M/s. RAJ PETROLEUM PRODUCTS LTD., MUMBAI V. ACIT - 7(2), MUMBAI

ITA 2971/MUM/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1599 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: K
• Next Hearing Date: 24-09-2009
• Assessment Year: 1999-2000
• Appeal Filed On: 17-04-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 244A; 54; 154

Judgement Text

INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH: K, MUMBAI. BEFORE SHRI R.S.SYAL, ACCOUNTANT MEMBER AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO.2971(MUM)/2007 (ASSESSMENT YEAR: 1999-2000) M/S. RAJ PETROLEUM PRODUCTS LTD. 5/7, SYED STREET, MUMBAI-400 009. PAN NO.AACR3172M APPELLANT VS. DEPUTY COMMISSIONER OF INCOME-TAX 7(2), ROOM NO.670, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400 020. RESPONDENT AND ITA NO.7246(MUM)/2007 (ASSESSMENT YEAR: 1999-2000) DEPUTY COMMISSIONER OF INCOME-TAX 7(2), MUMBAI. APPELLANT VS. M/S. RAJ PETROLEUM PRODUCTS LTD. MUMBAI. RESPONDENT ASSESSEE BY : SHRI VIJAY MEHTA. REVENUE BY : SHRI HARGOVIND SINGH. PER V.DURGA RAO, JM: THESE CROSS APPEALS, ONE BY THE ASSESSEE AND ANOTH ER BY THE REVENUE, ARE DIRECTED AGAINST THE ORDERS OF THE CIT(APPEALS)- VII, MUMBAI, DATED 15-1-2007 AND 14-9-2007 FOR THE ASSESSMENT YEAR 1999-2000. ITA 2971 & 7246/MUM/2007 PAGE 2 OF 4 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-C OMPANY FILED RETURN OF COME DECLARING TOTAL INCOME OF RS.1 8,80,190/-. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE INCO ME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT] DE TERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.32,63,134/-. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(APPEALS ) WHO GRANTED PARTIAL RELIEF. ON FURTHER APPEAL BY THE A SSESSEE, THE TRIBUNAL GRANTED RELIEF TO THE ASSESSEE. THE AO PA SSED ORDER GIVING EFFECT TO THE TRIBUNAL ORDER AND GRANTED REF UND OF RS.7,13,775/-. WHILE GIVING EFFECT TO THE TRIBUNAL ORDER, THE AO DID NOT GRANT INTEREST U/S 244A ON THE AMOUNT OF RE FUND OF SELF- ASSESSMENT TAX. BEING AGGRIEVED ASSESSEE WENT ON A PPEAL BEFORE THE CIT(APPEALS). THE CIT(APPEALS), BY ORDE R DATED 15-1-2007, DISMISSED THE APPEAL HOLDING THAT THERE WAS NO PROVISION FOR APPEAL FOR SECTION 244 OF THE ACT AND THE REMEDY IN SUCH CASES WAS ONLY REVISION OR RECTIFICATION. AGA INST THE SAID ORDER OF THE CIT(APPEALS), THE ASSESSEE HAS COME IN APPEAL BEFORE THIS TRIBUNAL. 3. THE ASSESSEE HAD ALSO FILED AN APPLICATION U/S 1 54 BEFORE THE AO, SEEKING FOR RECTIFICATION OF ASSESSM ENT ORDER AND GRANT OF INTEREST U/S 244A OF THE ACT. THE AO, BY ORDER DATED 4-4-2007 HELD THAT THERE WAS NO MISTAKE APPARENT FR OM RECORD REQUIRING RECTIFICATION AND REFUSED TO GRANT REFUND . AGAINST THE SAID ORDER PASSED OF THE AO, THE ASSESSEE WENT IN A PPEAL BEFORE THE CIT(APPEALS). THE CIT(APPEALS), BY ORDER DATED 14-9-2007, HELD THAT THE ASSESSEE IS ENTITLED TO INTEREST U/S 244A ON REFUND ITA 2971 & 7246/MUM/2007 PAGE 3 OF 4 OF TAX PAID U/S 140A OF THE ACT. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED MAT ERIAL ON RECORD. THE SHORT ISSUE INVOLVED IN THIS APPEA L IS WHETHER ASSESSEE IS ENTITLED TO INTEREST ON REFUND OF SELF- ASSESSMENT TAX PAID U/S 140A. THE HONBLE MADRAS HIGH COURT HAS C ONSIDERED THIS ISSUE IN THE CASE OF CIT VS. CHOLAMANDALAM INVESTMENT & FINANCE CO. LTD. , (2007)(211 CTR 384) WHEREIN IT WAS HELD THAT EVEN ON REFUND OF TAX PAID U/S 140A ON SELF-ASSESSM ENT, THE ASSESSEE IS ENTITLED TO INTEREST. THE SAME ISSUE W AS CONSIDERED BY MUMBAI BENCH B OF THE TRIBUNAL IN THE CASE OF ADDL. CIT VS. GRINDWELL NORTON LTD. (2006) 100 ITD 245(MUM). RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE MADRAS HIGH C OURT IN THE CASE OF CHOLAMANDALAM INVESTMENT & FINANCE CO. LTD., (SUPRA) AND ALSO THE ORDER OF THE MUMBAI BENCH OF THE TRIBU NAL IN THE CASE OF GRINDWELL NORTON LTD. (SUPRA), WE UPHOLD THE ORDER OF THE CIT(APPEALS) DATED 14-9-2007 DIRECTING FOR GRANT OF INTEREST TO THE ASSESSEE AND DISMISS THE APPEAL FILED BY THE RE VENUE. IN THIS VIEW OF THE MATTER, THE APPEAL FILED BY THE ASSESSE E IS INFRUCTUOUS AND IS ALSO DISMISSED. 5. IN THE RESULT, BOTH THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12TH NOVEM BER, 2009. SD/- SD/- (R. S. SYAL) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI : DATED : 12TH NOVEMBER, 2009. EKS* TRUE COPY ITA 2971 & 7246/MUM/2007 PAGE 4 OF 4 COPY TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. CIT- CONCERNED 4. CIT(A)- CONCERNED 5. DEPARTMENTAL REPRESENTATIVE K BENCH BY ORDER ASST REGISTRAR, ITAT, MUMBAI