DCIT, CHENNAI V. M/s. Indian Overseas Bank, CHENNAI

ITA 1919/CHNY/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52156 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 14-12-2011
• Assessment Year: 1997-1998
• Appeal Filed On: 12-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: C NARESH CHARTERED ACC OUNTANT
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO.1919(MDS)/2010 ASSESSMENT YEAR :1997-98 THE DEPUTY COMMISSIONER OF INCOME-TAX, LARGE TAX PAYER UNIT, CHENNAI. VS. M/S.INDIAN OVERSEAS BANK, 763, MOUNT ROAD, CHENNAI-600 002. PAN AAACI1223J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIRUDH RAI, IRS, COM MISSIONER OF INCOME-TAX. RESPONDENT BY : SHRI C.NARESH, CHARTERED ACC OUNTANT. DATE OF HEARING : 14 TH DECEMBER, 2011 DATE OF PRONOUNCEMENT : 14 TH DECEMBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE FOR THE ASSES SMENT YEAR 1997-98. THE APPEAL IS DIRECTED AGAINST THE O RDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS), LARGE TAX PAYE R UNIT AT - - ITA NO.1919 OF 2010 2 CHENNAI, DATED 20-8-2010 AND ARISES OUT OF THE ORDE R PASSED UNDER SECTION 154 OF THE INCOME-TAX ACT, 1961. 2. THE ONLY GROUND RAISED BY THE REVENUE IS THAT T HE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE INTEREST LEVIED UNDER SECTION 234D OF THE INCOME-TA X ACT, 1961. IT IS THE CASE OF THE REVENUE THAT THE COMMISSIONER OF INCOME- TAX(APPEALS) HAS ERRED IN HOLDING THAT INTEREST UND ER SECTION 234D CAN BE LEVIED ONLY PROSPECTIVELY WITH EFFECT F ROM THE ASSESSMENT YEAR 2004-05. THE REVENUE HAS PLACED RE LIANCE ON THE DECISION OF THE HONBLE KERALA HIGH COURT IN TH E CASE OF CIT VS. KERALA CHEMICALS & PROTEINS LTD., 323 ITR 584. 3. THIS ISSUE HAS BEEN HELD IN FAVOUR OF THE ASSES SEE BY THE SPECIAL BENCH OF THE INCOME-TAX APPELLATE TR IBUNAL, DELHI IN THE CASE OF INCOME-TAX OFFICER VS. EKTA PROMOTER S PVT. LTD., 305 ITR (AT) 1 (DELHI) (SB). THE COMMISSIONER OF IN COME- TAX(APPEALS) HAS RELIED ON THE ABOVE DECISION OF TH E SPECIAL BENCH. AS AGAINST THE JUDGMENT OF THE HONBLE KERA LA HIGH COURT, WHICH DOES NOT HAVE DIRECT JURISDICTION ON T HE MATTER - - ITA NO.1919 OF 2010 3 ARISING IN THE STATE OF TAMIL NADU, A DECISION OF T HE SPECIAL BENCH OF THE TRIBUNAL IS AVAILABLE, WHICH IS TO BE APPLIED HERE IN THE ABSENCE OF A JUDGMENT FROM THE JURISDICTIONAL H IGH COURT. IN SUCH CIRCUMSTANCES THE COMMISSIONER OF INCOME-TAX(A PPEALS) HAS RIGHTLY FOLLOWED THE SPECIAL BENCH DECISION. 4. NOW THE HONBLE HIGH COURT OF MADRAS ITSELF HAS CONSIDERED THIS ISSUE IN THE JUDGMENT OF THEIR LORD SHIPS DATED 30-9-2011 PASSED IN TAX CASE(APPEAL) NO.534 OF 2008 IN THE CASE OF COMMISSIONER OF INCOME-TAX-III, CHENNAI VS. INDIAN OVERSEAS BANK. THE HONBLE JURISDICTIONAL HIGH COU RT HAS HELD THAT LEVY OF INTEREST UNDER SECTION 234D CANNOT BE RETROSPECTIVE. IT IS TO BE SEEN, THEREFORE, THAT THE ORDER OF THE SPECIAL BENCH HAS BEEN APPROVED BY THE HONBLE JURISDICTIONAL HIG H COURT. IN THESE CIRCUMSTANCES THE GROUNDS RAISED BY THE REVEN UE ARE TO BE REJECTED. 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. - - ITA NO.1919 OF 2010 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 14 TH OF DECEMBER, 2011 AT CHENNAI. SD/- SD/- (GEORGE MATHAN) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 14 TH DECEMBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.