ACIT 2(1)(2), MUMBAI V. CENTRAL BANK OF INDIA, MUMBAI

ITA 3975/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2449 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 25-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B C S NAIK
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER& SHRI AMARJIT SINGH, JUDICIAL MEMBER. ITA NO. 3975 /MUM/2015 (ASSESSMENT YEAR : 2008-09) THE ACIT 2(1)(2), R.NO.561, 5 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI 400 020 ... APPELLANT VS. M/S. CENTRAL BANK OF INIDA, 4 TH FLOOR, CHANDER MUKHI, NARIMAN POINT, MUMBAI 400 021. .... RESPONDENT APPELLANT BY : SHRI B.C.S.NAIK RESPONDENT BY : SHRI MADHUR AGARWAL DATE OF HEARING : 19/07/2016 DATE OF PRONOUNCEMENT : 22/07/2016 ORDER PER G.S.PANNU,A.M: THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAINI NG TO ASSESSMENT YEAR 2008-09 IS DIRECTED AGAINST AN ORD ER PASSED BY CIT(A)- 4, MUMBAI DATED 09/03/2015 WHICH IN TURN ARISES OUT OF AN ORDER DATED 22/03/2013 PASSED UNDER SECTION 250 OF TH E INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLL OWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT THE INTEREST PORTION O F THE REFUND ISSUED EARLIER HAS TO BE IGNORED FOR THE PURPOSE OF CALCUL ATING INTEREST UNDER SECTION. 244A OF THE INCOME TAX ACT, 1961, PA YABLE TO THE 2 ITA NO. 3975 /MUM/2015 (ASSESSMENT YEAR : 2008-09) ASSESSEE, ON REFUND ARISING OUT OF THE ORDER GIVING EFFECT TO OTHER OF APPELLATE AUTHORITY. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN INTERPRETING THE PROVISION OF SECTI ON 244A OF THE INCOME TAX ACT, 1961. 3. THE RESPONDENT ASSESSEE IS A PUBLIC SECTOR BANK ENGAGED IN THE BUSINESS OF BANKING AND OTHER RELATED FINANCIAL ACT IVITIES. THE BRIEF FACTS, RELEVANT FOR THE PRESENT PURPOSE, ARE THAT THE ASSESSING OFFICER PASSED AN ORDER UNDER SECTION 250 OF THE ACT ON 22/ 3/2013, GIVING EFFECT TO THE APPELLATE ORDER OF THE CIT(A), WHEREB Y THE REFUND WAS DETERMINED AT RS.166,10,67,723/- INCLUDING INTEREST DUE TO THE ASSESSEE UNDER SECTION 244A OF THE ACT OF RS.47,71, 41,344/-. HOWEVER, AS PER THE ASSESSEE SUCH INTEREST UNDER SECTION 244 A WAS LIABLE TO BE DETERMINED AT RS.49,07,21,750/-. THE AREA OF DI FFERENCE BETWEEN ASSESSEE AND REVENUE WAS AS TO WHETHER THE INTEREST PORTION OF THE REFUND ISSUED EARLIER WAS TO BE IGNORED FOR THE PUR POSE OF CALCULATING INTEREST UNDER SECTION 244A OF THE ACT, WHILE DETE RMINING THE REFUND ARISING OUT OF THE ORDER GIVING EFFECT TO THE APPEL LATE ORDER. 4. IN APPEAL BEFORE CIT(A), ASSESSEE RELIED UPON T HE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR VARIOUS ASS ESSMENT YEARS NAMELY, 1991-92,1997-98,1999-2000,2007-08 AND 2008 -08 DECIDED VIDE ITA NOS. 5431 TO 5435/MUM/2013 DATED 31/12/201 4, WHEREIN IDENTICAL CONTROVERSY HAS BEEN ADJUDICATED IN FAVOU R OF THE ASSESSEE. THE CIT(A) FOLLOWING THE AFORESAID PRECEDENTS UPH ELD THE PLEA OF THE ASSESSEE AND DIRECTED THE ASSESSING OFFICER TO CAL CULATE THE INTEREST PAYABLE TO THE ASSESSEE UNDER SECTION 244A WITHOUT REDUCING THE INTEREST UNDER SECTION 244A, WHICH WAS A PART OF TH E REFUND EARLIER 3 ITA NO. 3975 /MUM/2015 (ASSESSMENT YEAR : 2008-09) GRANTED. AGAINST SUCH A DECISION OF THE CIT(A) RE VENUE IS IN APPEAL BEFORE US. 5. BEFORE US, IT WAS A COMMON POINT BETWEEN THE PAR TIES THAT THE ORDER OF THE TRIBUNAL DATED 31/12/2014(SUPRA), WHI CH HAS BEEN RELIED UPON BY CIT(A), CONTINUES TO HOLD THE FIELD AS IT H AS NOT BEEN ALTERED BY ANY HIGHER AUTHORITY AND, THEREFORE, THE ORDER OF T HE CIT(A) DOES NOT REQUIRE ANY INTERFERENCE. ACCORDINGLY, THE ORDER O F THE CIT(A) IS HEREBY AFFIRMED AND REVENUE FAILS IN ITS APPEAL. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 22/07/2016 SD/- SD/- (AMARJIT SINGH) (G.S. PANNU) JUDICIAL MEMBER ACCOU NTANT MEMBER MUMBAI, DATED /07/2016 VM , SR. PS 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