ACIT, New Delhi V. M/s The Delhi State Co-op Bank Ltd., New Delhi

ITA 2741/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61695 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 14-05-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 27-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SL GUPTA
• Keywords: Tax effect
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H: NEW DELHI BEFORE SHRI A.N. PAHUJA, ACCOUNTANT MEMBER AND SHRI C.M. GARG, JUDICIAL MEMBER ITA NO. 2741/DEL/2011 ASSESSMENT YEAR: 2002-03 ACIT, CIRCLE 30(1), ROOM NO. 106, DRUM SHAPE BUILDING, NEW DELHI. VS. THE DELHI STATE CO-OP BANK LTD., 31, N.S. MARG, DARYA GANJ, NEW DELHI. AAAAT9998D (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PRADEEP KUMAR, SR. DR RESPONDENT BY : SH. S.L. GUPTA, CA O R D E R PER C.M. GARG, J.M. THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE ON 2 7.05.2011 AGAINST THE ORDER VIDE DATED 22.03.2011 OF THE COMM ISSIONER OF INCOME TAX (APPEALS) XXV, NEW DELHI. FOR THE A.Y. 2002- 03, DELETING THE ADDITION OF RS. 6,78,750/- MADE BY THE ASSESSING OF FICER ON ACCOUNT OF INTEREST EARNED ON INCOME TAX REFUND ARISE DUE TO D ELAY OF REFUND BY THE I.T. DEPARTMENT. 2. THE GROUNDS OF APPEAL ARE READ AS UNDER: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) HAS ERRED IN ALLOWING DEDUCTION U/S 80P(2) ON INTER EST ON INCOME TAX REFUND IGNORING THE FOLLOWING FACTS: A. THAT THE INTEREST ON INCOME TAX REFUND ARISES D UE TO DELAY BY THE INCOME-TAX DEPARTMENT IN THE ISSUE OF REFUND OF EXC ESS TAXES PAID AND NOT BY ANY OF THE ACTIVITIES, INCLUDING BANKING , MENTIONED IN SECTION 80P(2) OF THE INCOME-TAX ACT, 1961. ITA NO. 2741/D/2011 2 B. NO ACTIVITY OR EFFORT BY THE TAX PAYER IS REQUI RED FOR EARNING INTEREST ON INCOME TAX REFUNDS. SIMILARLY NO ACTIV ITY OR EFFORT BY THE TAX PAYER DETERMINES THE INTEREST ON REFUND ISSUED BY THE INCOME TAX DEPARTMENT. C. THE INTEREST ON INCOME TAX REFUND IS TAXABLE UND ER THE HEAD INCOME FROM OTHER SOURCES. D. THE INTEREST ON INCOME TAX REFUND IS NOT FROM TH E ACTIVITIES OF CARRYING OUT THE BUSINESS OF BANKING OR PROVIDING C REDIT FACILITIES TO THE MEMBERS OF THE CO-OPERATIVE SOCIE TY AND THEREFORE THE ATTRIBUTION IS NOR IN RESPECT OF THE ACTIVITIES OF THE ASSESSEE. E. THE HONBLE ITAT HAS NOT FOLLOWED ITS ORDER IN T HE CASE OF THE ASSESSEE FOR A.Y. 2001-02 THEREFORE THE ORDER OF CI T(A) IS PERVERSE IN AS MUCH AS IT DOES NOT TAKE NOTE OF EAR LIER ORDER OF ITAT ON THE SAME ISSUE IN THE CASE OF THE SAME ASSE SSEE. 2. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUNDS OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 3. THE ABOVE GROUNDS OF APPEAL TAKEN BY THE ASSESSE E ARE NOT IN CONSOLENCE WITH THE RULE 8 OF THE ITAT RULES AS THE Y ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. THE SOLE ISSUE OR GROUND RAISED BY THE ASSESSEE IN THIS APPEAL IS WHETHER DEDUCTION U/S 80P(2)(A)( I) OF THE ACT IS ADMISSIBLE ON THE AMOUNT OF INTEREST ON THE REFUND OF TAX RECE IVED U/S 244A OF THE ACT. 4. AT THE OUTSET, WE OBSERVE THAT ADMITTEDLY, THE A O MADE AN ADDITION OF RS. 6,78,750/- IN THE ASSESSMENT ORDER VIDE DATED 3 1.12.2009 AND THE LD. CIT(A) DELETED THE SAME PASSING THE IMPUGNED ORDER DATED 22.03.2011. BEING AGGRIEVED BY THE SAID ORDER OF LD. CIT(A) THE REVENUE FILED THIS APPEAL ON 27.05.2011. 5. WE FURTHER TAKE NOTE OF THE CIRCULAR NO. 3/2011 DATED 9.2.2011 OF THE CBDT ISSUED U/S 268A(1) OF THE ACT, HAVE FIXED MONE TARY LIMITS UPTO RS. 3,00,000/- FOR FILING APPEALS BY THE REVENUE. IN T HIS APPEAL, THE TAX EFFECT IS ADMITTEDLY BELOW THE ABOVE FIXED LIMIT. THEREFORE, THIS APPEAL BY THE REVENUE IS NOT MAINTAINABLE. ITA NO. 2741/D/2011 3 6. IN THE RESULT, THIS APPEAL BY THE REVENUE IS DIS MISSED IN LIMINE. ORDER PRONOUNCED IN THE OPEN COURT ON 18.05.2012 SD/- SD/- (A.N. PAHUJA) ACCOUNTANT MEMBER (C.M. GARG) JUDICIAL MEMBER DATED: 18.05.2012 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR