2017 (12) TMI 1006

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....ently, vide MA Nos. 111, 112 & 113/Hyd/2013 dated 30.07.2015, the limited issue involved in para 102 of the ITAT order has been recalled. Consequent thereto, these appeals were fixed for hearing before us. On going through the order of the Tribunal in MA Nos. 111,112 & 113/Hyd/2013, we find that 'only the issue of interest payable by the assessee to M/s Intra Port India Ltd., during the relevant assessment years' is involved in para 102 of the ITAT order dated 03-08-2012. 2. Brief facts relating to this issue are that, the assessee is the proprietor of M/s Ram Lakshman Marketing Agencies. This concern entered into a marketing agreement dated 28.05.1999 with M/s Intra Port India Ltd., for sale of their product Snow Budge Beer. As per the ....

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....s undisclosed income of the block period. On appeal by the assessee, the CIT (A), in the block assessment order, deleted the addition by holding that it should be considered only in the regular assessments. In the regular assessment for the A.Ys 2001-02 to 2004-05, the A.O disallowed the claim of interest for the respective assessment years and the assessee's appeal before the CIT (A) was also dismissed. Aggrieved, the assessee is in appeal before us. 3. The Ld. Counsel for the assessee submitted that, the A.O has erroneously recorded that M/s Intra Port India Ltd., was taken over by the assessee's group on 17.11.2001 and on that premise, has made the disallowance of the interest payable to M/s Intra Port India Ltd. He submitted that the....

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....tra Port India Ltd., was disallowed by the A.O for the A.Ys 2001-02 to 2004-05. All these A.Ys are prior to the company being taken over by the asseessee's group. Therefore, the A.O is not right in holding that in order to set off the loss of M/s Intra Port India Ltd., the interest is being claimed to have been payable to M/s Intra Port India ltd. Both the authorities below have proceeded on the premise that M/s Intra Port India Ltd., has been taken over by the assessee group and that it is thereafter, that the claim is being made. A search has taken place in the case of the assessee group on 03.01.2002, whereas M/s Intra Port India Ltd., is allegedly taken over by the assessee group only from 24.04.2004. Therefore, there cannot be any poss....