ADIT (IT) 1(1), MUMBAI V. ASIA TODAY LTD( NEW), MUMBAI

ITA 1379/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3613 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 27-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M MURALI
• Assessee Lawyers: KISHORE G UPTA
• Section: 244A; 154

Judgement Text

M/S ASIA TODAY LTD (NEW) ITA NO. 1379 /M U M /201 4 ITA NO. 1380/MUM/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A , MUMBAI , , BEFORE SHRI RAJENDRA , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMB ER ITA NO. : 1379 /MUM/20 1 4 (ASSESSMENT YEAR: 200 5 - 06 ) ITA NO. : 1380/MUM/2014 (ASSESSMENT YEAR: 2005 - 06 ) ADIT (IT) - 1(1), R. NO. 117, 1 ST FLOOR, SCINDIA HOUSE, N.M. ROAD, BALLARD ESTATE, MUMBAI - 400 038 VS M/S ASIA TODAY LTD (NEW), C/O. MBB & CO CAS, JOLLY BHAVAN NO.2, 1 ST FLOOR, 7, NEW MARINE LINES, CHURCHGATE, MUMBAI - 400 020 .: PAN: AAGCA 5649 G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M MURALI R ESPONDENT BY : SHRI KISHORE G UPTA /DATE OF HEARING : 0 8 - 0 3 - 201 6 / DATE OF PRONOUNCEMENT : 08 - 03 - 201 6 ORDER : . . : PER AMIT SHUKLA , JM : AT THE OUTSET, THE LD. DR HAS POINTED OUT THAT, BOTH THE APPEALS HAVE BEEN FILED AGAINST SAME ORDER DATED 30.09.2013 PASSED BY THE CIT(A) - X, MUMBAI FOR THE QUANTUM OF ASSESSMENT PASSED UNDER SECTION 154 FOR THE ASSESSMENT YEAR 2005 - 06. THAT IS, BOTH THE APPEALS ARE IDENTICAL FILED AGAINST THE ORDER, THEREFORE , ONE APPEAL SHOULD BE TREATED AS INFRUCTUOUS. ACCORDINGLY, ITA NO. 1830/MUM/2014 IS DISMISSED AS INFRUCTUOUS. M/S ASIA TODAY LTD (NEW) ITA NO. 1379 /M U M /201 4 ITA NO. 1380/MUM/2014 2 2. THE ONLY GROUND RAISED BY THE REVENUE IN ITA N O.1379/MUM/2014 CHALLENGING THE IMPUGNED ORDER DATED 30.09.2013 READS AS UNDER: - 1 . ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE L D . DIT(A) WAS CORRECT IN HOLDING THAT INTEREST UNDER SECTION 244A OF THE I T ACT, 1961 IS TO BE ALLOWED TO ASSESSEE FOR PERIOD FOR WHICH THE ASSESSEE WAS NOT ABLE TO PRODUCE ORIGINAL TDS CERTIFICATES FOR SUBSTANTIATING ITS CLAIM IN THE RETURN OF INCOME FILED EVEN WHEN THE DEFAULT WAS ON PART OF THE ASSESSEE AND THEREFORE, NO INTEREST WAS ALLOWABLE FOR THE AFORESAID PERIOD. 3 . AT THE OUTSET, BOTH THE PART IES ADMITTED THAT THIS ISSUE STANDS COVERED BY THE DECISION OF HONBLE J URISDICTIONAL HIGH COURT IN THE CASE OF LARSEN & TOUBRO LTD, REPORTED IN [2011] 330 ITR 340. THIS ORDER HAS BEEN FOLLOWED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004 - 05 VIDE ORDER DATED 23.12.2015 IN ITA NO. 4236/MUM/2014. 4. AFTER CONSIDERING THE AFORESAID SUBMISSIONS AND ON PERUSAL OF THE IMPUGNED ORDER, WE FIND THAT THE ONLY ISSUE RELATES TO GRANTING OF INTEREST UNDER SECTION 244A, WHETHER IT SHOULD BE GRANT ED FROM THE DATE OF SUBMISSION OF CERTIFICATE OR FROM THE FIRST DAY OF ASSESSMENT YEAR. THE ASSESSEES CASE IS THAT AO OUGHT TO HAVE G RAN T ED INTEREST W.E.F. 1.4.2005 AS REFUND DUE TO THE ASSESSEE WHICH WAS ON ACCOUNT OF TAX DEDUCTED AND CREDIT ED T O THE GOV ERNMENT ACCOUNT BY THE D EDUCTOR. THE AO HOWEVER IN HIS ORDER PASSED UNDER SECTION 154 ON 12.04.2014 G A VE THE TDS CREDIT OF RS. 53,97,949/ - AND ALLOWED INTEREST UNDER SECTION 2 44A FROM THE DATE OF SUBMISSION OF THE TDS CERTIFICATE S . IN THE RETURN OF INCOME FILED ON 31.10.2005, THE ASSESSEE HA D CLAIMED TDS CREDIT OF RS. 1,43,56,403/ - AND THEREFORE , CONTENDED THAT IT IS ELIGIBLE FOR INTEREST FROM THE 1 ST APRIL, 2005 ITSELF. THE TRIBUNAL IN ASSESEES OWN CASE FOR THE AY 2004 - 05 FOLLOWING THE DECISION OF HONBL E BOMBAY HIGH COURT IN THE CASE OF LARSEN & TOUBRO LTD ( SUPRA ) DECIDED THE ISSUE IN THE FOLLOWING MANNER: - 4. WE FIND THAT THE HONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN & TOUBRO LTD. (SUPRA) HAS CATEGORICALLY HELD THAT THE M/S ASIA TODAY LTD (NEW) ITA NO. 1379 /M U M /201 4 ITA NO. 1380/MUM/2014 3 ASSESSE E IS ENTITLED TO IN TEREST ON TDS DUE TO THE ASSESSEE EVEN IF THE TDS CERTIFICATES HAVE BEEN FILED LATE IF THE TAX WAS DEDUCTED AND DEPOSITED WITH THE EXCHEQUER IN TIME, THE INTEREST HAS TO BE GRANTED TO THE ASSESSEE FROM 1ST DAY OF ASSESSMENT YEAR IN ACCORDANCE WITH SECTION 244A OF THE ACT AND NOT FROM THE DATE OF FILING OF TDS CERTIFICATES WITH THE REVENUE. THE FACTS IN THE INSTANT APPEAL BEFORE US ARE IDENTICAL TO THE FACTS BEFORE HONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN AND TOUBRO LIMITED(SUPRA) AND THE REVENUE HAS NOT CONTRADICTED THE SAME BEFORE US . RESPECTFULLY FOLLOWING THE SAME, WE REJECT THE CONTENTIONS OF THE REVENUE AND DISMISS THIS APPEAL BY DIRECTING THE AO TO GRANT INTEREST ON REFUND DUE TO THE ASSESSEE COMPANY ON ACCOUNT OF EXCESS TDS CLAIM W . E . F . 01 . 04 . 2004 AND NOT FROM THE DATE OF SUBMISSIONS OF TDS CERTIFICATES BY THE ASSESSEE COMPANY IN THE LIGHT OF OUR ABOVE DECISION STATED ABOVE STRICTLY IN ACCORDANCE WITH THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN AND TOUBRO LIMITED(SUPRA). WE ORDER ACCORDINGLY. 5. THUS, FOLLOWING THE AFORESAID REASONING AND THE BINDING JUDICIAL PRECEDENCE OF HONBLE JURISDICTIONAL HIGH COURT, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. ACCORDINGLY, THE SOLE GROUND RAISED BY THE DEP ARTMENT STANDS DISMISSED. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH MARCH , 2016 . SD/ - SD/ - ( ) ( ) ( RAJE NDRA ) ( AMIT SHUKLA ) ACCOU NTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 8 TH MARCH , 2016 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3) THE CIT (A) - 10 , MUMBAI . 4 ) THE DIRECTOR OF INCOME - TAX (INT. TAX.) - 1 , MUMBAI . M/S ASIA TODAY LTD (NEW) ITA NO. 1379 /M U M /201 4 ITA NO. 1380/MUM/2014 4 5 ) , , / THE D.R. A BENCH, MUMBAI. 6 ) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.P S