ACIT, CHENNAI V. TCP Limited, CHENNAI

ITA 1459/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68699 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 28-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI ABRAHAM P.GEORGE , ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NO.1459/MDS/2013 (ASSESSMENT YEAR: 2003-04) THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-III(2), NEW BLOCK, 4 TH FLOOR, CHENNAI-600 034. VS. M/S. TCP LIMITED, TCP SAPTHAGIRI BHAWAN, OLD NO.10, NEW NO.4, KARPAGAMBAL NAGR, MYLAPORE, CHENNAI-600 004. PAN: AAACT3615K (APPELLANT) (RESPONDENT) APPELLANT BY : MR. GURU BASHYAM, JCIT RESPONDENT BY : NONE DATE OF HEARING : 25 TH SEPTEMBER, 2013 DATE OF PRONOUNCEMENT : 27 TH SEPTEMBER, 2013 O R D E R PER CHALLA NAGENDRA PRASAD, JM : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-III, CHENN AI. THE ONLY GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THA T COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DEL ETING INTEREST LEVIED UNDER SECTION 234D OF THE ACT HOLDI NG THAT NO INTEREST UNDER SECTION 234D COULD BE CHARGED PRIOR TO ASSESSMENT YEAR 2004-05. ITA NO. 1459/MDS//2013 2 2. THE RESPONDENT-ASSESSEE FILED A PETITION FOR ADJOURNMENT STATING THAT THE AUTHORIZED REPRESENTAT IVE IS PRE-OCCUPIED WITH FILING OF TAX AUDIT RETURNS. HOWE VER, AS THE ISSUE IN THE APPEAL IS SQUARELY COVERED BY THE DECI SION OF THE HONBLE JURISDICTIONAL HIGH COURT, WE REJECT THE PE TITION FOR ADJOURNMENT FILED BY THE ASSESSEE AND PROCEED TO D ECIDE THE MATTER AFTER HEARING THE DEPARTMENTAL REPRESENTATIV E. 3. THE COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE INTEREST LEVIED UNDER SECTION 234D OF THE ACT REF ERRING TO THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN TH E CASE OF ITO VS. EKTA PROMOTERS PVT. LTD., (113 ITD 719) WHE REIN IT WAS HELD THAT THE PROVISIONS OF SECTION 234D WHICH HAVE BEEN BROUGHT ON STATUTE WITH EFFECT FROM 1.6.2003 W ILL HAVE APPLICATION ONLY WITH EFFECT FROM THE ASSESSMENT YE AR 2004- 05. THE COMMISSIONER OF INCOME TAX (APPEALS) ALSO R EFERRED TO THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF AYYAPPAN TEXTILES LTD. VS. CIT (241 ITR 545). WE FI ND THAT THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F CIT VS. INFRASTRUCTURE DEVELOPMENT FINANCE CO.LTD., (340 IT R 580) ITA NO. 1459/MDS//2013 3 HELD THAT INTEREST UNDER SECTION 234D IS LEVIABLE E VEN FOR THE ASSESSMENT YEARS PRIOR TO 2004-05 AND THIS DECISION IS DIRECTLY ON THE ISSUE OF CHARGEABILITY OF INTEREST UNDER SECTION 234D. THE HIGH COURT HELD THAT EVEN THOUGH THE SECT ION WAS INTRODUCED WITH EFFECT FROM 1.6.2003 LEVYING PENALT Y UNDER SECTION 234D, SINCE THE ASSESSMENT ORDER WAS PASSED ON A LATER DATE I.E. AFTER 1.6.2003, THE PENALTY UNDER S ECTION 234D IS LEVIABLE. THE HONBLE HIGH COURT HELD THAT THE D ATE OF PASSING OF ASSESSMENT ORDER IS RELEVANT BUT NOT THE RELEVANT ASSESSMENT YEAR. SIMILAR VIEW WAS EXPRESSED BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. INDIAN OIL CORPORATION LTD. (254 CTR 113[BOM]). THE DECISION S OF MADRAS HIGH COURT ON WHICH RELIANCE WAS PLACED BY T HE COMMISSIONER OF INCOME TAX (APPEALS) ARE NOT ON TH E PROVISIONS OF SECTION 234D AND NOT RELEVANT TO THE ISSUE. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIO NS OF HONBLE MADRAS HIGH COURT IN THE CASE OF CIT VS. INFRASTRUCTURE DEVELOPMENT FINANCE CO.LTD.,(SUPRA) AND THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. IN DIAN OIL CORPORATION (SUPRA) WE SET ASIDE THE ORDER OF THE ITA NO. 1459/MDS//2013 4 COMMISSIONER OF INCOME TAX (APPEALS) AND ALLOW THE GROUNDS RAISED BY THE REVENUE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY, THE 27 TH DAY OF SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (ABRAHAM P.GEORGE ) (CHALLA NA GENDRA PRASAD) ACCOUNTANT MEMBER J UDICIAL MEMBER CHENNAI, DATED THE 27 TH SEPTEMBER, 2013. SOMU COPY TO: (1) APPELLANT (4 ) CIT(A) (2) RESPONDENT (5 ) D.R. (3) CIT (6 ) G.F.