DDIT (IT) 1(1), MUMBAI V. ASIA TODAY LTD, MUMBAI

ITA 4236/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1992 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 13-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YASHWANT U CHAVAN
• Assessee Lawyers: HITENDRA BHANDARI
• Section: 244A; 154

Judgement Text

A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ I.T.A. NO. 4236 /MUM/2014 ( / ASSESSMENT YEAR : 2004-05) ASSTT. DIT (IT) 1(1), ROOM NO. 117, IST FLOOR, SCINDIA HOUSE, N.M. ROAD, BALLARD ESTATE, MUMBAI 400 038. / V. M/S ASIA TODAY LTD., C/O MGB & CO., CAS, JOLLY BHAVAN NO. 2, IST FLOOR, 7 NEW MARINE LINES, CHURCHGATE, MUMBAI 400 020. ./ PAN : AAGCA5649G ( / APPELLANT ) .. ( / RESPONDENT ) REVENUE BY : SHRI YASHWANT U. CHAVAN ASSESSEE BY : SHRI HITENDRA BHANDARI / DATE OF HEARING : 16-12-2015 / DATE OF PRONOUNCEMENT : 23-12-2015 / O R D E R PER RAMIT KOCHAR, ACCOUNTANT MEMBER : THIS APPEAL, FILED BY THE REVENUE, BEING ITA NO. 42 36/MUM/2014, IS DIRECTED AGAINST THE ORDER DATED 20-12-2013 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)- 10, MUMBAI (H EREINAFTER CALLED THE CIT(A)), FOR THE ASSESSMENT YEAR 2004-05. 2. THE ONLY ISSUE ARISE IN THIS APPEAL IS REGARDING THE GRANT OF INTEREST BY THE LEARNED ASSESSING OFFICER (HEREINAFTER CALLED THE AO) U/S 244A OF THE INCOME TAX ACT, 1961 ON THE REFUND DUE TO THE ASSES SEE COMPANY ON ACCOUNT OF TAX DEDUCTED AT SOURCE(TDS) BEING EXCESS OF THE TAX PAYABLE BY THE ITA 4236/M/14 2 ASSESSEE COMPANY ON INCOME COMPUTED AS PER THE INCO ME TAX ACT,1961 AGAINST WHICH THE TDS CERTIFICATES WERE NOT FILED BY THE ASSESSEE COMPANY ALONG WITH THE RETURN OF INCOME FILED BY THE ASSESS EE COMPANY WITH THE REVENUE BUT TDS CERTIFICATE OF RS. 1,95,31,217/- WE RE FILED LATER BY THE ASSESSEE COMPANY WITH THE REVENUE ON 15.12.2006 ALO NG WITH INDEMNITY BOND. THE A.O. ORDERED GRANT OF INTEREST U/S 244A OF THE ACT ON THE TDS OF RS. 3,08,77,690/- FROM THE DATE OF SUBMISSION OF TD S CERTIFICATES AND INDEMNITY BOND BY THE ASSESSEE COMPANY ON 15-12-200 6 BEFORE THE AO AND NOT FROM THE 1 ST DAY OF ASSESSMENT YEAR I.E. 01-04-2004 IN THE INST ANT APPEAL AS PER SECTION 244A OF THE ACT NOTWITHSTANDING THE FACT THAT THE ASSESSEE COMPANY HAS DULY CLAIMED THE AFORE-STATED CREDIT OF THE TDS IN THE RETURN OF INCOME FILED WITH THE REVENUE. THE ORDER U/S 154 OF THE ACT WAS PASSED BY THE AO ON 18-4-2011 WHICH WAS CHALLENGED BY THE ASS ESSEE COMPANY BEFORE THE CIT(A) WHO ACCEPTED THE CONTENTIONS AND THE CLA IM OF THE ASSESSEE COMPANY THAT THE ASSESSEE COMPANY IS ENTITLED FOR I NTEREST W.E.F. 1 ST DAY OF ASSESSMENT YEAR I.E. 1-4-2004 IN THE INSTANT CASE I N ACCORDANCE WITH SECTION 244A OF THE ACT ON REFUND COMPUTED UNDER THE ACT O N ACCOUNT OF TDS CLAIMED BY THE ASSESSEE COMPANY BEING IN EXCESS OF THE TAX COMPUTED TO BE PAYABLE UNDER THE ACT , AND NOT FROM THE DATE OF SU BMISSION OF THE TDS CERTIFICATE ALTHOUGH THERE WAS DELAY FROM THE SIDE OF THE ASSESSEE COMPANY IN FILING THE SAID TDS CERTIFICATES BEFORE THE AO ALTH OUGH THE SAME WERE DULY CLAIMED IN THE RETURN OF INCOME FILED WITH THE REVE NUE BY THE ASSESSEE COMPANY. THE CIT(A) RELIED UPON THE DECISION OF H ONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN & TOUBRO LTD. , (2011) 330 IT R 340(BOM.) WHEREIN IT WAS HELD BY HONBLE BOMBAY HIGH COURT AS UNDER:- THOUGH THE TDS CERTIFICATES WERE NOT SUBMITTED WITH THE RETURN AND WERE FILED DURING THE COURSE OF THE ASSESSMENT PROC EEDINGS, THE TRIBUNAL HAS NOTED THAT THE TAX WAS IN FACT DEDUCTED AT SOUR CE AT THE RIGHT TIME. IN THE CIRCUMSTANCES, THE TRIBUNAL IS CORRECT IN HO LDING THAT SINCE THE ITA 4236/M/14 3 BENEFIT OF TDS HAS BEEN ALLOWED TO THE ASSESSEE, IN TEREST UNDER SECTION 244A COULD NOT BE DENIED ONLY ON THE GROUND THAT TH E TDS CERTIFICATES WERE NOT FURNISHED WITH THE RETURN OF INCOME. TAX WAS DEDUCTED AND DEPOSITED IN THE EXCHEQUER IN TIME. SECTION 244A(2 ) IS NOT ATTRACTED. THE APPEAL, THEREFORE, DOES NOT RAISE ANY SUBSTANTIAL Q UESTION OF LAW AND IS DISMISSED. 3. BOTH THE PARTIES BEFORE US FAIRLY CONCEDED THAT THE MATTER AND THE ISSUE IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN & TOUBRO LTD. (SUPRA) W HEREBY THE HONBLE COURT HELD THAT THE ASSESSEE IS ENTITLED TO INTEREST ON T DS DUE TO THE ASSESSEE EVEN IF THE TDS CERTIFICATES HAVE BEEN FILED LATE AND IN TEREST SHALL BE GRANTED W.E.F. 1ST DAY OF ASSESSMENT YEAR AS PER SECTION 244A OF T HE ACT. 4. WE FIND THAT THE HONBLE BOMBAY HIGH COURT IN T HE CASE OF LARSEN & TOUBRO LTD. (SUPRA) HAS CATEGORICALLY HELD THAT THE ASSESSE IS ENTITLED TO INTEREST ON TDS DUE TO THE ASSESSEE EVEN IF THE TDS CERTIFICATES HAVE BEEN FILED LATE IF THE TAX WAS DEDUCTED AND DEPOSITED WI TH THE EXCHEQUER IN TIME, THE INTEREST HAS TO BE GRANTED TO THE ASSESSEE FROM 1 ST DAY OF ASSESSMENT YEAR IN ACCORDANCE WITH SECTION 244A OF THE ACT AND NOT FROM THE DATE OF FILING OF TDS CERTIFICATES WITH THE REVENUE. THE FACTS IN THE INSTANT APPEAL BEFORE US ARE IDENTICAL TO THE FACTS BEFORE HONBLE BOMBAY HI GH COURT IN THE CASE OF LARSEN AND TOUBRO LIMITED(SUPRA) AND THE REVENUE HA S NOT CONTRADICTED THE SAME BEFORE US . RESPECTFULLY FOLLOWING THE SAME, WE REJECT THE CONTENTIONS OF THE REVENUE AND DISMISS THIS APPEAL BY DIRECTING TH E AO TO GRANT INTEREST ON REFUND DUE TO THE ASSESSEE COMPANY ON ACCOUNT OF EX CESS TDS CLAIM WEF 01- 04-2004 AND NOT FROM THE DATE OF SUBMISSIONS OF TDS CERTIFICATES BY THE ASSESSEE COMPANY IN THE LIGHT OF OUR ABOVE DECISION STATED ABOVE STRICTLY IN ACCORDANCE WITH THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF LARSEN AND TOUBRO LIMITED(SUPRA). WE ORDER ACCORDIN GLY. ITA 4236/M/14 4 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD DECEMBER, 2015. # $% &' 23-12-2015 ( ) SD/- SD/- (JOGINDER SINGH) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER $ MUMBAI ; & DATED 23-12-2015 [ .9../ R.K. R.K. R.K. R.K. , EX. SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. : ( ) / THE CIT(A)- CONCERNED, MUMBAI 4. : / CIT- CONCERNED, MUMBAI 5. =>( 99?@ , ?@ , $ / DR, ITAT, MUMBAI A BENCH 6. (BC D / GUARD FILE. / BY ORDER, = 9 //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , $ / ITAT, MUMBAI