Ganesh Housing Corpn.Ltd., Ahmedabad V. The Dy.CIT.,Circle-4, Ahmedabad

ITA 1674/AHD/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0220 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-09-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 21-05-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NEETA SHAH
• Section: 234B; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI P.K.BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR SINGH, JUDICIAL MEMBER ITA NO.1674/AHD/2009 ASSESSMENT YEAR: 2006-07 DATE OF HEARING:10.9.09 DRAFTED:16.9.09 GANESH HOUSING CORPORATION LTD, 1 ST FLOOR, SAMUNDRA COMPLEX, OPP. SHANTANU SARDAR PATEL, ELLISBRIDGE, AHMEDABAD PAN NOAAACG5590Q V/S . THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-4, AHMEDABAD (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI DHIREN SHAH, AR RESPONDENT BY:- SMT. NEETA SHAH, DR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-VIII, AHMEDABAD IN APPEAL NO. CIT(A)-VIII/DC-4/221/07-08 DATED 25-02-2009. THE PROCESSING OF RETURN WAS DON E UNDER INTIMATION U/S.143(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO A S THE ACT) VIDE DATED 06-12-2007. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AS REGARDS TO CHARGING OF INTEREST U/S.234B AND 234C THE AC, WHILE COMPUTING THE INCOME U/S.115JA OF THE ACT. FOR THIS, THE ASSESSEE HAS RAISED THE FOLLOWIN G TWO GROUNDS:- I. CHARGING OF INTEREST U/S 234B & 234C OF THE ACT OF RS.9,25,722/- AND 5,38,150/- RESPECTIVELY. 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE INTEREST CHARGED U/S. 234B & U/S.234C OF THE ACT OF RS.9,5,7 22/- AND RS.5,38,150/- RESPECTIVELY WHILE RELYING UPON THE DECISION OF SPE CIAL BENCH OF HONBLE ITAT, AHMEDABAD IN THE CASE OF ASHIMA SYNTHETICS WH EREIN IT HAS BEEN HELD THAT INTEREST UNDER SECTIONS 234B & 234C WILL BE CHARGEABLE EVEN IN ITA NO.1674/AHD/2009 A.Y. 2006-07 GANESH HOUSING CORPORATION LTD. V, DCIT CIR-4, ABD PAGE 2 THE CASES WHERE THE INCOME HAS BEEN DETERMINED UNDE R SECTION 115JB OF THE ACT. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN FAILING TO CONSIDER THE FACT THAT THE HONBLE BOMBAY HIGH COURT IN THE CASE SNOW CEM INDIA LTD. VS. DCIT 221 CTR 594 HAS HELD THAT THE DECISION RENDERED IN THE CASE OF CIT VS. KOTAK MAHINDRA FINANCE LTD. 265 ITR 199 (BOM.) DOES NOT L AY A GOOD LAW AND THE HONBLE BOMBAY HIGH COURT WHILE HOLDING SO HAS DECI DED THAT THE INTEREST U/S.234B & 234C IS NOT LEVIABLE IN THE CASE OF COMP UTATION OF INCOME U/S.115JA OF THE ACT BY FOLLOWING THE DECISION OF H ON;BLE SUPREME COURT IN THE CASE CIT VS. KWALITY BISCUITS LTD. THE LD. CIT (A) HAS FAILED TO CONSIDER THE FACT THAT WHEN THE HONBLE ITA DECIDED THE ISSU E AGAINST THE APPELLANT FOR A.Y,. 2004-05 & 2005-06, THE DECISION OF HON;BLE BO MBAY HIGH COURT WAS NOT BEFORE IT. 3. AT THE OUTSET LD. DEPARTMENTAL REPRESENTATIVE AS WELL AS LD. COUNSEL FOR THE ASSESSEE FAIRLY AGREED THAT THE ISSUE IS SQUARELY C OVERED IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE BY THE DECISION OF SPECIAL BENCH OF AHMEDABAD BENCH IN THE CASE OF ACIT V. ASHIMA SYNTEIX LTD. (2009) 117 ITD 1 (AHD) (SB), WHEREIN IT HAS BEEN HELD THAT THE INTEREST UNDER SECTIONS 234B & 2 34C WILL BE CHARGEABLE EVEN IN THE CASES WHERE THE INCOME HAS BEEN DETERMINED UNDE R SECTION 115JB OF THE ACT. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE IT AT AHMEDABAD SPECIAL BENCH AND WE DISMISS THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 30/10/2009 SD/- SD/- (P.K.BANSAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD, DATED :30/10/2009 *DKP COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)-VIII, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD