THE ADIT(IT)-3(1), MUMBAI V. M/S. INMARSAT LTD, MUMBAI

ITA 3620/MUM/2008

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3589 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: L1
• Next Hearing Date: 08-06-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 23-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATBIR SINGH
• Section: 234B

Judgement Text

1 ITA 3620/MUM/08, M/S INMARSAT LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES L BEFORE SHRI P.M. JAGTAP, A.M. AND SHRI V. DURGA RAO , JM ITA NO. 3620/MUM/08 ASSESSMENT YEAR 2005-06 ADIT(IT) 3(1), SCINDIA HOUSE, R. NO. 136, 1 ST FLOOR, N.M. ROAD, MUMBAI 400 038. VS. M/S INMARSAT LIMITED, C/O S.R. BATLIBOI & CO. C.AS. 18 TH FLOOR, EXPRESS TOWERS, NARIMAN POINT, MUMBAI . 21. PAN AAACI 6098K APPELLANT RESPONDENT APPELLANT BY SHRI SATBIR SINGH RESPONDENT BY SHRI RAJAN R. VORA ORDER PER P.M. JAGTAP, A.M. THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) XXXIII, MUMBAI DATED 29.02.2008 AND IN THE SOLITARY GROUND RAISED THEREIN, THE REVENUE HAS CHALLENGED THE ACTION OF THE LD. CIT(A) IN DELETING THE INTEREST LEVIED BY THE A.O. U/S 234B. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE INTERES T LEVIED BY THE A.O. U/S 234B HAS BEEN DELETED BY THE LD. CIT(A) VIDE HIS IMPUGNED ORDER R ELYING ON THE ORDERS OF HIS PREDECESSOR PASSED IN ASSESSEES OWN CASE FOR EARLI ER YEARS I.E. 2000-01 TO 2004-05 WHEREIN INTEREST LEVIED BY THE A.O. U/S 234B WAS DE LETED ON THE GROUND THAT THE ASSESSEE WAS NOT REQUIRED TO PAY ADVANCE TAX AS ITS ENTIRE I NCOME WAS LIABLE FOR DEDUCTION OF TAX AT SOURCE. AS HAS BEEN BROUGHT TO OUR NOTICE BY THE L EARNED COUNSEL FOR THE ASSESSEE AT THE TIME OF HEARING BEFORE US, THE ORDERS PASSED BY THE LD. CIT(A) DELETING THE INTEREST LEVIED 2 ITA 3620/MUM/08, M/S INMARSAT LTD. BY THE A.O. U/S 234B FOR A.Y. 2000-01 TO 2004-05 HA VE ALREADY BEEN UPHELD BY THE TRIBUNAL. AS FURTHER POINTED OUT BY HIM, THE HONB LE BOMBAY HIGH COURT HAS ALSO UPHELD THE ORDER OF THE TRIBUNAL ON THIS ISSUE FOR A.Y. 2004-05 BY ITS JUDGMENT DTD. 7 TH SEPTEMBER, 2009 PASSED IN INCOME TAX APPEAL NO. 169 0 OF 2009. THE ISSUE INVOLVED IN THE PRESENT APPEAL FILED BY THE REVENUE THUS IS SQU ARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COUR T IN ASSESSEES OWN CASE FOR EARLIER YEAR AND RESPECTFULLY FOLLOWING THE SAME, WE UPHOLD THE IMPUGNED ORDER OF THE LD. CIT(A) DELETING THE INTEREST LEVIED BY THE A.O. U/S 234B. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED ON 27 TH DECEMBER, 2010. SD/- SD/- (V. DURGA RAO) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTAN T MEMBER MUMBAI, DATED 27 TH DECEMBER , 2010. RK COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) XXXIII- MUMBAI 4. THE CIT- D.I.T. (INTL. TAXN.)MUMBAI 5. THE DR BENCH, L 6. MASTER FILE // TUE COPY// BY ORDER DY/ASSTT. REGISTRAR ITAT, MUMBAI 3 ITA 3620/MUM/08, M/S INMARSAT LTD. ` DATE INITIALS 1. DRAFT DICTATED 16.12.10 SR.P.S./P.S. 2. DRAFT PLACED BEFORE AUTHOR 20.12.10 SR.P.S./P.S. 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER. - J.M./A.M. 4.DRAFT DISCUSSED/ APPROVED BY SECOND MEMBER. J.M./A.M. 5. APPROVED DRAFT COMES TO THE SR.P.S./P.S. SR.P.S./P.S. 6. KEPT FOR PRONOUNCEMENT ON SR.P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S. 8. DATE OF WHICH FILE GOES TO THE HEAD CLERK. 9. DATE OF DISPATCH OF ORDER.