Shreno Limited(Erstwhile Alembic Glass Industries Limited), Baroda V. The ACIT, Circle-4, Baroda

ITA 2452/AHD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9884 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-11-2016
• Assessment Year: 1997-1998
• Appeal Filed On: 15-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 244A; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.2452/AHD/2013 ( / ASSESSMENT YEAR : 1997-98) SHRENO LIMITED ( ERSTWHILE ALEMBIC GLASS INDUSTRIES LTD. ) ALEMBIC ROAD VADODARA 391 340 / VS. THE ACIT CIRCLE-4 BARODA $ ./ ./ PAN/GIR NO. : AABCA 7953 Q ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : MS. URVASHI SHODHAN, AR ($'*) / RESPONDENT BY : SHRI K. MADHUSUDAN, SR.DR +,*- / DATE OF HEARING 28/11/2016 ./0*- / DATE OF PRONOUNCEMENT 30/11/2016 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE PRESENT APPEAL IS DIRECTED BY THE ASSESSEE AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-III, BAROD A [CIT(A) IN SHORT] DATED 31/07/2013 FOR ASSESSMENT YEAR (AY) 19 97-98. 2. THE SUBSTANTIVE ISSUE IS DENIAL OF INTEREST ENTI TLED TO ASSESSEE UNDER SECTION 244A OF THE INCOME TAX ACT, 1961 (HEREINAFT ER REFERRED TO AS 'THE ACT') ON REFUND OF SELF ASSESSMENT TAX PAID. ITA NO.2452/AHD /2013 SHRENO LTD. VS. ACIT ASST.YEAR 1997-98 - 2 - 3. THE LD.AR FOR THE ASSESSEE MS.URVASHI SHODHAN SU BMITTED AT THE OUTSET THAT AN ASSESSMENT UNDER SECTION 143(3) OF T HE ACT WAS PASSED IN THIS CASE. THE APPEAL WAS PREFERRED AGAINST THE AF ORESAID ASSESSMENT ORDER BEFORE THE CIT(A)-BARODA. AFTER GIVING EFFEC T TO THE ORDER OF THE CIT(A), THE TAX LIABILITY WAS WORKED OUT TO RS.NIL BY THE ASSESSING OFFICER (AO). WHILE GIVING EFFECT TO THE ORDER OF THE CIT(A), THE AO FAILED TO INTER ALIA GRANT INTEREST UNDER SECTION 244A ON REFUND OF EX CESS TAX BY WAY OF SELF ASSESSMENT TAX PAID WITHOUT ASS IGNING ANY REASON. 4. AGGRIEVED BY THE AFORESAID ORDER GIVING APPEAL E FFECT DATED 28/01/2010, THE ASSESSEE MOVED AN APPLICATION UNDER SECTION 154 OF THE ACT BEFORE THE AO. THE AO REJECTED THE AFORESAID A PPLICATION VIDE ORDER DATED 20/08/2010. AGAINST THE AFORESAID RECTIFICAT ION ORDER, THE ASSESSEE MOVED AN APPEAL BEFORE THE CIT(A). THE CIT(A) REF USED TO ENTERTAIN THE PLEA OF THE ASSESSEE AND DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT DENIAL OR OTHERWISE OF REFUND OF INTERE ST ON SELF ASSESSMENT TAX UNDER SECTION 244A IS A DEBATABLE ISSUE AND NOT RECTIFIABLE UNDER SECTION 154 PROCEEDINGS. THE CIT(A) SIMULTANEOUSLY OBSERVED THAT THE RIGHT COURSE OF ACTION FOR THE ASSESSEE WAS TO FILE A REGULAR APPEAL ON MERITS AGAINST THE ORDER GIVING APPEAL EFFECT DATED 28/01/2010. 5. AS A SEQUEL TO THE AFORESAID OBSERVATIONS OF CIT (A) AND AS AN APPROPRIATE REMEDY, THE ASSESSEE FILED A REGULAR AP PEAL DATED 06/04/2012 BEFORE THE CIT(A) AGAINST THE AFORESAID ORDER GIVIN G APPEAL EFFECT PASSED ITA NO.2452/AHD /2013 SHRENO LTD. VS. ACIT ASST.YEAR 1997-98 - 3 - BY THE AO UNDER SECTION 143(3) R.W.S. 250 DATED 28/ 01/2010. THE ASSESSEE HOWEVER SIMULTANEOUSLY CARRIED THE APPEAL AGAINST THE ORDER OF THE CIT(A) DATED 21/12/2011 PASSED IN RECTIFICATIO N PROCEEDINGS BEFORE THE TRIBUNAL. THE ITAT ALLOWED THE APPEAL OF THE A SSESSEE AND REVERSED THE ORDER OF CIT(A) REFUSING RECTIFICATION. THE CL AIM THUS SOUGHT IN RECTIFICATION PROCEEDINGS WERE UPHELD. AS A RESULT , THE RELIEF SOUGHT TOWARDS INTEREST ON REFUND OF SELF ASSESSMENT TAX W AS GRANTED. THE REVENUE CARRIED THE AFORESAID ORDER OF THE ITAT BEF ORE THE HONBLE GUJARAT HIGH COURT WHICH WAS DISMISSED IN TAX APPEA L NO.129 OF 2013 ORDER DATED 28/03/2013. 6. THE LD.AR IN FURTHERANCE SUBMITTED THAT HOWEVER, THE PRESENT APPEAL PERTAINING FOR ADJUDICATION BEFORE THE ITAT IS AGAINST THE SUBSEQUENT ORDER OF THE CIT(A) DATED 31/07/2013 IN REGULAR APPEAL WHICH WAS FILED AS A REMEDIAL MEASURE TO PROTECT T HE INTEREST OF ASSESSEE IN THE SITUATION OF EVENTUAL DISMISSAL OF APPEAL I N RECTIFICATION PROCEEDINGS. THE LD.AR ACCORDINGLY SUBMITTED THAT APPROPRIATE RELIEF MAY BE GRANTED HAVING REGARD TO THE AFORESAID FACT S. 7. THE LD.DR, MR.K. MADHUSUDAN, ON THE OTHER HAND, ENDORSED THE FACTS SUBMITTED ON BEHALF OF THE ASSESSEE AND PLAC ED RELIANCE UPON THE ORDER OF CIT(A). ITA NO.2452/AHD /2013 SHRENO LTD. VS. ACIT ASST.YEAR 1997-98 - 4 - 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE FACTS OF THE CASE. IN THE INSTANT CASE, THE AS SESSEE HAS FILED RECTIFICATION APPLICATION AGAINST AN ORDER PASSED B Y AO UNDER SECTION 143(3) R.W.S. 250 DATED 28/01/2010. THE RECTIFICAT ION AS SOUGHT WAS FINALLY APPROVED BY THE ITAT IN ITS ORDER DATED 27/ 07/2012. THUS, THE GRIEVANCE OF THE ASSESSEE AGAINST THE ORDER OF THE AO GIVING APPEAL EFFECT DATED 28/01/2010 STOOD REDRESSED. NOTWITHSTANDING , THE ASSESSEE ALSO SIMULTANEOUSLY PERUSED PARALLEL REMEDY BEFORE THE CIT(A) BY A WAY OF REGULAR APPEAL. THE CIT(A) HAS REJECTED THE RELIEF SOUGHT IN REGULAR APPEAL VIDE ORDER DATED 31/07/2013. THE PRESENT AP PEAL BEFORE THE TRIBUNAL IS AGAINST THE AFORESAID SECOND ORDER OF T HE CIT(A) DATED 31/07/2013. THE RELIEF SOUGHT BY THE ASSESSEE IN T HE PRESENT APPEAL BEFORE THE TRIBUNAL IS ALSO TOWARDS CLAIM OF INTERE ST UNDER SECTION 244A ON REFUND OF SELF ASSESSMENT TAX WHICH IS AKIN TO T HE CLAIM MADE IN RECTIFICATION PROCEEDINGS. THUS, THE CAUSE OF ACTI ON ARISING IN THE PRESENT APPEAL IS IDENTICAL TO THE APPEAL BEFORE THE ITAT I N THE RECTIFICATION PROCEEDINGS. AS NOTED ABOVE, THE AFORESAID ISSUE H AS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE COORDINAT E BENCH OF TRIBUNAL IN ITA NO.2452/AHD/2013 ORDER DATED 28/11/2016. T HEREFORE, THE CAUSE OF ACTION IN THE PRESENT APPEAL HAS CEASED TO EXIST AND DOES NOT SURVIVE ANY MORE. WE ARE THUS OF THE VIEW THAT THE PRESEN T APPEAL FOR THE SAME CAUSE OF ACTION IS THUS NOT MAINTAINABLE AND IS R ENDERED INFRUCTUOUS. ITA NO.2452/AHD /2013 SHRENO LTD. VS. ACIT ASST.YEAR 1997-98 - 5 - 9. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS DIS MISSED AS INFRUCTUOUS. THIS ORDER PRONOUNCED IN OPEN COURT ON 30/11/2016 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 30/ 11 /2016 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-III, BARODA 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 29.11.16 (DICTATION-PAD 11- PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29.11.16 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.30.11.16 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.11.16 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER