DCIT 2 (3), MUMBAI V. TATA SONS LTD, MUMBAI

ITA 3851/MUM/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2455 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 1990-1991
• Appeal Filed On: 29-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN MS AAR TI VISSANJI
• Assessee Lawyers: IN CIRCUMSTANCES OF CA SE; FACTS OF CASE
• Section: 244A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , AM AND SHRI AMARJIT SINGH, JM / I .T.A. NO. 3851 / MUM/ 20 1 4 ( / ASSESSMENT YEAR: 1990 - 91 ) DCIT - 2(3), MUMBAI R.NO.552, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. RO AD, MUMBAI - 400020. . / VS. M/S. TATA SONS LTD. BOMBAY HOUSE, 24, HOMI MODI STREET, FORT, MUMBAI - 400001. ./ ./ PAN/GIR NO. : AAACT 4060 A ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING : 19 . 0 7 .201 8 / DATE OF PRONOUNCEMENT : 29.08 . 2018 / O R D E R PER AMARJIT SINGH, J M: THE REVENUE HAS FILED THE PRESENT AP PEAL AGAINST THE ORDER DATED 17 . 0 2 .20 1 4 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 6 , MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO THE AY. 1990 - 91 . 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: - ON THE FACT AND IN THE CIRCUMST ANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN RELIEF 10 THE ASSESSEE TO THE EXTENT IMPUGNED IN THE GROUNDS ENUMERATED BELOW: 1. THE ORDER OF THE C1T(A) IS OPPOSED IS LAW AND FACTS OF THE CASE,' REVENUE BY: S HRI V. JUSTIN ASSESSEE BY : MS. AAR TI VISSANJI ITA. NO. 3851 /M/20 1 4 A.Y. 1990 - 1991 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW. THE LD. CIT (APPEAL) FAILED TO APPRECIATE THAT AS PER THE PROVISION OF SECTION 244A, THE ASSESSEE WILL THE ENTITLED TO SIMPLE INTEREST, WHEREAS THE DIRECTION GIVEN BY THE LD, CIT(A) IS CONTRARY TO THE PROVISION. 3. FOR THESE AND OTHER GR OUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE DECISION OF THE C1T(A) MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED,' 3 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSMENT OF THE ASSESSEE WAS COMPLETED U/S 133(3) OF THE ACT ON 01.08.1993 BY ASSESSI NG THE TOTAL INCOME OF THE ASSESSEE TO THE TUNE OF RS. 6,48,83,390/ - FOR THE A.Y. 1990 - 91. THEREAFTER, THE MATTER WENT UP TO THE HONBLE ITAT AND THE HONBLE ITAT DECIDED THE MATTER CONTROVERSY BETWEEN THE PARTIES IN ITA. NO. 3461/M/2009 . T HE ORDER GIVING E F F E CT TO THE SAID ITAT ORDER DATED 28.01.2011 WAS PASSED ON 16.06.2011 IN WHICH THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED TO THE TUNE OF RS. 18,28,264/ - VIDE ORDER U/S 154 OF THE ACT DA TED 20.02.2007. SUBSEQUENTLY AN ANOTHER ORDER DATED 01.05.2012 WAS P ASSED U/S 154 OF THE ACT 1961 IN WHICH THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED TO THE TUNE OF RS. 1,55,07,781/ - . IN THE SAID ORDER INTEREST U/S 244A OF THE ACT WAS WORKED OUT WHICH WAS NOT ACCEPTABLE TO THE ASSESSEE, THEREFORE, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO ALLOWED THE CLAIM OF T HE ASSESSEE, THEREFORE, REVENUE HAS FILED THE PRESENT APPEAL BEFORE US. I SSUE NOS . 1 & 2: - ITA. NO. 3851 /M/20 1 4 A.Y. 1990 - 1991 3 4. UNDER THESE ISSUES THE REVENUE HAS CHALLENGED THE DECISION OF THE HONBLE CIT(A) ON THE BASIS OF THIS FACT THA T THE ASSESSEE WAS ONLY ENTITLED TO THE SIMPLE INTEREST IN VIEW OF THE PROVISION U/S 244A OF THE ACT. THE LD. REPRESENTATIVE OF THE ASSESSEE HAS ARGUED THAT THE CASE OF ASSESSEE HAS DULY BEEN COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF BOMBAY HIGH COURT IN THE CASE OF SISTER CONCERN TITLE AS CIT VS. M/S. TATA SONS LTD. IN ITA. NO.3461/M/2009 AND ALSO COVERED BY DECISION OF THE ASSESSEES OWN CASE DECIDED BY HONBLE ITAT FOR THE A.Y. 1999 - 2000 , 1998 - 99 & 1995 - 96 . THEREFORE, IN THE SAID CIRCUMSTANCES , THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. BEFORE GOING FURTHER, WE DEEMED IT NECESSARY TO ADVERT THE FINDING OF THE CIT(A) ON RECORD.: - 4.4 I HAVE CONSIDERED THE ABOVE SUBMISSIONS OF THE APPELLANT AS WELL AS THE FACTS OF THE CASE. AS PER THE PROVISIONS OF SECTION 244A, WHERE REFUND OF ANY AMOUNT (OUT OF ANY TAX PAID BY WAY OF ADVANCE TAX OR TAX DEDUCTED AT SOURCE) BECOMES DUE TO THE ASSESSEE UNDER THE PROVISIONS OF THE ACT, THE ASSESSEE SHALL BE ENTITLED TO RECEIVE (IN ADDITION LO THE REFUND O F TAX) SIMPLE INTEREST CALCULATED AT THE PRESCRIBED RATE (PER MONTH) (THIS RATE HAS CHANGED FROM TIME TO TIME) FOR EVERY MONTH OR PART OF A MONTH, COMPRISED IN THE PERIOD FROM THE 1ST DAY OF APRIL OF THE ASSESSMENT YEAR TO THE DATE ON WHICH THE REFUND IS G RANTED [SECTION 244A(L)(A)]. FURTHER, IF THE REFUND IS OUT OF ANY OTHER TAX PAID ON ACCOUNT OF ANY OTHER REASON, THE INTEREST SHALL BE CALCULATED AT THE PRESCRIBED RATE (PER MONTH) (THIS RATE HAS ALSO CHANGED FROM TIME TO TIME) FROM THE DATE OF PAYMENT TAX TO THE DATE ON WHICH THE REFUND IS GRANTED [SECTION 244A(L)(B)]. 5 . ON APPRAISAL OF THE ABOVE MENTIONED FINDING, WE NOTICED THAT THE CIT(A) HAS DECIDED THE MATTER OF CONTROVERSY ON THE DECISION OF ITA. NO. 3851 /M/20 1 4 A.Y. 1990 - 1991 4 THE HONBLE ITAT IN THE ASSESSEES OWN CASE FOR THE A.Y. 1999 - 2000, 1998 - 99 & 1995 - 96 . IN BRIEF, THE CIT(A) HAS DIRECTED THE AO TO ALLOW THE INTEREST U/S 244A OF THE ACT UPTO DATE OF REFUND AND EXCLUDING INTEREST COMPONENT INCLUDING IN THE REFUND GRANTED EARLIER IN COMPUTING BASE FIGURE FOR THE PRESENT WORKING O F INTEREST U/S 244A OF THE ACT. THE MATTER OF CONTROVERSY HAS RIGHTLY BEEN ADJUDICATED IN FAVOUR OF THE ASSESSEE BY CIT(A) . THE ISSUES ARE SQUARELY COVERED BY THE DECISION OF THE ASSESEES OWN CASE MENTIONED ABOVE. N O DISTINGUISHABLE FACTS AND LAW HAVE B EEN PRODUCED BEFORE US BY REVENUE FROM DEVIATING THE FINDING OF THE CIT(A). T HEREFORE, IN THE SAID CIRCUMSTANCES, WE UPHOLD THE FINDING OF THE CIT(A) ON THESE ISSUES AND DECIDE THESE ISSUES IN FAVOUR OF THE ASSESSEE AGAINST THE REVENUE. 6 . IN THE RESULT , THE APPEAL FILED BY THE REVENUE IS HERE BY ORDERED TO BE DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 29.08 . 2018 . SD/ - SD/ - ( SHAMIM YAHYA ) (AMARJIT SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED : 29.08 . 2018 . V IJAY ITA. NO. 3851 /M/20 1 4 A.Y. 1990 - 1991 5 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI