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TMI Blog2023 (7) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... orrectly recorded in the tax audit report and the respondent/assessee made a course-correction only thereafter. What is not in dispute is that, at the relevant time, there were judgments of GUJARAT CYPROMET LTD. [ 2006 (8) TMI 664 - GUJARAT HIGH COURT] which took the view that favoured the respondent/assessee - it cannot be said that the enhancement of disallowance under Section 43B of the Act carried out by the respondent/assessee was not voluntarily. Decided in favour of assessee. - ITA 913/2019 - - - Dated:- 18-7-2023 - HON'BLE MR JUSTICE RAJIV SHAKDHER AND HON'BLE MR JUSTICE GIRISH KATHPALIA For the Appellant Through: Mr Aseem Chawla, Sr. Standing Counsel with Ms Pratishtha Chaudhary and Mr Aditya Gupta, Advocates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m its lenders i.e., financial institutions. (ii) CDR led to the working capital loan being converted into Working Capital Term Loan ( WCTL ) and the interest which had accrued on the loan was converted into Fund Interest Term Loan ( FITL ). (iii) In respect of the AY in issue, Return Of Income ( ROI ) was filed by the respondent/assessee on 30.11.2014. (iv) The original ROI was revised by the respondent/assessee on 01.09.2016 (online filing was made on 29.08.2016). (v) The revision in the ROI was triggered by a revision in the tax audit report, which was carried out on 26.08.2016. The tax audit report was revised by the Chartered Accountant of the respondent/assessee suo motu. (vi). The initial tax audit report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n place which took a view that favoured the respondent/assessee. 9.1. In this context, Mr Jhamba relied upon a short order dated 31.08.2006 passed in Tax Appeal No. 231 of 2006 titled Commissioner of Income Tax v. Gujarat Cypromet Ltd. It is pointed out that the question of law framed was decided in favour of the assessee in that case, based on an earlier judgment of the Gujarat High Court rendered in CIT v. Bhagwati Auto Gas Ltd. 261 ITR 481. 9.2 Mr Jhamba emphasized the fact that this aspect was noticed by the Tribunal and also the fact that judgment of the Gujarat High Court in Commissioner of Income Tax v. Gujarat Cypromet Ltd. was reversed by the Supreme Court only in February 2019 made it conclude the act of enhancement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. Furthermore, what is not in dispute is that, at the relevant time, there were judgments of the Gujarat High Court which took the view that favoured the respondent/assessee. For the sake of convenience, the order dated 31.08.2006 passed in Commissioner of Income Tax v. Gujarat Cypromet Ltd. is extracted hereafter: Heard learned counsel for the appellant. The following substantial question of law is proposed for admission of this appeal. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law and on facts in deleting the addition made u/s 43B of the Income Tax Act, 1961 on conversion of unpaid interest into a funded interest loan treating the same as interest payment? Admit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s placed before the Tribunal. 18. Likewise, the decision rendered by the Supreme Court in MAK Data (P) Ltd. v. Commissioner of Income-tax-II, (2013) 38 taxmann.com 448 (SC) is also distinguishable, as the documents comprising share application forms, bank statements and memorandum of association companies etcetera. emerged upon a survey being conducted under Section 133A of the Act. 19. In our view, the decisions in both Gangotri Textiles Ltd. rendered by the Madras High Court and in MAK Data (P) Ltd. by the Supreme Court were passed in settings which were different from one which arises in the present case. 20. Thus, for the forgoing reasons, we are not inclined to interdict the decision of the Tribunal. According to us, n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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