Tirupati Foam Ltd., Ahmedabad V. The ACIT, Circle-8, Ahmedabad

ITA 2188/AHD/2006

• Counselvise Citation: 218820514 RSA 2006
• Duration Of Justice: 4 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 29-08-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 13-10-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: G S PATEL
• Section: 143(3); 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. N. PAHUJA, AM) ITA NO.2188/AHD/2006 A. Y.: 2000-01 TIRUPATI FOAM LTD., C.O. NAGINDAS & MANEKLAL, CA ANUPAM BUILDING, NO.2, 2 ND FLOOR, SWASIC CHAR RASTA, NAVRANGPURA, AHMEDABAD VS THE A. C. I. T., CIRCLE -8, AHMEDABAD PA NO. AAACT 5741 N (APPELLANT) (RESPONDENT) APPELLANT BY SHRI G. S. PATEL, AR RESPONDENT BY SHRI VINOD TANWANI, SR. DR DATE OF HEARING: 29-08-2011 DATE OF PRONOUNCEMENT:30-08-2011 O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-XI V, AHMEDABAD DATED 01-08-2006, FOR ASSESSMENT YEAR 2000-01. 2. THE RECORD REVEALS THAT SEVERAL APPEALS OF THE ASSESSEE FOR DIFFERENT ASSESSMENT YEARS WERE DISPOSED OF VIDE CO MMON ORDER DATED 26-10-2007 INCLUDING THE PRESENT APPEAL IN IT A NO.2188/AHD/2006. THE ASSESSEE PREFERRED MISC. APPL ICATION NO.29/AHD/2011 IN ITA NO.2188/AHD/2006 UNDER APPEAL AND SUBMITTED THAT GROUND NO.4 OF THE APPEAL OF THE ASS ESSEE HAS NOT BEEN DECIDED BY THE TRIBUNAL. THE MISC. APPLICATIO N OF THE WAS ACCORDINGLY ALLOWED VIDE ORDER DATED 31-05-2011 AND DIRECTED THE ITA NO.2188/AHD/2006 SHRI TIRUPATI FOAM LTD. VS ACIT, CIR-8, AHMEDABAD 2 REGISTRY TO FIX THE MATTER IN REGULAR COURSE FOR LI MITED PURPOSE OF ADJUDICATING GROUND NO.4 OF THE AFORESAID APPEAL. T HE APPEAL WAS THEREFORE, FIXED FOR LIMITED PURPOSE FOR ADJUDICATI ON OF GROUND NO.4 WHICH READS AS UNDER: 4. THE APPELLANTS SUBMIT THAT THE LD. CIT(A) HAS E RRED IN CONFIRMING THE INTEREST OF RS.15,220/-- CHARGED U/S 234-A THOUGH THE ASSESSMENT COMPLETED U/S. 147 WAS NOT REGULAR ASSESSMENT AND HENCE THE INTEREST CHARGED U/S. 234-A IS ILLEGAL AND HENCE BE CANCELLED. 3. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES AND PERUSED THE FINDINGS OF THE AUTHORITIES BELOW. 4. THE LEARNED COUNSEL FOR THE ASSESSEE REFERRED TO PARA 6 OF THE APPELLATE ORDER IN WHICH THE SUBMISSION OF THE ASSE SSEE HAVE BEEN REFERRED TO. THE LEARNED CIT(A) NOTED IN PARA 6 OF THE IMPUGNED ORDER THAT SUBMISSION OF THE ASSESSEE WAS THAT ASSESSMENT WAS COMPLETED U/S 147 OF THE IT ACT AND THIS ASSESSMENT IS NOT FI RST ASSESSMENT AS THE ASSESSMENTS WERE ALREADY COMPLETED U/S 143(1)/1 43(3) OF THE IT ACT AND HENCE ASSESSMENT COMPLETED U/S 147 OF THE I T ACT WERE NOT REGULAR ASSESSMENTS AND NO INTEREST SHOULD BE CHARG ED U/S 234A OF THE IT ACT. THE LEARNED CIT(A) HOWEVER, NOTED THAT IN THIS CASE NOTICE U/S 147 OF THE IT ACT WAS ISSUED ON 17-01-2004 (ACT UAL 17-11-2004) AND WAS SERVED UPON THE ASSESSEE ASKING THE ASSESSE E TO FILE THE RETURN OF INCOME WITHIN THIRTY DAYS FROM THE DATE O F RECEIPT OF THE NOTICE. HENCE, THE ASSESSEE WAS REQUIRED TO FILE WR ITTEN COMPLIANCE TO THE NOTICE BY 18-12-2004, BUT THE ASSESSEE HAS N OT COMPLIED WITH THIS NOTICE WITHIN THE DUE PERIOD. A LETTER WAS FIL ED ON 20-12-2004 ITA NO.2188/AHD/2006 SHRI TIRUPATI FOAM LTD. VS ACIT, CIR-8, AHMEDABAD 3 (ALTHOUGH LETTER WAS DATED 17-12-2004), SAYING THAT THE RETURN FILED ORIGINALLY MAY BE TREATED AS RETURN IN COMPLIANCE O F THE NOTICE. THE LEARNED CIT(A), THEREFORE, NOTED THAT IT IS CLEAR T HAT COMPLIANCE IS MADE AFTER DUE DATE I.E. 18-12-2004, THEREFORE, THE AO IS JUSTIFIED TO CHARGE INTEREST U/S 234A OF THE IT ACT FOR ONE MONT H AS PER PROVISIONS OF SECTION 234 A (3) OF THE IT ACT. THIS GROUND WAS ACCORDINGLY REJECTED. 5. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE DO NOT FIND ANY MERIT IN THIS GROUND OF APPEAL OF THE ASSESSEE. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BE FORE THE AUTHORITIES BELOW AND SUBMITTED THAT THE REASSESSME NT PROCEEDINGS U/S 147 OF THE IT ACT WAS NOT THE FIRST ASSESSMENT AS ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE IT ACT F OR THE ASSESSMENT YEAR UNDER APPEAL. THEREFORE, IT WAS NOT REGULAR ASSESSMENT AND NO INTEREST U/S 234A OF THE IT ACT C OULD BE CHARGED. THE LEARNED DR HOWEVER, RELIED UPON THE ORDER OF TH E LEARNED CIT(A). WE MAY NOTE THE RELEVANT PROVISIONS OF SECTION 234A (3) OF THE IT ACT WHICH DEALS WITH THE MATTER AND READS AS UNDER: 234A. (3) WHERE THE RETURN OF INCOME FOR ANY ASSESSMENT Y EAR, REQUIRED BY A NOTICE UNDER SECTION 148 [AFTER THE DETERMINATION OF INCOME UNDER SUB-SECTION (1) OF SE CTION 143 OR] AFTER THE COMPLETION OF AN ASSESSMENT UNDER SUB- SECTION (3) OF SECTION 143 OR SECTION 144 OR SECTIO N 147, IS FURNISHED AFTER THE EXPIRY OF THE TIME ALLOWED UNDE R SUCH NOTICE, OR IS NOT FURNISHED, THE ASSESSEE SHALL BE LIABLE TO PAY SIMPLE INTEREST AT THE RATE OF [ONE AND ONE-HAL F] PER CENT FOR EVERY MONTH OR PART OF A MONTH COMPRISED I N THE ITA NO.2188/AHD/2006 SHRI TIRUPATI FOAM LTD. VS ACIT, CIR-8, AHMEDABAD 4 PERIOD COMMENCING ON THE DAY IMMEDIATELY FOLLOWING THE EXPIRY OF THE TIME ALLOWED AS AFORESAID, AND, ( A ) WHERE THE RETURN IS FURNISHED AFTER THE EXPIRY OF THE TIME AFORESAID, ENDING ON THE DATE OF FURNISHING TH E RETURN; OR ( B ) WHERE NO RETURN HAS BEEN FURNISHED, ENDING ON THE DATE OF COMPLETION OF THE REASSESSMENT OR RECOMPUTA TION UNDER SECTION 147, ON THE AMOUNT BY WHICH THE TAX ON THE TOTAL INCOME DETERMINED ON THE BASIS OF SUCH RE-ASSESSMENT OR RECOMPUTATION EXCEEDS THE TAX ON THE TOTAL INCOME DETERMINED [UNDER SUB-SECTION (1) OF SECTION 143 OR ] ON THE BASIS OF THE EARLIER ASSESSMENT AFORESAID. 6. CONSIDERING THE ABOVE PROVISIONS IN THE LIGHT OF THE FINDINGS OF THE LEARNED CIT(A), WE DO NOT FIND ANY MERIT IN THI S GROUND OF APPEAL OF THE ASSESSEE. SINCE THE ASSESSEE DID NOT COMPLY WITH THE NOTICE U/S 147 OF THE IT ACT WITHIN THE PRESCRIBED TIME, T HEREFORE, CHARGING OF INTEREST FOR ONE MONTH WAS JUSTIFIED IN THE MATTER. GROUND NO.4 OF THE APPEAL OF THE ASSESSEE IS ACCORDINGLY DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED AS AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A. N. PAHUJA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT/- ITA NO.2188/AHD/2006 SHRI TIRUPATI FOAM LTD. VS ACIT, CIR-8, AHMEDABAD 5 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD