ACIT, CHENNAI V. Mohan Breweries & Distilleries Ltd., CHENNAI

ITA 1328/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6474 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 25-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: R VIJAYARAGHAVAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . . . , . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1328/MDS/2017 ( / ASSESSMENT YEAR: 2001-02) THE ACIT, CENTRAL CIRCLE 2(1), CHENNAI 34. VS M/S. MOHAN BREWERIES & DISTILLERIES LTD., RAYALA TOWERS, 2 ND FLOOR, 158, ANNA SALAI, CHENNAI 600 002. PAN: AAAVM2415L ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI AR.V. SREENIVASAN, JCIT /RESPONDENT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE /DATE OF HEARING : 01.08.2017 /DATE OF PRONOUNCEMENT : 01.08.2017 / O R D E R PER A. MOHAN ALANKAMONY, AM: THIS APPEAL BY THE REVENUE ISDIRECTED AGAINST THE O RDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-8, CHENNAIDATED21.03.2017 IN ITA NO.19/2009-10 FOR THE ASSESSMENT YEAR 2001-02 PASSED U/S.250(6) R.W.S.143 (3) OF THE ACT. 2. THERE IS A DELAY OF 2 DAYS IN FILING THE APPEAL BY THE REVENUE. THE LD.DCIT HAS FURNISHED AN AFFIDAVIT BE FORE US 2 ITA NO.1328/MDS/2017 STATING THAT THE DELAY HAD OCCURRED DUE TO MISPLACE MENT OF FILE AND DUE TO THE TIME TAKEN FOR TRACING THE FILE. IT WAS THEREFORE PLEADED THAT THE SHORT DELAY IN FILING THE APPEAL M AY BE CONDONED. THE LD.AR DID NOT SERIOUSLY RAISE ANY OB JECTION AGAINST THE SUBMISSION OF THE LD.DR. AFTER HEARING BOTH SIDES, THOUGH WE DO NOT APPRECIATE THE LETHARGIC ATTITUDE OF THE REVENUE, IN THE INTEREST OF JUSTICE, WE HEREBY COND ONE THE SHORT DELAY IN FILING THE APPEAL BY THE REVENUE AND PROCE ED TO HEAR THE APPEAL ON MERITS. 3. THE REVENUE HAS RAISED SEVERAL GROUNDS IN ITS AP PEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THEREVENUE IS AGGRIEVED BY THE ORDER OF THE LD.CIT(A) FOR RE-COMPUTING THE INT EREST PAYABLE U/S.234B OF THE ACT. 4. AT THE OUTSET THE LD.AR SUBMITTED THAT IN THE CA SE OF THE ASSESSEE INTEREST U/S.234B OF THE ACT IS NOT LEVIAB LE BECAUSE THE LD.AO U/S.154 OF THE ACT HAS PASSED ORDER DATED 09. 04.2007 FOR THE RELEVANT ASSESSMENT YEAR ASSESSING THE INCOME O F THE ASSESSEE AS NIL AFTER GRANTING THE BENEFIT OF BRO UGHT FORWARD LOSSES TO THE TUNE OF RS.16,26,61,756/-. FURTHER, THE LD.AR SUBMITTED THAT THE TRIBUNAL VIDE ITS ORDER 08.02.20 08 IN ITA 3 ITA NO.1328/MDS/2017 NO.1360 & 1361/MDS/2007 FOR THE ASSESSMENT YEAR 200 1-02 & 2003-04 HAD HELD THAT IF THE DEMAND IS NIL, THE QUE STION OF LEVY OF INTEREST U/S.234B OF THE ACT, DOES NOT ARISE. THE LD.AR THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED B ACK TO THE FILE OF LD.AO FOR VERIFYING ALL THESE FACTS. THE LD.DR COULD NOT SUCCESSFULLY CONFRONT TO THE SUBMISSION OF THE LD.A R. 5. CONSIDERING THE FACTS NARRATED BY THE LD.AR, WE ARE OF THE CONSIDERED VIEW THAT THE ENTIRE ISSUE WITH RESPECT TO LEVY OF INTEREST U/S.234B OF THE ACT, REQUIRES TO BE VERIFI ED AND RE- EXAMINED IN THE LIGHT OF THE ORDER OF THE TRIBUNAL AND THE ORDER OF THE LD.AO U/S.154 OF THE ACT, AS POINTED OUT BY THE LD.AR HEREIN ABOVE. THEREFORE, WE HEREBY REMIT BACK THE MATTER TO THE FILE OF LD.AO FOR DE-NOVA CONSIDERATION. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 01 ST AUGUST,2017. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER 4 ITA NO.1328/MDS/2017 !' /CHENNAI, #$ /DATED 01 ST AUGUST, 2017 JR $% &'(' /COPY TO: 1. /APPELLANT2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. '-. / /DR 6. .01 /GF