DC IT, New Delhi V. M/s. Genpact India, New Delhi

ITA 4011/DEL/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61621 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 11-04-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 30-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIS GILL
• Assessee Lawyers: RUHI HINA DUA; S GANESH PAWAN SHARMA; KUM MADHAV SWAROOP

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `C : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI A.N. PAHUJA, ACCOUNTANT MEMBER ITA NO.4011/DEL./2010 (ASSESSMENT YEARS : 2003-04) DCIT, CIRCLE 12(1), VS. M/S GENPACT INDIA, NEW DELHI. (FORMERLY KNOWN AS GE CAPITAL INTERNATIONAL SERVICES) AIF ACS BUILDING, 1, RAFI MARG, NEW DELHI. (PAN/GIR NO.AAACG9163H) (APPELLANT) (RESPONDENT) ASSESSEE BY : S/SHRI S. GANESH, PAWAN SHARMA AND KUM.MADHAV SWAROOP & MISS RUHI HINA DUA REVENUE BY : SHRI R.I. S. GILL, CIT(DR) ORDER PER U.B.S. BEDI, J.M. THIS APPEAL OF THE DEPARTMENT IS DIRECTED AGAINST T HE ORDER PASSED BY THE CIT(A)- XX, NEW DELHI, DATED 30.06.2010, RELEVANT TO ASSESS MENT YEAR 2003-04, WHEREIN FOLLOWING EFFECTIVE GROUND NO.2 HAS BEEN RAISED: ON THE FACTS IN CIRCUMSTANCES OF THE CASE AND IN L AW, THE CIT(A) HAS ERRED IN DELETING THE INTEREST CHARGED U/S 234D AMOUNTING TO RS.1,07,60,685/- WITHOUT APPRECIATING THE FACT THAT THE PROVISION OF CHARGIN G INTEREST U/S 234D HAS BEEN BROUGHT ON THE STATUTE FROM 01.06.2003 AND THE INTE REST HAS BEEN FIRST CHARGED ON 24.03.2004, I.E., AFTER THE STATUTE HAD COME INTO FORCE. I.T.A. NO.4011/DEL./2010 (A.Y. : 2003-04) 2 2. AT THE VERY OUTSET, LD.AR OF THE ASSESSEE SUBMIT TED THAT THE ISSUE IN RELATION TO LEVY OF INTEREST U/S 234D OF THE I.T. ACT, 1961 WAS CONTESTED IN FIRST APPEAL ON THE GROUND THAT PROVISION HAS BEEN BROUGHT ON THE STATUTE BOOK FROM 1 ST JUNE, 2003 AND, THEREFORE, IT CANNOT BE APPLIED TO ASSESSMENT YEAR 2003-04 OR EAR LIER YEARS, AND IT SHALL HAVE APPLICATION ONLY W.E.F. ASSESSMENT YEAR 2004-05. T HE CIT(A) WHILE AGREEING WITH THE PLEA OF THE ASSESSEE AND FOLLOWING SPECIAL BENCH DE CISION IN THE CASE OF EKTA PROMOTERS PVT. LTD. (2008-TIOL-337-DEL (SB) HAS CONCLUDED TO FOLLOW THE ORDER OF SPECIAL BENCH AS RELIED UPON BY THE ASSESSEE TO DELETE THE LEVY OF I NTEREST U/S 234D OF THE ACT. SINCE, ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE, THEREFORE, AP PEAL OF THE REVENUE IS LIABLE TO BE DISMISSED, WHICH MAY BE REJECTED. 3. LD.DR. COULD NOT CONTROVERT THIS FACTUAL ASPECT AND HE HAS ALSO NOT BEEN ABLE TO BRING ON RECORD ANY CONTRARY DECISION OF THE TRIBUN AL OR ANY HIGHER COURT ORDER, REVERSING THE ORDER OF THE TRIBUNAL OR HOLDING OTHERWISE. 4. CONSIDERING THE ENTIRETY OF FACTS, CIRCUMSTANCES AND THE MATERIAL PLACED ON RECORD, WE FIND THAT ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY SPECIAL BENCH DECISION AS RELIED UPON BY THE ASSESSEE IN FIRST APPEAL PROC EEDINGS AND FOLLOWED BY CIT(A) TO DELETE THE LEVY OF INTEREST U/S 234D OF THE ACT. S INCE, NO CONTRARY DECISION OR ANY HIGHER COURT ORDER FAVORING THE REVENUE HAS BEEN FILED, TH EREFORE, WE DO NOT FIND ANY VALID GROUND TO INTERFERE IN THE ORDER PASSED BY THE CIT( A) WHICH IS CONFIRMED AND APPEAL OF THE REVENUE IS DISMISSED. I.T.A. NO.4011/DEL./2010 (A.Y. : 2003-04) 3 5. AS A RESULT, THE APPEAL OF THE REVENUE GETS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT SOON AFTER THE CONC LUSION OF THE HEARING ON 11.04.2012. SD/- SD/- (A.N. PAHUJA) ACCOUNTANT MEMBER (U.B.S. BEDI ) JUDICIAL MEMBER DATED : APRIL 11, 2012 SKB COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A)-XX, NEW DELHI. 5. CIT(ITAT) DEPUTY REGISTRAR, ITAT