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TMI Blog2021 (7) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the Revenue and in favour of the assessee. - T.C.A.No.769 of 2015 - - - Dated:- 1-7-2021 - Hon'ble Mr. Justice M.Duraiswamy And Hon'ble Mrs.Justice R.Hemalatha For the Appellant : Mr. M. Swaminathan Senior Standing Counsel. Assisted by Mrs. V. Pushpa, JSC For the Respondent : Mr.R.Venkat Narayanan JUDGMENT M. DURAISWAMY, J. Challenging the order passed in I.T.A.No.1610/Mds/2014 in respect of the Assessment Year 2007-2008 on the file of the Income Tax Appellate Tribunal, Chennai, B Bench (for brevity, the Tribunal), the Revenue has filed the above appeal. 2.1 The assessee company is a manufacturer and settler of white crystal sugar and its by-products. The assessee company filed its return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) and the Commissioner of Income Tax by order dated 07.02.2014 dismissed the appeal. Challenging the same, the assessee preferred an appeal before the Income Tax Appellate Tribunal, and the Tribunal, by its order dated 20.03.2015 allowed the appeal of the assessee. Aggrieved over the order passed by the Tribunal, the Revenue has filed the above appeal. 3. The above appeal was admitted on the following substantial questions of law: (I) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in holding that the expenditure was crystalized during the relevant previous year when the assessee hijmself has classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessing officer and the First Appellate Authority answered the issue against the assessee but the ITAT and the High Court has held that the principle underlying the exposition in Madras Industrial Investment Corporation Ltd. Vs. C.I.T.- 225 ITR 802 has no application to the fact situation of the present case, in view of the dictum in paragraphs 15 and 16 of the reported decision itself. The ITAT in its judgment had observed as follows: 31. We have heard the rival submissions. The assessee had made proposal to Industrial Development Bank of India (IDBI) for restructuring of debt IDBI vide letter dated 19th March 1995 agreed to, inter alia, reduce the rate of interest on rupee loan to 15% per annum, effective from 1st April, 1995 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason to take a different view in the matter. In view of the above, these appeals deserve to be dismissed and are dismissed accordingly. No order as to costs. Pending applications, if any, stand disposed of. 4.2 The learned Senior Standing Counsel submitted that in view of the ratio laid down by the Hon'ble Supreme Court of India, the questions of law has to be decided against the revenue and in favour of the assessee. 5 Mr.R.Venkat Narayanan, learned counsel appearing for the respondent-assessee submitted that in view of the Judgment of the Hon'ble Supreme Court of India the appeal may be dismissed. 6. Having regard to the submissions made by the learned counsel on either side, following the ratio laid down by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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