Haldia Petrochemicals Limited, Kolkata V. DCIT, Circle - 59(TDS), Kolkata, Kolkata

ITA 234/KOL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6331 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 17-02-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: HARAKAMAL CHAKRABORTY

Judgement Text

ITA NO.234/KOL/2016 HALDIA PETROCHEMICALS LTD. A.Y. 2010-11 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SMT. MADHUMITA ROY, JM ] ITA.NO.234/KOL//2016 ASSESSMENT YEAR : 2010-11 HALDIA PETROCHEMICALS LIMITED -VERSUS- D.C.I. T., CIRCLE-59 (TDS), KOLKATA KOLKATA (PAN: AAACH 7360 R) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI HARAKAMAL CHAKRABORTY, AR FOR THE RESPONDENT: SHRI SALLONG YADEN, ADDL. CIT DATE OF HEARING : 31.05.2018. DATE OF PRONOUNCEMENT : 01.06.2018. ORDER PER BENCH THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX-(A)-24, KOLKATA RELATI NG TO A.Y.2010-11. 2. THE ASSESSEE IS A PUBLIC SECTOR COMPANY. THE IS SUE BEFORE US IS LEVY OF INTEREST U/S 201(1)(1) OF THE INCOME TAX ACT, 1961 (ACT) ON LATE DEDUCTION OF REMITTANCE OF TAX DEDUCTION AT SOURCE. 3. AFTER HEARING THE RIVAL CONTENTIONS WE FIND THA T THE ISSUE IS IN A NARROW COMPASS I.E. WHETHER THE INTEREST ON DELAY OF REMITTANCE OF TAX DEDUCTED AT SOURCE BY THE ASSESSEE TO BE LEVIED, HAS BEEN CALCULATED BY THE REVENUE UPTO THE DATE OF DEPOSIT OF THE TAX DEDUCTOR AT SOURCE, FROM, THE DUE DATE ON WHICH THE TAX DEDUCTED AT SOURCE HAD TO BE DEPOSITED. THE ASSESSEE S CASE IS THAT THE RECIPIENTS OF THE AMOUNTS I.E. TOYO ENGINEERING AND DEVELOPMENT CONSULTANTS P. LTD HAV E DISCLOSED THESE AMOUNTS OF RECEIPTS AS THEIR INCOME AND FILED THE RETURN OF IN COME BY PAYING NECESSARY TAXES AND UNDER THIS CIRCUMSTANCES THE INTEREST FOR DELAY IN REMITTING THE TDS SHOULD BE CALCULATED UPTO 31 ST MARCH OF THAT YEAR. IN OUR VIEW, IF THE ASSESSEE H AS DEDUCTED TAX AT SOURCE AND HAS NOT REMITTED THE SAME TO THE GOVERNM ENT WITHIN THE PERIOD MENTIONED ITA NO.234/KOL/2016 HALDIA PETROCHEMICALS LTD. A.Y. 2010-11 2 IN THE ACT, IT IS THE CASE OF LOSS TO THE REVENUE T O THE GOVERNMENT AND UNDUE GAIN TO THE ASSESSEE, AS THE MONEY IN QUESTION DOES NOT BEL ONG TO THE ASSESSEE. IN SUCH CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THA T THE SECOND PROVISO TO SECTION 40(A)(IA) DOES NOT COME INTO PLAY. IF THE ASSESSEE HAD NOT DEDUCTED TAX AT SOURCE THE ARGUMENTS OF THE ASSESSEE HAS FORCE. THUS IT DOES N OT APPEAR TO BE THE FACTS OF THIS CAS. WE THEREFORE SET ASIDE THIS ISSUE TO THE FILE OF TH E AO TO RECALCULATE THE INTEREST LEVIABLE BASED ON OUR OBSERVATIONS ABOVE. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 01.06.2018. SD/- SD/- [MADHUMITA ROY] [ J.SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 01.06.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.HALDIA PETROCHEMICALS LIMITED C/O BENGAL ECO INTE LLIGENT PARK (TECHNICAL), TOWER- 1, BLOCK-EM, PLOT NO.3, SALT LAKE CITY, SEC-V, 3 RD FLOOR, KOLKATA-91. 2. D.C.I.T., CIRCLE-59(TDS) KOLKATA. 3. C.I.T.(A)- 24, KOLKATA 4. C.I.T-(TDS), KO LKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES ITA NO.234/KOL/2016 HALDIA PETROCHEMICALS LTD. A.Y. 2010-11 3