A.C.I.T. 2(3), MUMBAI V. THE TATA POWER CO. LTD., MUMBAI

ITA 2505/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78742 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2014
• Appeal Filed By: Department
• Bench Allotted: E
• Next Hearing Date: 28-04-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 16-04-2012
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Assessee Lawyers: DINESH VYAS
• Section: 244A

Judgement Text

E IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIVEK VARMA, JM ./I.T.A. NO.2505/M/2012 ( / ASSESSMENT YEAR: 2001 - 2002 ) ACIT - 2(3), R.NO.552, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20. / VS. THE TATA POWER CO. LTD., BOMBAY HOUSE, 24, HOMI MODY STREET, FORT, MUMBAI - 01. ./ PAN : AAACT 0054 A ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI GIRIJA DAYAL , DR / RESPONDENT BY : SHRI DINESH VYAS / DATE OF HEARING : 28.04.2014 / DATE OF PRONOUNCEMENT : 28.04.2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE ON 16.4.2012 IS AGAINST THE ORDER OF THE CIT (A) - 6, MUMBAI DATED 20.1.2012 FOR THE ASSESSMENT YEAR 2011 - 2012. 2. IN THIS APPEAL, REVENUE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) FAILED TO APPRECIATE THAT AS PER THE PROVISION OF SECTION 244A, THE ASSESSEE WILL BE ENTITLED TO SIMPLE INTEREST, WHEREAS THE DIRECTION GIVEN BY THE LD CIT (A) IS CONTRARY TO THE PROVISION. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT (A) ERRED IN DIRECTING THE AO TO DEDUCT ONLY THE TAX ELEMENT FROM THE REFUND GENERATED EARLIER EXCLUDING THE INTEREST PORTION CONTRARY THE INTENTION OF THE LEGISLATION. THIS WOULD LEAD TO EXCESS GRANT OF INTEREST TO THE TUNE OF RS. 2,94,86,514/ - . 3. AT THE OUTSET, SHRI DINESH VYAS , LD COUNSEL FOR THE ASSESSEE FILED A COPY OF THE ORDER OF THE TRIBUNAL FOR THE AY 1997 - 98 VIDE ITA NO.6863/M/2011, DATED 6.3.2013 AND MENTIO NED THAT THE ISSUE RAISED IN THE GROUNDS OF THE REVENUE RELATES TO THE MANNER OF COMPUTATION OF INTEREST U/S 244A OF THE ACT. AN IDENTICAL ISSUE CAME UP FOR ADJUDICATION IN THE SAID ASSESSMENT YEAR VIDE GROUND NO.2 OF THE SAID 2 APPEAL. IT WAS ADJUDICATED BY THE TRIBUNAL VIDE ITS ORDER DATED 6.3.2013 AND PARA 5.1 OF THE SAID ORDER OF THE TRIBUNAL IS RELEVANT IN THIS REGARD. IT IS THE ORDER OF THE TRIBUNAL THAT THE ORDER OF THE CIT (A) IN THAT ASSESSMENT YEAR (1997 - 98) IS JUSTIFIABLE. AS PER THE CIT (A) , A O WAS DIRECTED TO EXCLUDE THE INTEREST ELEMENT OF REFUND EARLIER GRANTED AS THE PROVISIONS OF INCOME TAX ACT DO NOT PERMIT TO INCLUDE INTEREST WITHIN REFUND IN THE GIVEN SITUATION WHILE DEDUCTING THE AMOUNT OF REFUND ISSUED EARLIER AND THEREFORE, GROU ND NO.2 IS HEREBY DISMISSED. ACCORDINGLY, ORDER OF THE CIT (A) IS HEREBY UPHELD. 4. ON PERUSING OF THE FACTS, WE FIND THAT THE GROUNDS AS WELL AS THE FACTS OF THE APPEAL DECIDED BY THE TRIBUNAL VIDE ITS ORDER DATED 6.3.2013 ARE IDENTICAL TO THAT OF TH E PRESENT APPEAL. AFTER HEARING THE PARTIES, WE FIND THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. ACCORDINGLY, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE CIT (A). ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED . 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2014. S D / - S D / - (VIVEK VARMA) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 28.4.2014 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . 3 //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI