BANK OF INDIA, MUMBAI V. ASST CIT 2(1), MUMBAI

ITA 2999/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2969 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 22-07-2016
• Assessment Year: 2000-2001
• Appeal Filed On: 30-04-2014
• Court: TRIBUNAL
• Department Lawyers: D V SINGH
• Keywords: Rectification of order
• Section: 244A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 2999 /MUM/ 20 1 4 (ASSESSMENT YEAR 200 0 - 0 1 ) I.T.A. NO. 3000/MUM/2014 (ASSESSMENT YEAR 2001 - 02) BANK OF INDIA 8 TH FLOOR STAR HOUSE TAXATION D EPARTMENT BANDRA KURLA COMPLEX BANDRA EAST MUMBAI - 400 051. VS. ACIT - 2(1) AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACB0472C ASSESSEE BY SHRI C. NARESH DEPARTMENT BY SHRI D.V. SINGH DATE OF HEARING 26.8 . 2 01 6 DATE OF PRONOUNCEMENT 14 .9 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - BOTH THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDERS PASSED BY LD CIT(A) - 4, MUMBAI AND THEY RELATE TO THE ASSESSMENT YEARS 2000 - 01 AND 2001 - 02. BOTH THE APPEALS WERE HEARD TOGETHER AND HENCE THEY ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE IS A PUBLIC SECTOR BANK ENGAGED IN BANKING BUSINESS AND OTHER RELATED FINANCIAL ACTIVITIES. BOTH THESE APPEALS ARISE O UT OF THE RECTIFICATION ORDER PASSED BY THE AO U/S 154 OF THE ACT. IN BOTH THE YEARS, THE ASSESSEE HAS URGED FOLLOWING ISSUES: - (A) COMPUTATION OF INTEREST PAYABLE TO THE ASSESSEE U/S 244A OF THE ACT. BANK OF INDIA 2 (B) APPLICABILITY OF PROVISIONS OF SEC. 115JA OF TH E ACT. 3. WITH REGARD TO THE LEGAL ISSUE RELATING TO THE APPLICABILITY OF THE PROVISIONS OF SEC. 115JA OF THE ACT URGED IN AY 2000 - 01, THE LD A.R SUBMITTED THAT THE SAME HAS BEEN CONSIDERED AND DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL WHILE DI SPOSING OF THE APPEAL FILED AGAINST THE QUANTUM ASSESSMENT ORDER, VIDE THE ORDER DATED 29 - 01 - 2016 PASSED IN ITA NO.2883 TO 2885/M/2013. ACCORDINGLY THE GROUNDS RELATING TO THIS ISSUE HAS BECOME INFRUCTUOUS AND ACCORDINGLY WE DISMISS THE SAME. 4. WITH REGARD TO THE LEGAL ISSUE RELATING TO THE APPLICABILITY OF THE PROVISIONS OF SEC. 115JA OF THE ACT URGED IN AY 2001 - 02, WE NOTICE THAT THE SAME HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL IN THE ORDER DATED 09 - 04 - 2014 PASSED IN ITA NO.1498/ MUM/2011 FOR AY 2001 - 02 AGAINST THE ORIGINAL ASSESSMENT PROCEEDING ORDERS. HENCE THE ABOVE SAID LEGAL ISSUE BECOMES INFRUCTUOUS AND ACCORDINGLY WE DISMISS THE SAME. 5. WITH REGARD TO THE ISSUE RELATING TO CHARGING OF INTEREST U/S 244A OF THE ACT I N BOTH THE YEARS, THE LD A.R SUBMITTED THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THIS BENCH OF TRIBUNAL IN THE ASSESSEES OWN CASE RELATING TO AY 2005 - 06 IN ITA NO.3002/MUM/2014 AND IT WAS RESTORED TO THE FILE OF THE AO WITH CERTAIN DIRECTIONS. 6. WE H EARD LD D.R AND PERUSED THE RECORD. WE NOTICE THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THIS BENCH OF TRIBUNAL IN THE ASSESSEES OWN CASE REFERRED SUPRA AND THE SAME WAS DECIDED AS UNDER: - 5. THE NEXT ISSUE CONTESTED BY THE ASSESSEE RELATES TO THE GRA NTING OF INTEREST U/S 244A OF THE ACT. THE LD A.R SUBMITTED THAT THE ASSESSEE HAS BEEN RECEIVING REFUNDS UPON PASSING OF ORDERS BY THE APPELLATE AUTHORITIES OR UPON PASSING OF ORDERS U/S 154 OF THE ACT. THE LD A.R SUBMITTED THAT THE AO HAS MADE ADJUSTMEN T OF REFUND (CONSISTING OF TAX AND INTEREST) BANK OF INDIA 3 ALREADY GRANTED AGAINST THE REFUND OF TAX DUE IN EACH OF THE SUCCESSIVE ORDERS. THE LD A.R SUBMITTED THAT THE ENTIRE AMOUNT OF REFUND (BOTH TAX AND INTEREST) GRANTED SHOULD BE FIRST ADJUSTED AGAINST THE INTERES T PORTION THAT HAS BECOME DUE AND THEN THE REMAINING AMOUNT, IF ANY, SHOULD BE ADJUSTED AGAINST THE TAX PORTION OF THE REFUND THAT HAS BECOME DUE. IN SUPPORT OF HIS CONTENTIONS, THE LD A.R PLACED RELIANCE ON THE DECISION RENDERED BY THE TRIBUNAL IN THE ASS ESSEES OWN CASE IN ITA NO.5444 TO 5446/MUM/2013 DATED 22.12.2014 AND ALSO THE DECISION RENDERED BY THE TRIBUNAL IN THE CASE OF UNION BANK OF INDIA (ITA NO.571 & 574/MUM/2013 DATED 23.6.2014). 6. WE HEARD THE PARTIES ON THIS ISSUE. SINCE IT IS MATTER INVOLVING COMPUTATION OF ELIGIBLE AMOUNT OF INTEREST U/S 244A OF THE ACT, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH EXAMINATION AT THE END OF THE AO. IN THE DECISIONS RELIED UPON BY THE ASSESSEE, THE TRIBUNAL HAS FOLLOWED THE DECISION RENDERED BY HONBLE DELHI HIGH COURT IN THE CASE OF INDIA TRADE PROMOTION ORGANISATION VS. CIT (361 ITR 646) AND ACCORDINGLY GIVEN DIRECTION TO THE AO TO FOLLOW THE SAID DECISION. CONSISTED WITH THE VIEW TAKEN BY THE TRIBUNAL, WE RESTORE THIS ISSUE TO HIS FILE WITH T HE DIRECTION TO EXAMINE THIS ISSUE AFRESH BY FOLLOWING THE DECISION RENDERED IN THE CASE OF INDIA TRADE PROMOTION ORGANISATION (SUPRA). CONSISTENT WITH THE VIEW TAKEN IN THE ABOVE SAID APPEAL, WE RESTORE THIS ISSUE TO THE FILE OF THE AO IN BOTH THE YEARS WITH SIMILAR DIRECTIONS. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE TREATED AS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 14 . 9 .2016 SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : / 9 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI BANK OF INDIA 4 6. GUARD FILE. BY ORDER, //T RUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS