JCIT, Bangalore V. M/s ABB Ltd., Bangalore

ITA 1413/BANG/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0464 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-04-2016
• Assessment Year: 1988-1989
• Appeal Filed On: 11-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Assessee Lawyers: K S LUKOSE
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO.1413/BANG/2013 ASSESSMENT YEAR : 1988-89 THE JOINT COMMISSIONER OF INCOME TAX, LTU, BANGALORE. VS. M/S. ABB LTD., KHANIJA BHAVAN, RACE COURSE ROAD, BANGALORE 560 001. PAN: AAACA 3834B APPELLANT RESPONDENT APPELLANT BY : DR. P.K. SRIHARI, ADDL. CIT(DR) RESPONDENT BY : SHRI K.S. LUKOSE DATE OF HEARING : 20.04.2016 DATE OF PRONOUNCEMENT : 22.04.2016 O R D E R PER A.K. GARODIA, ACCOUNTANT MEMBER THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R OF LD. CIT (APPEALS), LTU, BANGALORE DATED 22.7.2013 FOR THE A SSESSMENT YEAR 1988- 89. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- 1. THE ORDER OF THE LD. CIT (A) IS OPPOSED TO LAW AND FACTS OF THE CASE. ITA NO.1413/BANG/2013 PAGE 2 OF 4 2. THE LD. CIT(A) ERRED IN RELYING UPON THE ORDER O F SUPREME COURT IN THE CASE OF SANDVIK ASIA, WHICH IS REVERSE D BY THE APEX COURT IN THE CASE OF GUJARAT FLUORO CHEMICALS STATING SECTION 244 PROVIDES ONLY SIMPLE INTEREST. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URG ED AT THE TIME OF HEARING. 3. IT WAS SUBMITTED BY THE LD. DR OF REVENUE THAT L D. CIT (APPEALS) HAS FOLLOWED THE JUDGMENT OF HONBLE APEX COURT RENDERE D IN THE CASE OF SANDVIK ASIA LTD. V. CIT, (2006) 280 ITR 643, BUT AS PER THE LATER JUDGMENT RENDERED BY THE HONBLE APEX COURT IN THE CASE OF CIT V. GUJARAT FLUORO CHEMICALS REPORTED IN 42 TAXMANN.COM 1 (SC) , THE HONBLE APEX COURT HAS REVERSED ITS JUDGMENT RENDERED IN THE CASE OF SANDV IK ASIA LTD. (SUPRA) . HE HAS SUBMITTED A COPY OF THIS JUDGMENT OF THE HON BLE APEX COURT RENDERED IN THE CASE OF CIT V. GUJARAT FLUORO CHEMICALS (SUPRA) AND URGED THAT IN VIEW OF THIS LATER JUDGMENT RENDERED BY A L ARGER BENCH OF HONBLE APEX COURT, THIS LATER JUDGMENT SHOULD BE FOLLOWED AND THE ORDER OF LD. CIT (APPEALS) SHOULD BE REVERSED AND THAT OF THE AO SHO ULD BE RESTORED. 4. ON BEHALF OF THE ASSESSEE, SHRI K.S. LUKOSE APPE ARED AND SUPPORTED THE ORDER OF LD. CIT (APPEALS). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IN THE LATER JUDGMENT RENDERED BY THE LARGER BENCH OF THE HONBL E APEX COURT IN THE CASE OF CIT V. GUJARAT FLUORO CHEMICALS (SUPRA) , IT WAS HELD BY THE HONBLE APEX COURT THAT ONLY THAT INTEREST PROVIDED FOR UND ER THE STATUTE MAY BE ITA NO.1413/BANG/2013 PAGE 3 OF 4 CLAIMED BY THE ASSESSEE FROM REVENUE AND NO OTHER I NTEREST ON STATUTORY INTEREST. THE HONBLE APEX COURT IN THIS CASE HAS DULY CONSIDERED THE EARLIER JUDGMENT RENDERED BY A BENCH OF TWO HONBLE JUDGES OF THE HONBLE APEX COURT IN THE CASE OF SANDVIK ASIA LTD. (SUPRA), AND THIS LATER JUDGMENT IS RENDERED BY A LARGER BENCH OF THE HONB LE APEX COURT AND THEREFORE, THIS LATER JUDGMENT OF THE HONBLE APEX COURT RENDERED BY A LARGER BENCH HAS TO BE FOLLOWED INSTEAD OF EARLIER JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF SANDVIK ASIA LTD. (SUPRA) . WE THEREFORE, SET ASIDE THE ORDER OF LD. CIT(APPEALS) AND RESTORE THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR FRESH DEC ISION IN THE LIGHT OF THIS LATER JUDGMENT OF THE HONBLE APEX COURT RENDERED I N THE CASE OF CIT V. GUJARAT FLUORO CHEMICALS (SUPRA) AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF REVENUE STANDS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF APRIL, 2016. SD/- SD/- (VIJAY PAL RAO ) ( A.K. GA RODIA ) JUDICIAL MEMBER ACCOUNTA NT MEMBER BANGALORE, DATED, THE 22 ND APRIL, 2016. /D S/ ITA NO.1413/BANG/2013 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.