JCIT, Special Range-24, V. Delhi Metro Rail Corporation Ltd.,

ITA 2071/DEL/2001

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 6922 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-06-2017
• Assessment Year: 1997-1998
• Appeal Filed On: 18-05-2001
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S RANA
• Assessee Lawyers: C S AGRAWAL SR SHRI GAUTAM JA
• Section: 234B; 191

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES C : DELHI BEFORE SHRI BHAVNESH SAINI, J.M. & SHRI O.P. KANT, A.M. ITA.NO.2071/DEL./2001 ASSESSMENT YEAR 1997-1998 JCIT, SPL. RANGE-24, NEW DELHI. VS. M/S. DELHI METRO RAIL CORPN. LTD., NBCC PLACE (EAST BLOCK), BHISHAMAPITAMAHA MARG, NEW DELHI. PAN AAACD3254A (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI S.S. RANA, CIT-D.R. FOR ASSESSEE : SHRI C.S. AGRAWAL, SR.ADVOCATE, SHRI GAUTAM JAIN, ADVOCATE, MS. DEEPA SHARMA, C.A. DATE OF HEARING : 09.05.2019 DATE OF PRONOUNCEMENT : 10.05.2019 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-VI, NEW DELHI, DATED 28.02.2001, FOR THE A.Y. 1997-1998 ON THE FOLLOWING GROUNDS : 2 ITA.NO.2071/DEL./2001 M/S. DELHI METRO RAIL CORPN. LTD., NEW DELHI. 1.I. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN DIRECTING TO RECALCULATE INTEREST UNDER SECTION 234B. 1.II. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT ITNS 150 GIVING COMPUTATION OF INTEREST WAS SENT ALONG WITH THE ORDER OF ASSESSMENT WHICH CONSTITUTED SUFFICIENT COMPLIANCE OF THE PROVISIONS OF SECTION 234B IN VIEW OF APEX COURTS JUDGMENT IN THE CASE OF KALYAN KUMAR RAYS CASE 191 ITR 634. 2. THE LD. CIT(A) CONSIDERING THE ISSUE OF CHARGING OF THE INTEREST UNDER SECTION 234B OF THE I.T. ACT NOTE THAT THE GROUNDS OF APPEAL OF ASSESSEE STATES THAT CHARGING OF INTEREST AMOUNTING TO RS.1,30,562/- IS ARBITRARY AND ILLEGAL. A.O. WAS DIRECTED TO RECALCULATE THE INTEREST KEEPING IN VIEW THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF RANCHI CLUB LTD., 114 TAXMAN 414 (SC). 3. THE LD. D.R. SUBMITTED THAT THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT ITNS 150 GIVING COMPUTATION OF INTEREST WAS SENT ALONG WITH THE ASSESSMENT ORDER WHICH IS 3 ITA.NO.2071/DEL./2001 M/S. DELHI METRO RAIL CORPN. LTD., NEW DELHI. SUFFICIENT COMPLIANCE OF PROVISIONS OF SECTION 234B OF THE I.T. ACT AS PER THE DECISIONS OF THE HONBLE SUPREME COURT IN THE CASES OF K.K. RAY 191 ITR 634 (SC) AND CIT VS. M/S. BHAGAT CONSTRUCTION CO. PVT. LTD., 383 ITR 9 (SC). 4. ON THE OTHER HAND, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) HAS MERELY DIRECTED TO RECALCULATE THE INTEREST AS PER THE JUDGMENT OF THE HONBLE SUPREME COURT. THEREFORE, THE DEPARTMENTAL APPEAL HAS NO MERIT AND THE SAME MAY BE DISMISSED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE LD. CIT(A) DIRECTED THE A.O. TO RECALCULATE THE INTEREST AS PER THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF RANCHI CLUB LTD., (SUPRA). IN THE CASE OF CIT VS. M/S. BHAGAT CONSTRUCTION CO. PVT. LTD., (SUPRA), IT WAS HELD THAT FORM ITNS 150 CONTAIN CALCULATION OF INTEREST PAYABLE ON TAX ASSESSED. THIS BEING THE CASE, THIS FORM MUST BE TREATED AS PART OF THE ASSESSMENT ORDER, IN THE WIDER SENSE IN WHICH THE EXPRESSION HAS TO BE UNDERSTOOD IN THE CONTEST OF SECTION 143 WHICH WERE REFERRED TO IN EXPLANATION-1 TO SECTION 234B OF THE I.T. ACT. SINCE THE LD. CIT(A) DIRECTED THE A.O. TO 4 ITA.NO.2071/DEL./2001 M/S. DELHI METRO RAIL CORPN. LTD., NEW DELHI. RECALCULATE THE INTEREST, THEREFORE, A.O. SHALL TAKE INTO CONSIDERATION THE ABOVE JUDGMENT OF THE HONBLE SUPREME COURT AND SHALL ALSO VERIFY FROM ITNS 150 WITH REGARD TO CALCULATION MADE WITH REGARD TO CHARGING OF THE INTEREST UNDER SECTION 234B OF THE I.T. ACT. IN VIEW OF THE ABOVE, THERE IS NO NEED FOR FURTHER INTERFERENCE IN THE MATTER. THE APPEAL OF THE REVENUE IS DISPOSED OF IN TERMS INDICATED ABOVE AND FOR STATISTICAL PURPOSES BE TREATED AS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE DISMISSED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P.KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 10 TH MAY, 2019 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT C BENCH, DELHI 6. GUARD FILE. 5 ITA.NO.2071/DEL./2001 M/S. DELHI METRO RAIL CORPN. LTD., NEW DELHI. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.