DCIT, CIR-11, KOLKATA, Kolkata V. M/s Indian Explosives Ltd., Kolkata

ITA 1149/KOL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1623 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 22-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ZAFRAUL HAQUE TANVEE R JCIT LD
• Assessee Lawyers: SOURAVE KEDIA LD

Judgement Text

1 ITA NO. 1149/KOL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOL KATA BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUD ICIAL MEMBER I.T.A NO. 1149/KOL /2014 A.Y: 2010-1 1 D.C.I.T, CIR-11, KOLKATA VS. M/S. INDIAN EXPLOSIV ES LTD PAN:AAACI6548N [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI ZAFRAUL HAQUE TANVEE R, JCIT, LD.SR.DR FOR THE RESPONDENT : SHRI SOURAVE KEDIA, LD.AR DATE OF HEARING : 13-06-2017 DATE OF PRONOUNCEMENT : 23-08-2017 ORDER SHRI S.S.VISWANETHRA RAVI, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-XXX, KOLKATA D T. 01-01-2014 FOR THE A.Y 2010-11, WHEREIN HE RESTRICTED THE INTE REST CHARGED U/S. 234C OF THE ACT. 2. THE LD. DR SUBMITS THAT THE APPEAL WAS FILED WIT H THE DELAY OF 5 DAYS AND THE SAID DELAY WAS CAUSED DUE TO ADMINISTR ATIVE REASONS. THOUGH THE APPEAL WAS SIGNED BY CIT FOR FILING OF APPEAL ON 15-05- 2014, BUT THE CONCERNED CLERK WAS ABSENT DUE TO HI S ILLNESS FROM 19- 05-2014 TO 21-05-2014 AND AS SUCH THE APPEAL WAS FI LED ON 22-05- 2014 AND PRAYED TO CONDONE SUCH DELAY. AFTER HEARIN G BOTH THE PARTIES, WE FIND THAT THE REASONS STATED IN THE PET ITION TO CONDONE THE DELAY ARE BEYOND THE CONTROL OF THE APPELLANT REVEN UE. THEREFORE, THE DELAY OF 5 DAYS FOR FILING THE APPEAL BY THE REVENU E IS CONDONED AND WE PROCEED TO HEAR THE APPEAL AND DISPOSE OFF THE S AME ON MERITS AND MATERIAL AVAILABLE ON RECORD. 2 ITA NO. 1149/KOL/2014 3. THE ONLY ISSUE TO BE DECIDED IS AS TO WHETHER T HE CIT-A WAS JUSTIFIED IN CHARGING THE INTEREST U/S. 234C OF THE ACT FOR A PERIOD OF 1 MONTH AS AGAINST 3 MONTHS BY THE AO IN THE FACTS AN D CIRCUMSTANCES OF THE CASE. 4. THE LD.DR RELIED ON THE COMPUTATION PREPARED C HARGING ADDITIONAL INTEREST OF RS.17,40,003/- BY THE AO U/S . 234C OF THE ACT BY THE CENTRALIZED PROCESSING CENTER, BANGALORE VID E INTIMATION U/S. 143(1) OF THE ACT DT. 21-08-2012. 5. IN REPLY, BEFORE US THE LD.AR OF THE ASSESSEE R ELIED ON THE ORDER OF THE CIT-A IN RESTRICTING THE CHARGING OF I NTEREST U/S. 234C OF THE ACT FOR A PERIOD OF 1 MONTH AS AGAINST 3 MONTHS BY THE AO. 6. HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIA L ON RECORD. WE FIND THAT THE INTEREST U/S. 234C OF THE ACT WAS CHARGED AGAINST THE ASSESSEE FOR NOT DEPOSITING THE ADVANCE TAX WIT HIN TIME AS SPECIFIED IN SECTION 234C OF THE ACT. IT IS NOTICED THAT THE ASSESSEE MADE THE PAYMENTS ON 15-06-2009 FOR THE 1 ST QUARTER AND FOR THE 2 ND QUARTER ON 15-09-2009 DELAYED BY 1 DAY. BEFORE THE CIT-A THE ASSESSEE CONTENDED THAT THE DELAY OF 1 DAY FOR THE 1 ST QUARTER WAS AS ONE OF THE AUTHORIZED SIGNATORY WAS NOT AVAILABLE ON THE DUE DATE OF PAYMENT OF ADVANCE TAX. THEREFORE, ON IMMEDIATE SUC CEEDING DAY I.E 16-06-2009, ADVANCE TAX WAS PAID FOR THE 1 ST QUARTER OF ADVANCE TAX. FOR THE 2 ND QUARTER OF ADVANCE TAX, WHICH WAS DUE ON 15-09-200 9, DUE TO SEAMLESS OF INTERNET CONNECTIVITY THE ASSESS EE PAID ADVANCE TAX ON 16-09-2009. WE FIND THAT THE ASSESSEE IMMEDI ATELY ON SUCCEEDING DAY I.E. 16-06-200 AND 16-09-2009 THE AD VANCE TAX FOR THE 1 ST QUARTER AND 2 ND QUARTER WAS PAID. BEFORE THE CIT-A THE ASSESSEE RELIED ON THE DECISION OF THE HONBLE BOMB AY HIGH COURT IN THE CASE OF VIJAY OMPRAKASH BANSAL VS. CIT REPORTED IN (2002) 257 ITR 649(BOM.) IN SUPPORT OF THE CONTENTION. HOWEVER , THE CIT-A RELIED ON THE ORDERS OF ITAT KOLKATA/BOMBAY IN THE CASES OF VESUVIUS INDIA LTD VS. ACIT (2008) 116 TTJ 393 (KOL) AND PAN THER INVESTRADE 3 ITA NO. 1149/KOL/2014 LTD VS. DCIT REPORTED IN (2007) 160 TAXMANN 203(BO M) AND DIRECTED THE AO TO CHARGE INTEREST U/S. 234C FOR A PERIOD OF 1 MONTH AND NOT FOR THE ENTIRE QUARTER BY STATING AS UNDER: - 1.2 DECISION : THE APPELLANT SEEKS TO GET THE COND ONATION FROM CHARGING OF INTEREST U/S. 234C FOR THE ENTIRE PERIOD OF 3 MONTHS BY RELY ING ON THE DECISION IN THE CASE OF VIJAY OMPRAKASH BANSAL VS. CIT (2002) 257 ITR 649(BOM). T HERE IS DEFAULT OF 1 DAY IN PAYMENT OF 1 ST AND 2 ND INSTALMENT OF ADVANCE-TAX. AS PER THE PRIVISON OF SECTION 234C THERE IS NO CONSIDERATION FOR GENUINE OR UNAVOIDAB LE REASONS FOR MAKING PAYMENTS ON THE IMMEDIATE SUCCEEDING DAY OR LATER FOR VARIOUS I NSTALMENTS OF ADVANCE-TAX. THE APPELLANT HAS FURTHER RELIED ON THE DECISIONS O F HONBLE KOLKATA TRIBUNAL IN THE CASE OF VESUVIUS INDIA LTD VS. ACIT (2008) 116 TTJ 393 (KOL), WHEREIN THE TRIBUNAL HAS HELD THAT INTEREST U/S. 234C IS FOR PERIOD OF D EFAULT SUBJECTED TO A MAXIMUM PERIOD OF 3 MOTHS AND NOT COMPULSORILY A PERIOD OF 3 MONTH S. FURTHER, RELIANCE BY THE APPELLANT ON THE DECISION OF BOMBAY TRIBUNAL IN THE CASE OF P ANTHER INVESTRADE LTD VS. DY. CIT (2007) 160 TAXMANN 203 (BOM) HAS BEEN MADE WHEREIN IT HAS BEEN HELD THAT DEFAULT OF A DAY SHOULD BE CONVERTED INTO A DEFAULT OF 1 MONTH . CONSIDERING THE DECISIONS NOTED ABOVE, I DIRECT THE AO TO CHARGE INTEREST U/S. 234C FOR A PERIOD OF 1 MONTH AND NOT FOR THE ENTIRE QUARTER. IN OTHER WORDS, FOR DEFAULTS IN RESPECT OF 1 ST AND 2 ND INSTALMENTS THE INTEREST BE CHARGED FOR 1 MONTH AS THE PAYMENTS WER E MADE BY WAY OF ADVANCE-TAX ON 16.06.2009 AND 16.09.2009, BEING IMMEDIATELY ON THE SUCCEEDING DATE OF THE RELEVANT DUE DATES. 7. IN VIEW OF ABOVE, WE ARE OF THE VIEW THAT THE CI T-A WAS RIGHT IN DIRECTING THE AO TO CHARGE INTEREST U/S. 234C OF TH E ACT FOR ONE MONTH ONLY. WE FIND NO INFIRMITY IN THE IMPUGNED OR DER OF THE CIT-A. WE UPHOLD THE SAME. THE GROUND RAISED BY THE REVENU E IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23-08-2017 SD/- SD/- J. SUDHAKAR REDDY S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23-08-2017 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/REVENUE: THE DCIT, CIR-11, AAYKAR BHAWAN, P-7 CHOWRINGHEE SQUARE, KOLKATA-69. 2 RESPONDENT/ASSESSEE: M/S. INDIAN EXPLOSIVES LTD 16C, 1 ST FLOOR, BEPIN PAUL ROAD, DESHOPRIYA PARK, KOLKATA-2 0. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR.PS/H.O.O ITAT KOLKATA 4 ITA NO. 1149/KOL/2014