Agarwal Foundries (P) Ltd., Sec'bad, Secunderabad V. ACIT, Circle-16(2), Hyd, Hyderabad

ITA 1008/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6463 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 29-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 04-08-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: KHUSHBHOOBASHANI
• Section: 143(3); 234B; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1008/HYD/2015 ASSESSMENT YEAR: 2008-09 ` AGARWAL FOUNDRIES (P) LTD., SECUNDERABAD. PAN AA1CS 4832 K VS. ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 16(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. KHUSHBHOOBASHANI REVENUE BY : SHRI M. SITARAM DATE OF HEARING 29-04-2016 DATE OF PRONOUNCEMENT 10-06-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) - 4 , HYDERABAD FOR AY 2008-09. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF HIGH QU ALITY CASTINGS. IT FILED ITS RETURN OF INCOME DECLARING AN AMOUNT OF R S. 1,80,31,827/-. THE CASE WAS SELECTED FOR SCRUTINY AND ACCORDINGLY, NOTICES U/S 143(2) & 141(1) WERE ISSUED ON THE ASSESSEE. THE AS SESSEE AFTER PRODUCING THE RELEVANT RECORDS AND BOOKS OF ACCOUNT BEFORE THE AO, THE AO HAD PASSED THE ASSESSMENT ORDER ON 27/12/201 0 U/S 143(3) OF THE ACT. 2 ITA NO. 1008/H/15 AGARWAL FOUNDRIES (P) LTD. 2.1 AFTER GOING THROUGH THE ASSESSMENT ORDER, THE A SSESSEE CONTENDED THAT THE INTEREST OF RS. 2,20,944/- U/S 2 34B WAS WRONGLY CHARGED BY THE AO AND MADE A RECTIFICATION PETITION U/S 154 BEFORE THE AO. THE AO CALCULATED THE RELEVANT CALCULATION PART OF CHARGING OF INTEREST U/S 234B AND ARRIVED AT RS. 2,20,944/- AND CONCLUDED THAT THERE WAS NO MISTAKE APPARENT FROM THE RECORD. 3. AGGRIEVED WITH THE ORDER OF THE AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO HAD CONFIRMED THE ORD ER OF THE AO BY HOLDING AS UNDER: 4. THE ORDER OF THE AO U/S 154 AND THE SUBMISSIONS OF THE APPELLANT ARE CONSIDERED. THE WHOLE QUESTION REVOL VES AROUND THE CALCULATION OF INTEREST UPTO DATE OF PAYMENT OF SELF ASSESSMENT U/S 140A. THE SECTION 140A CLEARLY LAYS DOWN THAT THE PAYMENT MADE IS FIRST TO BE ADJUSTED AGAINST IN TEREST PAYABLE UPTO DATE OF PAYMENT AND BALANCE TOWARDS THE TAX PA YABLE. THE AO HAS RIGHTLY CALCULATED THE INTEREST ACCORDINGLY. THE ACTION OF THE AO IS CONFIRMED. THE GROUNDS OF APPEAL OF THE A PPELLANT ARE REJECTED. 4. AGGRIEVED WITH THE ABOVE ORDER OF THE CIT(A), TH E ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS O F APPEAL: 1. THE CIT(A) HYDERABAD HAS WRONGLY UPHELD THE INTE REST CALCULATION U/S 234B MADE BY THE AO FOR THE AMOUNT OF RS. 2,20,944/-. 5. LD. AR FILED THE CALCULATION OF 234B AND SUBMITT ED THAT THE INTEREST CALCULATION RELATING TO THE PERIOD 10/2008 TO 12/2010 WAS CALCULATED INCORRECTLY AS BELOW: PARTICULARS RS. RS. TAX AMOUNT AFTER DEDUCTING MAT CREDIT, TDS, ADVANCE TAX (AS PER ASSESSMENT ORDER) ADD: INTEREST U/S 2324B I) INTEREST FOR 6 MONTHS UPTO THE DATE OF PAYMENT OF SELF ASSESSMENT TAX ON RS. 22,14,596/- @ 1% (I.E. FROM APRIL 2008 TO SEPTEMBER 2008) II) INTEREST FOR 27 MONTHS @ 1% UPTO 1,32,876 22,14,596 3 ITA NO. 1008/H/15 AGARWAL FOUNDRIES (P) LTD. THE DATE OF ASSESSMENT ORDER U/S 143(3) ON THE REMAINING AMOUNT OF TAX PAYABLE (I.E. 22,14,596- 21,92,568 = RS. 22,028) ADD: INTEREST U/S 234C AS PER ASSESSMENT ORDER. LESS: SELF ASSESSMENT TAX PAID U/S 140A AS PER ASSESSMENT ORDER 5948 1,38,823 1,82,213 25,35,632 21,92,568 3,43,064 6. LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITI ES. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIAL FACTS ON RECORD. FOR THE SAKE OF CLARI TY, WE EXPLAIN THE INTEREST CALCULATION OF SECTION 234B AS BELOW: TOTAL TAX DUE AS PER ASSESSMENT ORDER LESS: TDS & ADVANCE TAX PAID 63,09,713 40,95,117 TAX DUE (A) 22,14,596 ASSESSEE PAID TAX U/S 140A AS BELOW: TAX RS. 18,88,321 INTEREST U/S 234B RS. 1,22,034 U/S 234C RS. 1,82,213 RS. 21,92,568 18,88,321 NET TAX DUE ON 10/20 08 (B) 3,26,275 CALCULATION OF INTEREST U/S 234B A) SHORT INTEREST PAYMENT FOR THE PERIOD 01/04/2008 TO 30/09/2008 (I.E. SIX MONTHS) B) SHORT INTEREST PAYMENT FOR THE PERIOD 10/2008 TO 12/2010 (I.E. 27 MONTHS) RS. 3,26,275 @ 27% 1,32,876 88,094 4 ITA NO. 1008/H/15 AGARWAL FOUNDRIES (P) LTD. FROM THE ABOVE CALCULATION, IT IS CLEAR THAT THE CA LCULATION ARRIVED AT BY THE AO IS IN ORDER. IT CAN BE NOTICED FROM THE C ALCULATION ABOVE THAT THE ASSESSEE HAS TO ADOPT THE VALUE ARRIVED AS NET TAX DUE AS ON 01/10/2008 (REFER B ABOVE), BUT, BY MISTAKE ADOPT ED A VALUE OF RS. 22,028 (22,14,596 21,92,568), WHICH IS NOT THE CO RRECT NET TAX DUE ARRIVED BY THE ASSESSEE. HENCE, THE APPEAL OF THE ASSESSEE IS ACCORDINGLY DISMISSED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 10 TH JUNE, 2016 SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHM AN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 10 TH JUNE, 2016 KV COPY TO:- 1) M/S AGARWAL FOUNDRIES (P) LTD., 5-4-83, RAMA TOW ERS, 2 ND FLOOR, TSK CHAMBERS, MG ROAD, SECUNDERABAD. 2) ACIT, CIRCLE 16(2), HYDERABAD. 3) CIT(A) - 8, HYDERABAD 4) PR. CIT 4, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.