The Dy. CIT., Circle-1(1), Baroda V. Gujarat State Fertilizers & Chemicals Ltd., Baroda

ITA 2460/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7968 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 1997-1998
• Appeal Filed On: 05-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Section: 244A; 154

Judgement Text

ITA NO. 2460/AHD/2014 DCIT VS. GUJARAT STATE FERTILIZERS & CHEMICALS LTD A.Y. 1997-98 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND MAHAVIR PRASAD JM] I.T.A. NO.2460/AHD/2014 ASSESSMENT YEAR : 1997-98 THE DCIT .....APPELLANT CIRCLE-1(1), BARODA VS. GUJARAT STATE FERTILIZERS & CHEMICALS LTD .RESPONDENT PO FERTILIZER NAGAR, DIST. BARODA 391 750 [PAN : AAACG 7996 C] APPEARANCES BY: SONIA KUMAR FOR THE APPELLANT SANJAY R SHAH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 04.12.2017 DATE OF PRONOUNCING THE ORDER : 13.12.2017 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE APPELLANT ASSESSING O FFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 4 TH JUNE 2014, PASSED BY THE CIT(A)-I, BARODA, IN THE MATTER OF ORDER DATED 25.02.2013 UNDER SECTION 154 OF THE INCOME-TAX ACT PASSED BY THE ASSESSING OFFICER, FOR THE ASSESSMENT YEAR 1997 -98. 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOW S: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN DIRECTING THE AO TO ALLOW THE INTEREST U/S 244A OF THE ACT ON REFUND OF INTEREST UNDER SECTION 220(2) OF T HE ACT WITHOUT APPRECIATING THE FACT THAT AS PER THE PROVISIONS OF SECTION 244A OF THE ACT, THE ASSESSEE IS NOT ENTITLED FOR INTEREST ON REFUND OF ANY INTEREST AS ALSO HELD BY THE HONBLE SUPREME COURT IN THE CASE OF CI T VS. GUJARAT FLUORO CHEMICALS 358 ITR 291 (SC) [2013]. 2. THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND OR A LTER THE ABOVE GROUNDS AS MAY BE DEEMED NECESSARY. ITA NO. 2460/AHD/2014 DCIT VS. GUJARAT STATE FERTILIZERS & CHEMICALS LTD A.Y. 1997-98 PAGE 2 OF 2 3. LEARNED REPRESENTATIVES FAIRLY AGREE THAT WHATE VER WE DECIDE IN ITA NO.2459/AHD/2014, WHICH WAS HEARD ALONG WITH THIS A PPEAL, WILL APPLY MUTATIS MUTANDIS HERE AS WELL. VIDE OUR ORDER OF EVEN DATE, WE HAVE DISMISSED THE SAID APPEAL ON THE BASIS OF FOLLOWING REASONING. 6. WE FIND THAT SHORT GRIEVANCE OF THE REVENUE, AS EVIDENT FROM THE GROUND OF APPEAL REPRODUCED BY US EARLIER, IS THAT IN THE LIG HT OF HONBLE SUPREME COURTS JUDGMENT IN THE CASE OF CIT VS. GUJARAT FLUORO CHEM ICALS [(2013) 358 ITR 291 (SC)], INTEREST UNDER SECTION 244A CANNOT BE GRANTE D IN RESPECT OF INTEREST REFUNDED WHICH WAS WRONGLY CHARGED UNDER SECTION 23 4B EARLIER. HOWEVER, ON A PERUSAL OF THE SAID ORDER, WE FIND THAT HONBLE SUP REME COURT WAS DEALING WITH INTEREST ON DELAYED PAYMENT OF INTEREST BY THE ASSE SSING OFFICER. SUCH AN INTEREST ON INTEREST WAS HELD TO COMPENSATION FOR G REAT PREJUDICE CAUSED TO THE ASSESSEE, WHEN PAYMENT WAS INORDINATELY DELAYED BY DECADES, AND NOT A MATTER OF COURSE IN COMPUTATION OF STATUTORY INTEREST PAYA BLE BY THE ASSESSING OFFICER. INTEREST REFUNDED BY THE ASSESSING OFFICER, ON ACCO UNT OF INCORRECT LEVY EARLIER, IS CERTAINLY NOT THE SAME THING AS A STATUTORY INTERES T ON REFUND BY THE ASSESSING OFFICER. THE RELIANCE PLACED ON THIS DECISION IS TH US WHOLLY MISPLACED AND IS REJECTED. NO OTHER ISSUE WAS RAISED IN APPEAL, OR EVEN OTHERWISE, BEFORE US. WE, THEREFORE, DECLINE TO INTERFERE IN THE MATTER. 4. WE SEE NO REASONS TO TAKE ANY OTHER VIEW OF THE MATTER IN THE PRESENT APPEAL. THEREFORE, FOR THE SAME REASONS, AS REPRODUCED ABOV E, THE GRIEVANCE OF THE ASSESSING OFFICER IS REJECTED. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 13 TH DAY OF DECEMBER, 2017. SD/- SD/- MAHAVIR PRASAD PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 13 TH DAY OF DECEMBER, 2017 **BT* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD