DDIT (IT) 1(2), MUMBAI V. CALYON BANK ( FORMERLY CREDIT AGRICOLE INDOSUEZ), MUMBAI

ITA 1745/MUM/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6795 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-06-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 05-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MALLIKA APTE
• Keywords: Retrospective amendment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH, MUMBAI BEFORE SHRI R.V. EASWAR, PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 1745/MUM/2010 (ASSESSMENT YEAR: 2000-01) DDIT (IT) - 1(2) M/S. CALYON BANK (FORMERLY CREDIT ROOM NO. 119, SCINDIA HOUSE AGENCOLE INDOSUEZ) HOECHST HOUSE 1ST FLOOR, BALLARD ESTATE VS. 11TH FLOOR, NARIMAN POINT N.M. ROAD, MUMBAI 400038 MUMBAI 400021 PAN - AACCC 3872 B APPELLANT RESPONDENT APPELLANT BY: SHRI PARESH JOHRI RESPONDENT BY: SHRI MALLIKA APTE O R D E R PER B. RAMAKOTAIAH, A.M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE CIT(A) X, MUMBAI DATED 16.12.2009. REVENUE HAS RAISED THE GRO UND THAT THE CIT(A) ERRED IN HOLDING THAT INTEREST UNDER SECTION 234D C AN BE CHARGED ONLY W.E.F. 01.06.2003 AND NOT WITH RETROSPECTIVE EFFECT WHEN O N REGULAR ASSESSMENT INSTEAD OF REFUND, DEMAND WAS PAYABLE BY ASSESSEE. 2. IN THE QUANTUM APPEAL THE CIT(A) VIDE HIS ORDER DAT ED 14.11.2008 HAS CLEARLY DIRECTED THE A.O. NOT TO LEVY INTEREST UNDE R SECTION 234D, THE FACT OF WHICH WAS CLEARLY STATED BY THE A.O. IN THE ORDER G IVING EFFECT TO. HOWEVER, IN THE COMPUTATION OF TAX THE A.O. LEVIED INTEREST OF ` 36,27,467/-. THE MATTER WAS AGAIN CARRIED TO THE CIT(A) WHO VIDE THE ABOVE ORDER DIRECTED THE A.O. NOT TO LEVY INTEREST UNDER SECTION 234D AS THE LEVY IS IN VIOLATION OF HIS EARLIER ORDER. 3. WE HAVE HEARD THE RIVAL PARTIES. AS THE CIT(A) FOLL OWED THE SPECIAL BENCH DECISION IN THE CASE OF EKTA PROMOTERS (P) LT D. 113 ITD 719 WHILE DIRECTING THAT INTEREST SHOULD NOT BE LEVIED AS THE REFUND AROSE PRIOR TO 01.06.2003, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDERS OF THE CIT(A) NOW, WHICH AROSE DUE TO NON-IMPLEMENTING THE DIRECTIONS BY THE A.O. MOREOVER THE ISSUE IS ALSO DECIDED BY THE HON'BLE B OMBAY HIGH COURT IN THE ITA NO. 1745/MUM/2010 M/S. CALYON BANK 2 CASE OF CIT VS. BAJAJ HINDUSTAN LTD. (ITA NO. 198 O F 2009) WHEREIN THE HON'BLE HIGH COURT DECIDED THAT THE PROVISION HAS N O RETROSPECTIVE EFFECT AS IT CAME INTO EFFECT W.E.F. 01.06.2003. IN VIEW OF T HIS, WE SEE NO REASON TO UPHOLD THE CONTENTIONS OF THE REVENUE. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JUNE 2011. SD/- SD/- (R.V. EASWAR) (B. RAMAKOTAIAH) PRESIDENT ACCOUNTANT MEMBER MUMBAI, DATED: 27 TH JUNE 2011 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) X, MUMBAI 4. THE CIT INTERNATIONAL TAXATION, MUMBAI 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.