Lalit Kumar Gyanchand HUF, Nagpur V. Income Tax Officer,ward 6(2), Nagpur

ITA 107/NAG/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3158 (ITAT-NAGPUR)
• Duration Of Justice: 7 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 28-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHARDHA NICHHAL
• Assessee Lawyers: M MANI
• Section: 244A; 54; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR E-BENCH, NAGPUR (THROUGH VIDEO CONFERENCE AT MUMBAI) . . , . / , . . BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER /AND SHRI RAJENDRA, ACCOUNTANT MEMBER . / ITA NO. 107/NAG/2012 BLOCK PERIOD 01-04-1990 TO 16-02-2001 LALIT KUMAR GYANCHAND (HUF), PROP: KUMAR MARKETING CO., MASKASATH, ITWARI, NAGPUR-440 002. PAN: AAAHL 2628 H VS. INCOME TAX OFFICER, WARD 6(2), AAYAKAR BHAVAN, NAGPUR. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI M. MANI / RESPONDENT BY : SMT. SHARDHA NICHHAL ! '#$ / DATE OF HEARING : 29-01-2013 %&' '#$ / DATE OF PRONOUNCEMENT : 06-02-2013 () / O R D E R PER RAJENDRA, AM ASSESSEE HAS FILED SOLE EFFECTIVE GROUND OF APPEAL ABOUT INTEREST CALCULATION AS PER THE PROVISIONS OF SECTION 244A OF THE INCOME TAX ACT 1961, (ACT) AGAINST ORDER DT. 30-12-2011 OF CIT(A)-II, NAGPUR. 2. BRIEF FACTS OF THE CASE: IN THIS CASE, ASSESSMENT U/S. 158BC OF THE ACT FOR THE BLOCK PERIOD 01-04-1990 TO 16-02-2001 WAS COMPLETED ON 28-02-2003 DETERMINI NG TOTAL INCOME AT RS.63,000/-. SUBSEQUENTLY, AN ORDER U/S. 154 OF THE ACT WAS PASS ED ON 05-10-2009, WHEREBY A REFUND OF RS. 53,846/- WAS ISSUED TO THE ASSESSEE. 3. THE ASSESSEE VIDE APPLICATION DT. 22-10-2009 U/S. 1 54 OF THE ACT HAD SOUGHT A FURTHER REFUND OF RS. 1,50,581/-. THE APPLICATION AS WELL AS THE CASE RECORD OF THE ASSESSEE WERE EXAMINED IN DETAIL AND IT WAS OBSERVE D BY THE ASSESSING OFFICER (AO) THAT THE ASSESSEE HAD CLAIMED INTEREST U/S. 244A ON INTEREST U/S. 132B(4)(B) OF THE ACT WHICH WAS NOT TENABLE. AO HELD THAT THE AMENDMENTS SOUGHT FOR BY THE ASSESSEE WERE ITA NO. 107/NAG/2012 LALIT KUMAR GYANCHAND (HUF) 2 OUTSIDE THE SCOPE FOR AMENDMENT U/S. 154 OF THE ACT 1961. HE REJECTED THE APPLICATION FILED BY THE ASSESSEE VIDE HIS ORDER DT . 16-02-2010. 4. ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPE LLATE AUTHORITY (FAA). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, HE HELD THAT THE HEARING OF APPEAL OF THE ASSESSEE, THE REFUNDS OF SEIZED AMOUNT AND P ART OF INTEREST HAD BEEN RECEIVED BY THE APPELLANT, THAT THE INTEREST ON THE SEIZED AMOU NT WITHHELD BY THE DEPARTMENT HAD NOT BEEN PAID. HE FURTHER REFERRED TO THE DETAILS OF PAYMENT RECEIVED AND INTEREST DUE THAT WAS SUBMITTED BY THE APPELLANT. FINALLY, HE H ELD THAT AS PER LAW U/S. 132B(4) READ WITH SECTION 244A INTEREST BECAME DUE ON EXCESS RET AINED BY THE DEPARTMENT. HE DIRECTED THE AO TO GIVE REFUND AFTER VERIFICATION O F PAYMENTS MADE. 5. BEFORE US, DEPARTMENTAL REPRESENTATIVE (DR) RELIED UPON THE ORDER OF THE AO AND FAA. AUTHORISED REPRESENTATIVE (AR) SUBMITTED THAT FAA SHOULD HAVE ALLOWED THE INTEREST CLAIMED BY THE ASSESSEE, THAT HE SHOUL D NOT HAVE DIRECTED THE AO TO RE-CALCULATE THE INTEREST. 6. AFTER CONSIDERING THE SUBMISSIONS OF RIVAL PARTIES , WE ARE OF THE OPINION THAT ORDER OF THE FAA DOES NOT SUFFER FROM ANY ILLEGALIT Y OR INFIRMITY AND HENCE, DOES NOT NEED ANY INTERFERENCE FROM OUR SIDE. INTEREST BECO MES DUE TO AN ASSESSEE ON TAXES PAID IN CERTAIN CIRCUMSTANCES ONLY. AS A MATTER OF RIGHT, NEITHER THE STATE NOR THE TAX- PAYER CAN DEMAND INTEREST. FAA HAS DIRECTED THE AO TO RECALCULATE THE INTEREST PAYABLE TO THE ASSESSEE IN LIGHT OF THE TAXES PAID. IN OUR OPINION, HIS DECISION IS FAIR AND RATIONAL. UPHOLDING HIS ORDER, WE DECIDE THE E FFECTIVE GROUND OF APPEAL (GROUND NO.1) FILED BY THE ASSESSEE AGAINST HIM. AS A RESULT, APPEAL FILED BY THE ASSESSEE STANDS DI SMISSED. * +, - *' / (01 ! +23 ' 45. ORDER PRONOUNCED BY E-BENCH AT MUMBAI ON THIS 6 TH DAY OF FEBRUARY, 2013 +7! 0,' ! - 789 / 6 TH FEBRUARY, 2013 & () %&:'' ; . SD/- SD/- ( . . / R.K. GUPTA ) ( / RAJENDRA ) (, / JUDICIAL MEMBER $ (, / ACCOUNTANT MEMBER +7! MUMBAI, ;( DATE: 6 TH FEBRUARY, 2013 TNMM ITA NO. 107/NAG/2012 LALIT KUMAR GYANCHAND (HUF) 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. THE CONCERNED CIT (A) 4. THE CONCERNED CIT 5. DR, ITAT, NAGPUR 6. GUARD FILE :' ' //TRUE COPY// BY ORDER, ASST. REGISTRAR, ITAT