ACIT, New Delhi V. M/s. Delhi Tourism Transportation Development Corporation Ltd., New Delhi

ITA 458/DEL/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1304 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-12-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 30-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK SEHGAL
• Keywords: Rectification of order
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI `B BENCH : NEW DELHI) BEFORE SHRI U.B.S. BEDI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.458/DEL./2012 (ASSESSMENT YEAR : 2001-02) ACIT, CIRCLE 10(1), VS. DELHI TOURISM TRANSPORTAT ION NEW DELHI. DEVELOPMENT CORPORATION LTD., 18-A, DDA, SCO COMPLEX, DEFENCE COLONY, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI H.P. AGARWAL/UDAY AGARWAL/ALOK G UPTA, ARS REVENUE BY : SHRI DEEPAK SEHGAL, SR.DR ORDER PER U.B.S. BEDI, JM THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-XVI, NEW DELHI, DATED 15.11.2011, RELEVANT TO ASSESSMENT YEA R 2001-02, WHEREBY ORDER OF CIT(A) IN HOLDING THAT INTEREST ON INTEREST IS ALLOWABLE T O THE ASSESSEE, HAS BEEN CHALLENGED. 2. FACTS OF THE CASE ARE THAT THE DEMAND OF RS.11, 58,61,924/- WAS RAISED FOR ASSESSMENT YEAR 2001-02 ON 30.01.2004 WHILE COMPLET ING THE ASSESSMENT U/S 143(3). IN RESPONSE TO THE DEMAND NOTICE, THE ASSESSEE PAID RS .3 CRORES ON 26.03.2004. SUBSEQUENTLY, CONSEQUENT UPON THE CIT(A)S ORDER, D ATED 08.06.2004, THE ABOVE PAYMENT OF RS.3 CRORES BECAME REFUNDABLE TO THE ASSESSEE. HOWEVER, THE ASSESSING OFFICER WHILE GIVING EFFECT TO THE ABOVE APPEAL ORDER ON 01.08.20 04 DID NOT GRANT THIS REFUND OF RS.3 CRORES TO THE ASSESSEE. THIS ORDER GIVING EFFECT T O THE ASSESSEE ORDER WAS SUBSEQUENTLY AMENDED ON 31.03.2007 AND THIS AMOUNT OF RS.3 CRORE S WAS ADJUSTED AGAINST THE DEMAND FOR THE ASSESSMENT YEAR 2004-05. HOWEVER, THE ASSE SSEE WAS NOT GRANTED ANY INTEREST ON THIS REFUND ADJUSTMENT OF RS.3 CRORES FOR THE PERIO D BETWEEN 26.03.2004 I.E. DATE OF I.T.A. NO.458/DEL./2012 (A.Y. : 2001-02) 2 PAYMENT OF DEMAND, AND 31.03.2007 I.E. THE DATE OF ADJUSTMENT. THEREFORE, THE ASSESSEE HAD FILED AN APPLICATION FOR THE INTEREST ON RS.3 C RORES AND ALSO FOR INTEREST ON INTEREST. IN RESPONSE, THE ASSESSING OFFICER VIDE ORDER DATED 18.11.2010 GRANTED INTEREST OF RS.55,62,000/- FOR THE PERIOD BETWEEN 26.03.2004 TO 31.03.2007. THEREAFTER, THE ASSESSEE HAD FILED ANOTHER APPLICATION FOR INTEREST ON INTE REST AND THE SAME WAS DENIED BY THE ASSESSING OFFICER VIDE HIS ORDER U/S 154 DATED 15.0 6.2011. THE RELEVANT PORTION OF THE ASSESSING OFFICERS 154 ORDER IS AS FOLLOWS: THE APPLICATION FILED BY THE ASSESSEE HAS BEEN CON SIDERED AND ON GOING THROUGH THE SAME, IT IS REVEALED THAT THE ASSESSEE IS REQUE STING FOR THE GRANT OF INTEREST ON INTEREST ON DELAYED INTEREST. AS PER PROVISIONS OF THE I.T. ACT, 1961, THERE IS NO PROVISION FOR THE ALLOWABILITY OF INTEREST ON INTER EST AS CLAIMED BY THE ASSESSEE IN ITS APPLICATIONS MENTIONED ABOVE. SINCE THERE IS N O MISTAKE APPARENT FROM RECORD AND IN VIEW OF THE FACT THAT THERE IS NO PROVISION OF ALLOWABILITY OF SUCH INTEREST, NO RECTIFICATION ORDER CAN BE PASSED. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE THE APPLICATION FILED BY THE ASSESSEE IS HEREBY REJECTED. 3. AGGRIEVED BY THE ABOVE 154 ORDER BY THE ASSESSIN G OFFICER, THE ASSESSEE FILED APPEAL AND CONTENDED BEFORE FIRST APPELLATE AUTHORI TY THAT ISSUE RAISED IN THIS APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY HONBLE SUPREM E COURT DECISION IN THE CASE OF SANDVIK ASIA LTD. VS. CIT, REPORTED IN 280 ITR 643 AND ACCORDING TO AR OF THE ASSESSEE, THE CASE IN HAND IS IDENTICAL ON FACTS AND CIT(A) W HILE INCORPORATING FACTS IN THE CASE OF SANDVIK ASIA LTD. VS. CIT (SUPRA) AND OTHER SUPPORT IVE DECISIONS HAS CONCLUDED TO DIRECT THE ASSESSING OFFICER TO VERIFY THE COMPUTATION AS FILED BY THE ASSESSEE AND INCORPORATED BY CIT(A) IN HIS ORDER AND GRANT INTEREST ON INTERE ST BASED ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LTD. VS. CIT AND CIT VS. H.E.G. LTD., REPORTED IN 324 ITR 331, WHILE ALLOWING THE APPEAL OF THE ASSESSEE. 4. AGGRIEVED BY THIS ORDER OF CIT(A), DEPARTMENT HA S COME UP IN APPEAL AND WHILE RELYING UPON ASSESSING OFFICERS ORDER, IT WAS PLEA DED FOR SETTING ASIDE THE ORDER OF CIT(A) AND RESTORING THAT OF THE ASSESSING OFFICER BECAUSE THERE IS NO PROVISIONS IN I.T. ACT, TO ALLOW INTEREST ON INTEREST, WHEREAS LD.AR OF THE ASSESSEE SUBMITTED THAT ISSUE IS SQUARELY COVERED NOT BY HONBLE HIGH COURT DECISION , BUT BY THE DECISION OF HONBLE HIGHEST COURT OF THE LAND. AS PER ARTICLE 141 OF T HE CONSTITUTION OF INDIA, ALL AUTHORITIES, I.T.A. NO.458/DEL./2012 (A.Y. : 2001-02) 3 COURTS ARE BOUND TO FOLLOW THE SUCH DECISIONS AND T HERE IS NO JUSTIFICATION EVEN FOR THE DEPARTMENT TO FILE THE APPEAL. THEREFORE, IT SHOUL D BE DISMISSED. 5. WE HAVE HEARD BOTH THE SIDES, CONSIDERED THE MAT ERIAL ON RECORD AS WELL AS PRECEDENTS RELIED BY THE LD.AR OF THE ASSESSEE AND APPLIED BY THE CIT(A) IN HIS ORDER AND FIND THAT ISSUE IS SQUARELY COVERED IN FAVOUR O F THE ASSESSEE BY THE TWO DECISIONS OF THE HONBLE SUPREME COURT, REFERRED TO ABOVE BY THE CIT(A). THEREFORE, FOLLOWING THE SAID DECISIONS, WE UPHOLD THE ORDER OF THE CIT(A) A ND DISMISS THE APPEAL OF THE REVENUE BEING DE VOID OF ANY MERITS. 6. AS A RESULT, THE APPEAL OF THE REVENUE GETS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON 04.01.2013. SD/- SD/- (T.S. KAPOOR) (U.B.S. BEDI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: JAN. 04, 2013. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT (CONCERNED) 4. THE CIT(A)-XVII, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT