANA 2019 (8) TMI 302 - PUNJAB AND HARYANA HIGH COURT

Summary

Issues:
1. Provision made for the short fall of Central Sales Tax payable
2. Addition of interest on F.D.Rs on accrual basis
3. Deduction claimed on interest on account of excise duty paid

Analysis:

1. Provision for Central Sales Tax: The first issue revolves around the addition of ?20,701 on account of provision made for the short fall of Central Sales Tax payable. The Tribunal upheld this addition based on a judgment of the Punjab and Haryana High Court. The appellant challenged this decision, citing a different judgment. However, both counsels agreed that the matter had already been decided by the High Court in another case. Consequently, the Court decided to dispose of this issue in line with the previous judgment, thereby affirming the Tribunal's decision.

2. Interest on F.D.Rs: The second issue concerns the addition of ?1,08,922 on account of interest on Fixed Deposit Receipts (F.D.Rs) on an accrual basis. The Tribunal relied on a decision of the Hon'ble Supreme Court in making this addition. The Court noted that a previous decision in a related case was applicable to this issue as well. Therefore, the Court decided to resolve this matter in accordance with the earlier judgment, upholding the Tribunal's decision on the addition of interest on F.D.Rs.

3. Deduction for Excise Duty: The final issue pertains to the deduction claimed on interest due to excise duty paid during the assessment year. The Tribunal had restored the deduction based on a judgment of the Punjab and Haryana High Court. The appellant did not contest this restoration, acknowledging that the issue had already been settled by the Court in a previous case. Consequently, the Court disposed of this matter in alignment with the earlier judgment, affirming the Tribunal's decision to allow the deduction for interest on excise duty paid.

In conclusion, the High Court resolved all three issues in this case by referencing and applying previous judgments where applicable, ultimately affirming the decisions made by the Tribunal.