The Peerless Gen. fin. & Inv. Co. Ltd., Kolkata V. DCIT, Circle-3(1), Kolkata, Kolkata

ITA 1195/KOL/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3940 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 25-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D A J SAWKMIE
• Assessee Lawyers: S K TULSIYAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (A), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT & SHRI S.S. VISWANETHRA RAVI, JM] I.T.A. NO. 1195/KOL/2017 ASSESSMENT YEAR: 2001-02 THE PEERLESS GENERAL FINANCE & INVESTMENT CO. LTD. .......................................APPELLANT 3, ESPLANADE EAST, KOLKATA 700 069. [PAN: AABCT 3043 L] DCIT CIRCLE 3(1) KOLKATA...................................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI S.K. TULSIYAN, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI D.A.J. SAWKMIE, CIT DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 03, 2018 DATE OF PRONOUNCING THE ORDER : OCTOBER 31, 2018 ORDER PER P.M. JAGTAP, VICE PRESIDENT THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 17, KOLKATA DATED 02.02.2017 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DISALLOWANCE OF ASSESSEES CLAIM FOR GRANT OF INTEREST ON UNPAID INTEREST. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE SOLITARY ISSUE INVOLVED IN THIS APPEAL OF THE ASSESSEE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS TRIBUNAL ON ASSESSEES OWN CASE FOR A.Y. 2002-03 RENDERED VIDE ITS ORDER DATED 02.06.2017 PASSED IN ITA NO. 50/K/2009. THE LEARNED DR, ON THE OTHER HAND, HAS POINTED OUT THAT THE ACTION OF THE A.O. IN DISALLOWING ASSESSEES CLAIM FOR INTEREST ON 2 I.T.A. NO. 1195/KOL/2017 ASSESSMENT YEAR: 2001-02 THE PEERLESS GEN. FIN. & INV. CO. LTD. UNPAID INTEREST IS UPHELD BY THE LD. CIT(A) VIDE HIS IMPUGNED ORDER BY RELYING ON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF GUJARAT FLUORO CHEMICALS 358 ITR 291 WHEREIN IT WAS HELD THAT THE ASSESSEE WOULD BE ENTITLED ONLY FOR INTEREST AS PROVIDED FOR UNDER THE STATUTE AND NO OTHER INTEREST ON SUCH STATUTORY INTEREST. IN THIS REGARD, THE LEARNED COUNSEL FOR THE ASSESSEE HAS POINTED OUT FROM THE RELEVANT PORTION OF THE TRIBUNALS ORDER DATED 02.06.2017 THAT THE SAID DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF GUJARAT FLUORO CHEMICALS (SUPRA) HAS ALREADY BEEN TAKEN INTO CONSIDERATION BY THE TRIBUNAL AND AFTER TAKING THE SAME INTO CONSIDERATION, A SIMILAR ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE. A PERUSAL OF THE RELEVANT PORTION OF THE TRIBUNALS ORDER AS POINTED OUT BY THE LEARNED COUNSEL FOR THE ASSESSEE CLEARLY SHOWS THAT ALL THE RELEVANT CASE LAWS CITED ON BEHALF OF THE DEPARTMENT INCLUDING THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF GUJARAT FLUORO CHEMICALS (SUPRA) AS WELL AS THE JUDICIAL PRONOUNCEMENTS RELIED UPON ON BEHALF OF THE ASSESSEE WERE TAKEN INTO CONSIDERATION BY THE TRIBUNAL AND AFTER TAKING THE SAME INTO CONSIDERATION, IT WAS FINALLY CONCLUDED BY THE TRIBUNAL THAT THE ASSESSEE WAS ENTITLED FOR INTEREST ON UNPAID INTEREST. IN OUR OPINION, THE SOLITARY ISSUE INVOLVED IN THIS APPEAL OF THE ASSESSEE RELATING TO ITS CLAIM FOR INTEREST ON UNPAID INTEREST THUS IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS TRIBUNAL RENDERED IN ASSESSEES OWN CASE FOR A.Y. 2002-03 VIDE ITS ORDER DATED 02.06.2017 (SUPRA) AND RESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE A.O. TO GRANT INTEREST TO THE ASSESSEE ON UNPAID INTEREST. 3 I.T.A. NO. 1195/KOL/2017 ASSESSMENT YEAR: 2001-02 THE PEERLESS GEN. FIN. & INV. CO. LTD. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2018. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT DATED: 31/10/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. THE PEERLESS GENERAL FINANCE & INVESTMENT CO. LTD., 3, ESPLANADE EAST, KOLKATA 700 069. 2. DCIT, CIRCLE 3(1), P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA