Grandhi Enterprises Private Limited , Bangalore V. Dy. Commissioner of Income Tax , Circle-2(2), Hyderabad

ITA 263/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3166 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 28-04-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 01-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JAGADISH JOGI K
• Section: 143(3); 244A; 143(1); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 263/HYD/2019 ASSESSMENT YEAR: 2011-12 GRANDHI ENTERPRISES PRIVATE LIMITED, BANGALORE [PAN: AAACB4571A] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI JAGADISH JOGI K. AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 28-04-2021 DATE OF PRONOUNCEMENT : 14-06-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2011-12 ARISES FROM TH E CIT(A)-2, HYDERABADS ORDER DATED 29-01-2019 PASSED IN CASE NO.10079/2017-18/CIT(A)-2, IN PROCEEDINGS U/S.154 O F THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE HAS PLEADED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL: GROUND I : SHORT GRANT OF INTEREST U/S.244A: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN UPHOLDING THE ACTION OF THE DEPUTY ITA NO. 263/HYD/2019 :- 2 -: COMMISSIONER OF INCOME-TAX, CIRCLE 2(2), HYDERABAD (HEREINAFTER REFERRED TO AS AO) IN GRANTING INTEREST UNDER SECTI ON 244A AT RS.2,24,429/- AS AGAINST THE CORRECT AMOUNT OF INTE REST OF RS.2,56,492/- RESULTING IN SHORT ALLOWANCE OF INTER EST U/S 244A BY RS.32,063/- WHILE ISSUING THE INCOME TAX REFUND ORD ER AS WELL AS UPON DISPOSAL OF APPLICATION U/S 154 FILED BY THE A PPELLANT. 2. THE APPELLANT PRAYS THAT THE ASSESSING OFFICER B E DIRECTED TO ALLOW FURTHER INTEREST OF RS.32,063/- ON TAX REFUND AMOUN T IN ACCORDANCE WITH THE PROVISIONS OF SECTION 244A OF THE INCOME T AX ACT, 1961. GROUND II: SHORT GRANT OF INTEREST U/S 244A: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED CIT(APPEALS) HAS ERRED IN HOLDING THAT CLAI M OF SHORT GRANT OF INTEREST U/S 244A SHOULD HAVE BEEN MADE BY WAY OF A PPEAL AGAINST THE INTIMATION U/S 143(1) AND SUBSEQUENTLY MADE PUR SUANT TO REJECTION OF APPLICATION U/S 154 AGAINST THE ASSESS MENT ORDER U/S 143(3) CANNOT BE ALLOWED. 2. THE APPELLANT THEREFORE PRAYS THAT THE ASSESSING OFFICER BE DIRECTED TO ALLOW INTEREST U/S 244A TO WHICH THE AP PELLANT IS ENTITLED TO IN ACCORDANCE WITH THE PROVISION OF INCOME TAX A CT, 1961. GROUND III: THE APPELLANT CRAVES LEAVE TO ADD, ALTE R AND/OR AMEND ALL OR ANY OF THE FOREGOING GROUNDS OF APPEAL. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF THE LEARNED LOWE R AUTHORITIES ACTION DECLINING THE ASSESSEES INTEREST RELIEF CLAIM U/S.244 OF THE ACT. BOTH THE LEARNED REPRESENTATIVES F AILED TO DISPUTE THAT THE INSTANT LIS RAISES MORE A RECONCILIATION THAN ANY SUBSTANTIVE ISSUE REGARDING CORRECT AMOUNT OF INTER EST HAVING DIFFERENCE OF RS.32,063/- AS PER THE TAXPAYER S AND THE REVENUES STANDS; RESPECTIVELY (SUPRA). FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE TO DIRECT THE ASSESSING OFFICER TO VERIFY ALL THE CORRESPO NDING NECESSARY FACTS REGARDING THE ASSESSEES INSTANT GRIEVA NCE OF SHORT GRANT OF INTEREST U/S.244A OF THE ACT. THE ASSESSEE OR ITS LEARNED AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE ITA NO. 263/HYD/2019 :- 3 -: ASSESSING OFFICER ON OR BEFORE 31-10-2021; WITH ALL NECESSARY DETAILS; AT ITS OWN RISK AND RESPONSIBILITY TOBE PUT TO F ACTUAL VERIFICATION WITHIN THREE EFFECTIVE OPPORTUNITIES OF HE ARING. 4. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 14-06-2021 TNMM ITA NO. 263/HYD/2019 :- 4 -: COPY TO : 1.GRANDHI ENTERPRISES PRIVATE LIMITED, NO.25/1, SKI P HOUSE, MUSEUM ROAD, BANGALORE. 2.THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(2 ), HYDERABAD. 3.CIT(APPEALS)-2, HYDERABAD. 4.PR.CIT-2, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.