ITO, Chandigarh V. M/s Karanvir Singh Gossal, Mohali

ITA 383/CHANDI/2002

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68421 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-08-2013
• Assessment Year: 1996-1997
• Appeal Filed On: 30-05-2002
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMARVEER SINGH
• Keywords: Question of law
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES BCHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 383/CHD/2002 ASSESSMENT YEAR:1996-97 THE INCOME TAX OFFICER, VS SHRI KARANVIR SINGH GOSSAL, WARD 5(4), PROP. M/S GOSSON AIR CONDITIONING , CHANDIGARH. F-19, I.A. PHASE VIII, MOHALI. PAN NO. -------------- (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMARVEER SINGH RESPONDENT BY : NONE DATE OF HEARING : 12.08.2013 DATE OF PRONOUNCEMENT : 23.08.2013 O R D E R PER SUSHMA CHOWLA, JM THE PRESENT APPEAL WAS SET ASIDE PURSUANT TO THE OR DER OF THE HON'BLE SUPREME COURT OF INDIA IN CIVIL APPEAL NO. 1937 OF 2007 RELATING TO ASSESSMENT YEAR 1996-97. 2. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST CHARGING OF INTEREST UNDER SECTION 234A AND 234B OF THE INCOME- TAX ACT, 1961 (IN SHORT THE ACT) TOTALING RS. 653,663/-. THE TRIBUNAL VI DE ORDER DATED 31.03.2005 HAD UPHELD THE CHARGING OF INTEREST UNDE R SECTION 234A AND 234B OF THE ACT AT RS. 653,663/-. THE HON'BLE PUNJ AB & HARYANA HIGH COURT IN IT APPEAL NO. 502 OF 2005 VIDE JUDGEMENT D ATED 20.02.2006 HAD DISMISSED THE APPEAL OF THE ASSESSEE IN RESPECT OF THE CHARGING OF THE SAID INTEREST AND HAD DISMISSED THE APPEAL OF THE ASSESS EE HOLDING NO SUBSTANTIAL 2 QUESTION OF LAW SURVIVES IN VIEW OF THE DECISION OF THE HON'BLE HIGH COURT IN VINOD KHURANA VS CIT 253 ITR 578 (P&H). 3. THE HON'BLE SUPREME COURT IN CIVIL APPEAL NO. 19 37 OF 2007 VIDE JUDGEMENT DATED 06.09.2012, IN AN APPEAL FILED BY T HE ASSESSEE HAD HELD THAT PRIOR TO THE DECISION OF FIVE JUDGE BENCH OF H ON'BLE SUPREME COURT IN THE CASE OF CIT VS ANJUM M.H. GHASWALA & ORS. 252 ITR 1 (S.C) HOLDING THAT CHARGING OF INTEREST UNDER SECTION 234B AND 23 4C OF THE ACT WERE MANDATORY IN NATURE THOUGH EARLIER THERE WERE CONFL ICTING OPINION AMONGST VARIOUS HIGH COURTS IN INDIA. THE HON'BLE SUPREME COURT IN ASSESSEE'S CASE HELD THAT, BE THAT AS IT MAY, THE POSITION THAT EMERGES AFTER THE JUDGMENT OF THIS COURT IN ANJUM GHASWALA'S CASE [SU PRA] IS THAT IF INTEREST IS LEVIABLE IN A GIVEN CASE UNDER SECTION 234B/234C , THEN IN SUCH A CASE THAT LEVY IS MANDATORY AND COMPENSATORY IN NATURE. IT WAS FURTHER OBSERVED BY THE HON'BLE SUPREME COURT THAT THE CHIE F COMMISSIONER HAS AN AUTHORITY TO WAIVE THE INTEREST LEVIED UNDER SECTIO N 234A, 234B AND 234C OF THE ACT IN VIEW OF THE CIRCULAR ISSUED BY THE BO ARD IN F.NO. 400/234/95- IT(B), DATED MAY 23, 1996. IN VIEW THEREOF, THE IS SUE WAS SET ASIDE TO THE TRIBUNAL WITH A DIRECTION TO CONSIDER WHETHER THE A SSESSEE WOULD BE ENTITLED TO WAIVER OF INTEREST UNDER THE SAID CIRCU LAR DATED 23.05.1996. 4. IN VIEW OF THE DIRECTIONS OF THE HON'BLE SUPREME COURT, THE PRESENT ISSUES HAVE BEEN SLATED FOR HEARING BEFORE US. THE APPEAL OF THE ASSESSEE WAS FIXED FROM DATE TO DATE AND THE NOTICE OF HEARI NG WAS SENT TO THE ASSESSEE THROUGH REGISTERED A.D. THE LAST NOTICE O F HEARING DATED 27.05.2013 WAS ISSUED AND SENT TO THE ASSESSEE VIDE REGD.A.D. AND DATE OF HEARING WAS FIXED FOR 12.08.2013. HOWEVER, THE ASS ESSEE FAILED TO APPEAR BEFORE THE TRIBUNAL ON THE APPOINTED DATE OF HEARIN G NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT. IN VIEW OF THE ISSUE RA ISED IN THE PRESENT APPEAL, WE PROCEED TO DECIDE THE SAME AFTER HEARING THE LD. DR FOR THE 3 REVENUE WHO IN TURN PLACING RELIANCE ON THE CIRCULA R ISSUED BY THE BOARD DATED 23.05.1996 POINTED OUT THAT THE ASSESSEE HAS TO FULFILL CERTAIN CONDITIONS CONSEQUENT TO WHICH, THE CHIEF COMMISSIO NER OF THE INCOME-TAX MAY ORDER WAIVER OR REDUCTION OF INTEREST UNDER SEC TION 234A, 234B AND 234C OF THE ACT. 5. ON THE PERUSAL OF RECORD AND THE RELEVANT CIRCU LAR ISSUED BY THE BOARD, WE FIND THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS IN RELATION TO CHARGING OF INTEREST UNDER SECTION 234B AND 234C OF THE ACT AGGREGATING RS. 653,663/-. THE ASSESSING OFFICER PASSED THE AS SESSMENT ORDER IN THE CASE OF THE ASSESSEE UNDER SECTION 143(3) OF THE AC T. HOWEVER, THERE WAS NO SPECIFIC MENTION OF CHARGING OF INTEREST UNDER S ECTION 234B AND 234C OF THE ACT. ON THE OTHER HAND, IN FORM NO. ITNS 150 D ATED 28.03.2001, THE ASSESSING AUTHORITY HAD CLEARLY MENTIONED THE DETAI LS OF INTEREST CHARGED UNDER SECTION 234B AND 234C OF THE ACT WHICH WAS PA SSED ON THE SAME DAY WHILE PASSING THE ASSESSMENT ORDER ON 28.03.2001. THE TRIBUNAL, IN TURN RELYING ON THE RATIO LAID DOWN BY THE JURISDICTIONA L HIGH COURT IN VINOD KHURANA VS CIT (SUPRA) HAD UPHELD THE CHARGING OF I NTEREST UNDER SECTION 234B AND 234C OF THE ACT WAS MANDATORY. THE SAID O RDER OF THE TRIBUNAL WAS CONFIRMED BY THE HON'BLE PUNJAB & HARYANA HIGH COURT (SUPRA). THE HON'BLE SUPREME COURT, IN VIEW OF THE RATIO LAID DO WN BY THE FIVE JUDGE BENCH OF THE APEX COURT IN CIT VS ANJUM M.H. GHASWA LA & ORS. (SUPRA) HAD ALSO HELD THAT CHARGING OF INTEREST UNDER SECTI ON 234B AND 234C OF THE ACT WAS MANDATORY AND COMPENSATORY IN NATURE. HOWE VER, THE SAID INTEREST CHARGED UNDER SECTION 234B AND 234C OF THE ACT CAN BE WAIVED OR REDUCED BY THE CHIEF COMMISSIONER OF INCOME-TAX IN VIEW OF THE CIRCULAR DATED 23.05.1996 ISSUED BY THE BOARD. THE SAID CIRCULAR ENLISTS THE CONDITIONS UNDER WHICH THE SAID REDUCTION OR WAIVER OF INTERES T UNDER SECTION 234A, 234B OR 234C OF THE ACT CAN BE CONSIDERED. PERUSA L OF THE COPY OF THE 4 SAID CIRCULAR REFLECTS THAT THE CHIEF COMMISSIONER OF INCOME-TAX IS EMPOWERED TO REDUCE OR WAIVE SUCH INTEREST AS LEVIE D UNDER SECTION 234A, 234B OR 234C OF THE ACT IN VIEW OF THE CIRCULAR ISS UED BY THE BOARD DATED 23.05.1996, SUBJECT TO FULFILLMENT OF THE CONDITION S ENLISTED UNDER PARA 2 OF THE SAID CIRCULAR. THE ASSESSEE HAS FAILED TO APPE AR ON THE APPOINTED DATE OF HEARING NOR ANY APPLICATION HAS BEEN MOVED IN RE SPECT OF THE CONDITIONS LAID DOWN IN THE SAID CIRCULAR DATED 23.05.1996. I N VIEW THEREOF, WE UPHOLD THE LEVY OF INTEREST UNDER SECTION 234B & 23 4C OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, IN-TUR N FOLLOWING THE RATIO LAID DOWN BY THE HON'BLE APEX COURT IN ASSESSEE'S OWN CA SE THAT CHARGING OF INTEREST UNDER SECTION 234B OR 234C OF THE ACT IS M ANDATORY AND COMPENSATORY IN NATURE. HOWEVER, THE ASSESSEE IS A T LIBERTY TO APPROACH THE CONCERNED CHIEF COMMISSIONER OF INCOME-TAX FOR WAIVER OR REDUCTION OF INTEREST LEVIED UNDER SECTION 234B AND 234C OF T HE ACT IN LINE WITH THE CIRCULAR ISSUED BY THE BOARD DATED 23.05.1996 IN CA SE THE CONDITIONS ENLISTED THEREIN ARE FULFILLED. THE GROUND OF APPE AL RAISED BY REVENUE ARE, THUS ALLOWED. 6. IN VIEW THEREOF, THE APPEAL FILED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF AUGUST, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOW LA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 23 RD AUG,2013 POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH