THE ACIT-3(1), Indore V. M/S. MADHYA PRADESH FINANCIAL CORPORATION, Indore

ITA 119/IND/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4309 (ITAT-INDORE)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 15-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VARSHNEY
• Assessee Lawyers: N D PATWA
• Keywords: Rectification of order
• Section: 154

Judgement Text

ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JM & SHRI O.P. MEENA, AM ITA NOS.117 TO 119/IND/2016 A.YS.2008-09 TO 2010-11 ACIT 3(1) INDORE ::: APPELLANT VS M/S M.P. FINANCIAL CORPORATION INDORE PAN AADCM 6480C ::: RESPONDENT APPELLANT BY SHRI RAJEEV VARSHNEY RESPONDENT BY SHRI ASHISH GOYAL & SHRI N.D. PATWA DATE OF HEARING 1.8.2016 DATE OF PRONOUNCEMENT 1 6 .8.2016 O R D E R THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINST THE CONSOLIDATED ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 18.11.2015. ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 2 2. BRIEFLY STATED, THE ASSESSEE PAID TAX OF RS.18,23,5 20/- FOR THE ASSESSMENT YEAR 2008-09, RS.21,04,331/- FOR T HE ASSESSMENT YEAR 2009-10 AND RS.27,22,318/- FOR THE ASSESSMENT YEAR 2010-11 UNDER THE MAT PROVISIONS. THEREAFTER, THE ASSESSEE MOVED A RECTIFICATION APPLICATIO N U/S 154 OF THE ACT TO RECTIFY THE ASSESSMENT ON THE POINT OF NON-APPLICABILITY OF MAT PROVISIONS. THE ASSESSING OFFICER PASSED THE RECTIFICATION ORDER U/S 154 BY REJECTING T HE APPLICATION OF THE ASSESSEE. FELT AGGRIEVED, THE ASSESS EE FILED APPEALS BEFORE THE LEARNED CIT(A) AND THE LEARNE D CIT(A) ALLOWED THE APPEALS OF THE ASSESSEE AGAINST WHICH THE REVENUE IS IN APPEALS BEFORE THE TRIBUNAL. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER OF THE LEARNED CIT(A) WHEREAS THE LEARNED DR SUPPORTED THE ORDER PASSED BY THE ASSESSIN G OFFICER U/S 154 OF THE ACT. ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 3 4. WE HAVE HEARD BOTH THE SIDES. DURING HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO THE JUDGMENT OF THE HON'BLE CALCUTTA HIGH COURTR IN THE C ASE OF WEST BENGAL STATE WAREHOUSING CORPORATION VS. CIT; 27 TAXMAN 589 (CAL) WHEREIN IT WAS HELD THAT SECTION 154 O F THE INCOME TAX ACT, 1961 RECTIFICATION OF MISTAKE APPARENT FROM RECORD ASSESSEE, A STATE WAREHOUSING CORPORATION, DID NOT MAKE CLAIM FOR EXEMPTION OF ITS INCOME DERIVED FROM WAREHOUSING UNDER SECTION 83 (NOW SECTI ON 10(29) BEFORE ITO OR AAC LATER IT MOVED AN APPLICATI ON UNDER SECTION 154 FOR CLAIMING SUCH EXEMPTION ALL MATERIAL FOR PURPOSES OF DETERMINING THE QUESTION WAS BEFORE ITO AND IN SUBSEQUENT ASSESSMENT YEAR ASSESSEE HAD BEEN ALLOWED EXEMPTION WHETHER ASSESSEES ASSESSMENT HAD TO BE RECTIFIED UNDER SECTION 154 TO ALLOW IT EXEMPTION CLAIMED HELD, ON FACTS, YES. ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 4 5. SIMILARLY, IN THE INSTANT CASE, WHILE FILING THE RE TURN OF INCOME, THE ASSESSEE DID NOT CLAIM THAT THE ASSESSEE IS A STATE FINANCIAL CORPORATION AND THE ASSESSEE HAS FILED IT S RETURN UNDER THE IMPRESSION THAT MAT PROVISION IS APPLICABLE AND PAID THE MAT ON IT AFTER IT HAS COME TO T HE KNOWLEDGE OF THE ASSESSEE THAT IN THE YEARS UNDER CONSIDERATION I.E. ASSESSMENT YEARS 2008-09 TO 2010-11 , THE ASSESSEE IS NOT LIABLE FOR MAT AND THE MAT IS APPLICABLE FROM THE ASSESSMENT YEAR 2013-14 I.E. SUB- SECTION (2_ OF SECTION 155JB(1). THEREFORE, THE ASSE SSEE HAS MOVED THIS APPLICATION FOR RECTIFYING THE ORDER BECAUS E THE ASSESSEE IS NOT COVERED UNDER MAT PROVISIONS U/S 155 JB. THE ASSESSING OFFICER DID NOT ALLOW THE APPLICATION AND THE LEARNED CIT(A) HAS ALLOWED IT. MOREOVER, THERE ARE VARIO US DECISIONS INCLUDING THE DECISION OF THE HON'BLE KER ALA HIGH COURT IN 196 TAXMAN.1 WHEREIN IT IS HELD THAT MAT IS APPLICABLE FROM THE ASSESSMENT YEAR 2013-14. THEREFOR E, ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 5 THE LEARNED CIT(A) IS FULLY JUSTIFIED IN ALLOWING THE APPEALS OF THE ASSESSEE. WE, THEREFORE, FIND NO MERIT IN THE SE APPEALS OF THE REVENUE AND DISMISS THE SAME. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE STAND DISMISSED. PRONOUNCED IN OPEN COURT ON 16 AUGUST, 2016 SD/- SD/- (O.P. MEENA) (D.T. G ARASIA) ACCOUNTANTMEMBER JUDICIAL MEMB ER 16 TH AUGUST, 2016 DN/- ACIT VS. M.P. FINANCIAL CORPORATION ITA NOS.117 TO 119/IND/2016 6