ACIT 3(1), Indore V. Madhya Pradesh Financial Corporation, Indore

ITA 191/Ind/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7603 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 01-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S MANTRI
• Assessee Lawyers: N D PATWA A RS
• Section: 115JB; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HONBLE RAJPAL YADAV, VICE PRESIDENT AND HONBLE MANISH BORAD, ACCOUNTANT MEMBER VIRTUAL HEARING ITA NO.191 & 192/IND/2020 ASSESSMENT YEARS: 2011-12 & 2012-13 ACIT-3(1) INDORE : APPELLANT V/S MADHYA PRADESH FINANCIAL CORPORATION INDORE : RESPONDENT PAN:AADCM6480C REVENUE BY SHRI S.S. MANTRI, CIT-DR RESPONDENT BY SHRI ASHISH GOYAL, & N.D. PATWA, ARS DATE OF HEARING 04.08.2021 DATE OF PRONOUNCEMENT 23.08.2021 O R D E R PER MANISH BORAD, A.M THE ABOVE CAPTIONED APPEALS FILED AT THE INSTANCE OF THE REVENUE FOR ASSESSMENT YEAR 2011-12 & 2012-13 ARE DIRECTED M.P. FINANCIAL CORPORATION ITANOS.191 & 192/IND/2020 2 AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TA X(APPEALS)-I (IN SHORT LD. CIT], INDORE DATED 28.02.2020 WHICH ARE ARISING OUT OF THE ORDER U/S 154 OF THE INCOME TAX ACT 1961(IN SHORT THE ACT) DATED 26.02.2019 FRAMED BY ACIT-3(1), INDORE . THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL IN ITANOS.191 & 192/IND/2020: 1. WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN HOLDING TH AT THE ASSESSEE HAS WRONGLY PAID TAX UNDER MAT PROVISION F OR A.Y. 2011-12/2012-13 WHICH CONSTITUTES A MISTAKE APPARENT FROM THE RECORD WHICH IS TO BE RECTIFIED U /S 154 OF INCOME TAX ACT, PARTICULARLY WHEN NO SUCH PROVISIONS ARE AVAILABLE WITH RESPECT TO RECTIFICAT ION OF RETURN OF INCOME FILED BY THE ASSESSEE. 2. THE APPELLANT CRAVES LEAVE TO ADD TO OR DEDUCT F ROM OR OTHERWISE AMEND THE ABOVE GROUNDS OF APPEAL. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE ISSUE RAISED IN BOTH THESE APPEALS BY THE REVENUE I S SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F HON'BLE INCOME TAX APPELLANT TRIBUNAL INDORE IN ASSESSEES OWN CASE VIDE ITANO.117 TO 119/IND/2016 FOR A.Y. 2008-09 TO 2010- 11. 3. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE (DR) SUPPORTED THE ORDERS OF BOTH LOWER AUTHORITIES BUT COULD NOT CONTROVERT THE CONTENTION MADE BY THE ASSESSEE THAT THE ISSUE IS C OVERED AGAINST M.P. FINANCIAL CORPORATION ITANOS.191 & 192/IND/2020 3 THE REVENUE BY THE DECISION OF THIS TRIBUNAL IN ASS ESSEES OWN CASE. 4. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. REVENUES COMMON GRIEVANCE AGAINS T THE FINDING OF LD. CIT(A) HOLDING THAT THE ASSESSEE HAS WRONGLY PAID TAX UNDER MAT PROVISION WHICH CONSTITUTE A MISTAKE APPARENT FROM THE RECORDS WHICH IS TO BE RECTIFIED U/S 154 O F THE ACT, PARTICULARLY WHEN NO SUCH PROVISIONS ARE AVAILABLE WITH RESPECT TO RECTIFICATION OF RETURN OF INCOME FILED BY THE ASSE SSEE. 5. WE OBSERVE THAT THE ASSESSEE IS A CORPORATION ES TABLISHED BY MADHYA PRADESH STATE GOVERNMENT AND IS ENGAGED IN T ERM LENDING TO SMALL, MEDIUM SCALE AND SERVICES SECTOR INDUSTRIES. IN THE RETURN OF INCOME ORIGINALLY FILED, ASSESSEE ACC EPTED TO BE LIABLE TO PAY TAX ON THE BOOK PROFIT U/S 115JB OF T HE ACT AND PAID TAX ACCORDINGLY. THEREAFTER THE ASSESSEE MOVED RECT IFICATION APPLICATION U/S 154 OF THE ACT TO RECTIFY THE ASSES SMENT ON THE POINT OF NON-APPLICABILITY OF MAT PROVISIONS ON THE STATE OF FINANCE CORPORATIONS. THE RECTIFICATION APPLICATION S WERE REJECTED BY THE LD. AO. M.P. FINANCIAL CORPORATION ITANOS.191 & 192/IND/2020 4 6. AGGRIEVED ASSESSEE FILED AN APPEAL BEFORE THE LD . CIT(A), SUCCEEDED AND ALLOWED IN FAVOUR OF THE ASSESSE RELY ING ON THE DECISION OF THIS TRIBUNAL HELD IN ASSESSEES OWN CA SE. 7. WE FIND THAT IN INSTANT TWO APPEALS, SIMILAR ISS UE IS RAISED BY THE REVENUE AND THE FACTS ARE IDENTICAL AS THERE IS A SIMILAR REJECTION OF ASSESSEES APPLICATION U/S 154 OF THE ACT AND SUBSEQUENTLY THE APPEAL FILED AGAINST THE ORDER U/ S 154 OF THE ACT WAS DECIDED IN FAVOUR OF ASSESSEE. THIS ISSUE H AS COME UP BEFORE THIS TRIBUNAL IN ASSESSES OWN CASE FOR A.YS . 2008-09 TO 2010-11 AND THIS TRIBUNAL VIDE ITS ORDER DATED 04.0 8.2016 ITANO.117 TO 119/IND/2016 DECIDED AGAINST THE REVEN UE OBSERVING AS FOLLOWS: 4. WE HAVE HEARD BOTH THE SIDES. DURING HEARING, TH E LEARNED COUNSEL FOR THE ASSESSEE DREW OUT ATTENTION TO THE JUDGMENT OF THE HON'BLE CALCUTTA HIGH COURT IN THE CASE OF W EST BANGAL STATE WAREHOUSING CORPORATION VS. CIT 27 TAXMAN 589 (CAL) WHEREIN IT WAS HELD THAT SECTION 154 OF THE INCOME TAX ACT 1961-RECTIFICATION OF MISTAKE-APPARENT FROM RECORD- ASSESSEE, A STATE WAREHOUSING CORPORATION, DID NOT MAKE CLAIM FOR EXEMPTION OF ITS INCOME DERIVED FROM WAREHOUSING UN DER SECTION 83(NOW SECTION 10(29) BEFORE ITO OR AAC- LA TER IT MOVER AN APPLICATION UNDER SECTION 154 FOR CLAIMING SUCH EXEMPTION ALL MATERIAL FOR PURPOSE OF DETERMINING THE QUESTION WAS BEFORE ITO AND IN SUBSEQUENT ASSESSMEN T M.P. FINANCIAL CORPORATION ITANOS.191 & 192/IND/2020 5 YEARS ASSESSEE HAD BEEN ALLOWED EXEMPTION WHETHER ASSESSEES ASSESSMENT HAD TO BE RECTIFIED UNDER SEC TION 154 TO ALLOW IT EXEMPTION CLAIMED HELD, ON FACTS YES. 5. SIMILARLY, IN THE INSTANT CASE, WHILE FILING THE RETURN OF INCOME, THE ASSESSEE ID NOT CLAIM THAT THE ASSESSEE IS A STATE FINANCIAL CORPORATION AND THE ASSESSEE HAS FILED IT S RETURN UNDER THE IMPRESSION THAT MAT PROVISION IS APPLICAB LE AND PAID THE MAT ON IT AFTER IT HAS COME TO THE KNOWLED GE OF THE ASSESSEE THAT IN THE YEARS UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2008-09 TO 2010-11, THE ASSESSEE IS NOT LAIBLE FOR MAT AND THE MAT IS APPLICABLE FROM THE A SSESSMENT YEAR 2013-14 I.E. SUB-SECTION (2 OF SECTION 155JB(1 ). THEREFORE, THE ASSESSEE HAS MOVED THIS APPLICATION FOR RECTIFICATION THE ORDER BECAUSE THE ASSESSEE IS NOT COVERED UNDER MAT PROVISION U/S 155JB. THE ASSESSING OFFICE R DID NOT ALLOW THE APPLICATION AND THE LD. CIT(A) HAS AL LOWED IT. MOREOVER, THERE ARE VARIOUS DECISIONS INCLUDING THE DECISION OF THE HON'BLE KERALA HIGH COURT IN 196 TAXMAN.1 WH EREIN IT IS HELD THAT MAT IS APPLICABLE FROM THE ASSESSMENT YEAR 2013-14. THEREFORE, THE LD. CIT(A) IS FULLY JUSTIFI ED IN ALLOWING THE APPEALS OF THE ASSESSEE. WE, THEREFORE, FIND NO MERIT IN THESE APPEALS OF THE REVENUE AND DISMISS THE SAME. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ST AND DISMISSED. 8. WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISI ON OF THIS TRIBUNAL IN ASSESSES OWN CASE WHICH IS SQUARELY AP PLICABLE ON M.P. FINANCIAL CORPORATION ITANOS.191 & 192/IND/2020 6 THE ISSUES RAISED IN THE INSTANT TWO APPEALS AND AL SO IN VIEW OF THE FACT THAT LD. DR FAILED TO FURNISH ANY CONTRA RY BINDING DECISION IN ITS FAVOUR, FIND NO AMBIGUITY IN THE FI NDING OF LD. CIT(A) AND THE SAME STANDS CONFIRMED. ACCORDINGLY I NSTANT APPEALS FOR A.Y.2011-12 & 20120-13 ARE DISMISSED. 9. IN THE RESULT, REVENUES APPEALS IN ITANO.191 & 192/IND/2020 ARE DISMISSED. THE ORDER PRONOUNCED AS PER RULE 34 OF ITAT RULES, 1963 ON 23.08.2021. SD/- SD/- (RAJPAL YADAV) (MANISH BORAD) VICE PRESIDENT ACCOUNTANT ME MBER / DATED :23.08. 2021 PATEL/PS COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE