ACIT, Nellore V. M/s balaji Industrial Corporation Ltd., Nellore Dist.

ITA 422/HYD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 6376 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 31-08-2010
• Assessment Year: 2000-2001
• Appeal Filed On: 19-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Assessee Lawyers: C P RAMASWAMI
• Section: 234B; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI N.R.S. GANESAN AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.422/HYD/2010 ASSESSMENT YEAR 2000-01 THE ACIT, VIRCLE-1, NELLORE VS M/S BALAJI INDUSTRIAL CORPORATION LTD., NELLORE DISTRICT, NELLORE (PAN AAACB 9055 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. NIVEDITA BISWAS RESPONDENT BY : SHRI C.P. RAMASWAMI O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTE D AGAINST THE ORDER PASSED BY THE CIT(A) GUNTUR DATED 27.11.200 9 AND PERTAINS TO THE ASSESSMENT YEAR 2000-01. THE ONLY ISSUE ARISES FOR CONSIDERATION IS LEVY OF INTEREST U/S 234B AND 234C OF THE ACT, WHEN THE INCOME WAS COMPUTED U/S 115JA OF THE INCOME TAX ACT. 2. SMT. NIVEDITA BISWAS, THE LEARNED DEPARTMENTA L REPRESENTATIVE SUBMITTED THAT IN VIEW OF THE KARNATAKA HIGH COURT JUDGEMENT IN THE CASE OF JINDAL THERMAL POWER CO. LTD. VS. DCIT 286 ITR 1 82 AND THE JUDGEMENT OF THE MADRAS HIGH COURT IN THE CASE OF CIT VS. GEE TA RAMAKRISHNA MILLS (P) LTD. 288 ITR 489 AND ALSO THE DECISION OF THIS TRIBUNAL, DELHI BENCH IN THE CASE OF MOHAN EXPORTS INDIA LTD. VS. JCIT 101 ITD 478, INTEREST HAS TO BE LEVIED U/S 234B AND 234C OF THE IT ACT. 3. ON THE CONTRARY, SHRI C.P. RAMASWAMI, THE LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN THE CASE OF SNOW CEM INDIA LTD. VS. DCIT, 313 ITR 170, THE BOMBAY HIGH COURT HELD THAT , INTEREST CANNOT BE ITA NO.442/HYD/2010 M/S BALAJI INDUSTRIAL CORPORATION LTD., NELLORE 2 2 LEVIED U/S 234B AND 234C WHEN THE INCOME WAS COMPUT ED U/S 115JA OF THE ACT. HOWEVER, A CONTRARY VIEW WAS TAKEN BY THE MADRAS HIGH COURT IN THE CASE OF GEETA RAMAKRISHNA MILLS (P) LTD. (SUPRA ). IN THE ABSENCE OF ANY JUDGEMENT OF THE JURISDICTIONAL HIGH COURT, ACC ORDING TO THE LEARNED REPRESENTATIVE, THE VIEW WHICH FAVOURS THE ASSESSEE HAS TO BE FOLLOWED IN VIEW OF THE JUDGEMENT OF THE APEX COURT IN THE CASE OF VEGETABLE PRODUCTS LTD. 88 ITR 192. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON E ITHER SIDE AND ALSO PERUSED THE MATERIALS AVAILABLE ON RECORD. AD MITTEDLY, THERE ARE CONFLICTING JUDICIAL OPINION ON LEVY OF INTEREST U/ S 234B&C WHEN THE INCOME WAS COMPUTED U/S 115JA OF THE ACT. THE BOM BAY HIGH COURT IN THE CASE OF SNOWCEM INDIA LTD. (SUPRA) HELD THAT I NTEREST CANNOT BE LEVIED WHEN THE INCOME WAS COMPUTED U/S 115JA OF THE ACT. WHEREAS, THE MADRAS HIGH COURT IN THE CASE OF GEETA RAMAKRISHNA MILLS (P) LTD. (SUPRA) HAS TAKEN A CONTRARY VIEW. THE CIT(A) BY FOLLOWING THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1997-98 AND 1998-99 FOUND THAT INTEREST U/S 234B & C CANNOT BE LEVIED. IN OUR OPINION, WHEN THERE IS A CONFLICTING JUDICIAL OPINI ON BETWEEN VARIOUS HIGH COURTS, AND IN THE ABSENCE OF ANY JUDGEMENT OF THE ANDHRA PRADESH HIGH COURT, THE VIEW WHICH FAVOURS THE ASSESSEE HAS TO B E FOLLOWED. THEREFORE, BY FOLLOWING THE JUDGEMENT OF THE APEX COURT IN THE CASE OF VEGETABLE PRODUCTS LTD. 88 ITR 192, WE UPHOLD THE ORDER OF TH E LOWER AUTHORITY. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 17 .9.2010 SD/- SD/- CHANDRA POOJARI N.R.S. GANESAN ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 17 TH SEPTEMBER, 2010 ITA NO.442/HYD/2010 M/S BALAJI INDUSTRIAL CORPORATION LTD., NELLORE 3 3 COPY FORWARDED TO: 1. M/S BALAJI INDUSTRIAL CORPORATION LTD., CHEMUDUG UNTA VILLAGE, VENKATACHALAM MANDAL, NELLORE DISTRICT, NELLORE 2. CIT(A) GUNTUR 3. ACIT, CIRCLE 1, 24-2-438, DARGAMITTA, NELLORE. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP