DCIT, New Delhi V. M/s. The State Trading Corporation India Ltd., New Delhi

ITA 1532/DEL/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6666 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 22-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Section: 244A

Judgement Text

1 ITA NO. 1532/DEL/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 1532/DEL/20 16 (A.Y 2012-13) DCIT CIRCLE-25(1), C. R. BUILDING, I. P. ESTATE NEW DELHI (APPELLANT) VS THE STATE TRADING CORPORATION INDIA LTD. JAWAHAR VYAPAR BHAWAN, TOLSTOY MARG NEW DELHI AAACT0102F (RESPONDENT) APPELLANT BY MS. ASHIMA NEB, SR. DR. RESPONDENT BY SH. KAMAL JETLEY, RISHABH JETLEY, ADVS ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER DATED 31/12/2015 PASSED BY CIT(A)-33, NEW DELHI FOR ASSESSMENT YEAR 2012-13. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE ORDER PASSED BY LD. CIT (A) IS ERRONEOUS AND THE LE ARNED CIT(A) HAS ERRED IN DELETING AO TO ALLOW INTEREST U/S 244A FROM THE DAT E OF PAYMENT OF SELF ASSESSMENT TAX TO THE DATE OF REFUND.' 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE ORDER PASSED BY , THE LD. CIT(A) IS ERRONEOUS AND T HE LEARNED CIT(A) HAS ERRED IN NOT TAKING NOTE OF THE RECENT DECISION OF THE HO N'BLE DELHI HIGH COURT IN THE DATE OF HEARING 15.01.2019 DATE OF PRONOUNCEMENT 23.01.2019 2 ITA NO. 1532/DEL/2016 CASE OF CIT VS. ENGINEERS INDIA LTD.373 ITR 377 (DE LHI) THAT INTEREST NOT PAYABLE IN RESPECT OF REFUND ATTRIBUTABLE TO SELF-A SSESSMENT TAX VOLUNTARY PAID BY THE ASSESSEE. FURTHER, IT MAY ALSO BE NOTED THAT IN TERMS OF CLAUSE 90 OF THE FINANCE BILL 2016 SECTION 244A IS SOUGHT TO BE AMENDED W.E.F 01.06.2016 TO ALLOW INTEREST ON INTEREST ON REFUND INVOLVING SELF-ASSESSMENT TAX, THEREFORE, IT IS EVIDENT THAT NO SUCH INTEREST WAS ADMISSIBLE IN THE ABSENCE OF SUCH PROVISION AND IT WOULD APPLY ONLY T O THE REFUNDS DETERMINED ON OR AFTER 01.06.2016.' 3. THE ASSESSMENT ORDER WAS PASSED ON 9/9/2013 THER EBY THE ASSESSING OFFICER DISALLOWED INTEREST U/S 244A OF THE INCOME TAX ACT, 1961 FROM THE DATE OF PAYMENT OF SELF ASSESSMENT TAX OF RS.3,41,33,988 /- TILL THE DATE OF ACTUAL REFUND. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) PARTLY ALLOWED THE APPEAL O F THE ASSESSEE. 5. THE REVENUE IS BEFORE US. 6. THE LD. DR SUBMITTED THAT THE AMENDMENT TO SECTI ON 244A OF THE ACT IS NOT RETROSPECTIVE AND WILL NOT BE APPLICABLE IN THE PRESENT CASE. THE LD. DR RELIED UPON THE ORDER OF THE ASSESSING OFFICER AND ALSO RELIED UPON THE PROVISION U/S 244A PRIOR TO AMENDMENT W.E.F. 1/6/20 16. 7. THE LD. AR SUBMITTED THAT THE CIT(A) HAS RIGHTLY TAKEN COGNIZANCE OF THE DECISION OF THE HON'BLE SUPREME COURT IN CASE OF EN GINEERS INDIA LTD. VS. CIT(A) WHICH WAS RELIED BY THE REVENUE IN GROUND NO . 2 AS THE HON'BLE HIGH COURT DECISION IS REVERSED BY THE HONBLE APEX COU RT. THE LD. AR FURTHER SUBMITTED THAT AS PER THE PREVALENT LAW HELD IN CIT (A) VS. SATLAJ INDUSTRIES LTD. (325 ITR 331) HAS DECIDED THIS ISSUE IN FAVOUR OF T HE ASSESSEE. THUS, THE LD. AR RELIED UPON THE ORDER OF THE CIT(A). 3 ITA NO. 1532/DEL/2016 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE CIT(A) HELD AS UNDER:- 5. THE SUBMISSIONS OF THE APPELLANT AND THE FACTS H AVE BEEN CAREFULLY CONSIDERED. IN CIT V SATLEJ INDUSTRIES LTD. (325 I TR 331) IN WHICH THE HONBLE DELHI HIGH COURT HAS OBSERVED AS FOLLOWS: WHERE THE SELF-ASSESSMENT TAX PAID BY THE ASSESSEE UNDER SECTION 140A IS REFUNDED, THE ASSESSEE WOULD BE ENTITLED TO INTEREST THEREON SINCE THE SELF-ASSESSM ENT TAX FALLS WITHIN THE EXPRESSION REFUND OF ANY AMOUNT. THE COMPUTATION OF INTEREST ON SELF-ASSESSMENT TAX HAS TO BE IN TERMS OF SECTION 244A(1)(B), I.E. FROM THE DATE OF PAYMENT OF SUCH AMOUNT UP TO THE DATE ON WHICH REFU ND IS ACTUALLY GRANTED. 6. IN VIEW OF THE ABOVE, THE A.O. IS DIRECTED TO ALLOW INTEREST U/S 244A FROM THE DATE OF PAYMENT OF SELF ASSESSMENT TAX TO THE DATE OF REFUND IN ACCORDANCE WITH THE ABOVE DECISION OF HONBLE DELHI HIGH COURT. THE GROUND IS ACCORDINGLY ALLOWED. THERE IS NO NEED TO INTERFERE WITH THE FINDING OF T HE CIT(A) AS THE HONBLE JURISDICTIONAL HIGH COURT IN CASE OF SATLAJ INDUSTR IES LTD. HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE. THEREFORE, THE AP PEAL OF THE REVENUE IS DISMISSED. 9. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JANUARY, 2019 . SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 23/01/2019 R. NAHEED * 4 ITA NO. 1532/DEL/2016 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 16.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 16.01.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 2 3 .01.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 2 3 .01.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 3 .01.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK