The DCIT, Circle-10, Ahmedabad V. Nima Specific Family Trust, Ahmedabad

ITA 473/AHD/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1962 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-03-2011
• Assessment Year: 1993-1994
• Appeal Filed On: 13-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K MADHUSUDAN SRDR
• Assessee Lawyers: S N SOPARKAR SRAR; JAIMN GANDH I
• Section: 244A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD AHMEDABAD B BENCH BEFORE SHRI G.D. AGARWAL, HONBLE VICE-PRESIDENT (AZ) AND SHRI D.K. TYAGI, HONBLE JUDICIAL MEMBER ITA NO.473/AHD/2009 [ASSTT.YEAR 1993-94] DY. COMMISSIONER OF INCOME-TAX -VS- NIMA SPECIFIC FAMILY CIRCLE-10, AHMEDABAD TRUST C/O. NIRMA HOUSE , ASHRAM RD.AHMEDABAD PAN NO.AAATN0269J (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K. MADHUSUDAN, SR-DR ASSESSEE BY: SHRI S.N.SOPARKAR, SR-AR & SHRI JAIMN GANDH I, AR O R D E R PER D.K. TYAGI, JUDICIAL MEMBER:- THIS IS REVENUES APPEAL AGAINST THE ORDER OF COMM ISSIONER OF INCOME-TAX(APPEALS)-XVI, AHMEDABAD IN APPEAL NO.CIT (A)XVI/AC. CIR.10 /112/2006-07 DATED-8-12-2008 FOR THE ASSESSM ENT YEAR 1993-94. 2. THE REVENUE HAS TAKEN THE FOLLOWING GROUND:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN GRA NTING INTEREST U/S.244A ON THE REFUND THOUGH THE REFUND IS NOT ARI SING DUE TO PAYMENT OF ADVANCE TAX OR TAXES PAID U/S.199 OF THE ACT AS THE SAME WAS SNOT PAID DURING THE FINANCIAL YEAR IMMEDI ATELY PRECEDING THE ASSESSMENT YEAR. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. ITA NO.473/AHD/2009 A.Y. 1993-94 DCIT CIR-10 ABD V. NIMA SPECIFIC FAMILY TRUST PAGE 2 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE VI DE APPLICATION U/S 154 OF THE IT ACT REQUESTED THE ASSESSING OFFICER T O GRANT INTEREST ON SELF-ASSESSMENT TAX OF RS.1,13,67,188/- WHICH WAS R EJECTED BY AO. LD. CIT(A) ALLOWED THE APPEAL OF ASSESSEE BY HOLDING TH AT ASSESSEE IS ENTITLED TO INTEREST U/S.244A ON SELF-ASSESSMENT TA X PAYMENTS BY OBSERVING AS UNDER:- 3. I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELL ANT AND ALSO THE ORDER PASSED BY THE ASSESSING OFFICER U/S.154 OF TH E IT ACT. THERE IS DIRECT JUDGMENT OF MADRAS HIGH COURT ON THIS ISS UE IN THE CASE OF CHOLAMNDAL INV & FINANCE CO. LTD. REPORTED IN 294 ITR 438 (MAD). AS PER THIS JUDGMENT THERE IS NOTHING IN SEC TION 244A WHICH SAYS THAT INTEREST U/S.244A WOULD NOT BE GRANTED IN RESPECT OF EXCESS PAYMENT OF SELF ASSESSMENT TAX. THERE IS NO JUDGMENT OF ANY HIGH COURT OR EVEN TRIBUNAL IN SUPPORT OF THE V IEW TAKEN BY THE ASSESSING OFFICER. FURTHER THE HONBLE ITAT, MUMBAI HAS TAKEN THE VIEW IN FAVOUR OF THE APPELLANT IN ONE OF ITS O THER GROUP CASES SUCH AS IN THE CASE OF JETHIBEN K PATEL DISCRETIONARY TRUST FOR THE A Y 1994-94. FOLLOWING THE ORDER, I HOLD THAT APPEL LANT IS ENTITLED TO INTEREST U/S.244A ON SELF ASSESSMENT TAX PAYMENTS. AGGRIEVED BY THIS ORDER REVENUE HAS FIELD THIS APPE AL 4. AT THE TIME OF HEARING LD. DR RELIED ON THE ORDE R OF ASSESSING OFFICER. LD. COUNSEL FOR THE ASSESSEE ON THE OTHER HAND SUBMITTED THAT THE ISSUE INVOLVED IN THIS APPEAL IS ALSO COVERED B Y THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. GUJARAT STATE WAREHOUSING CORPORATION (2002) 256 ITR 596 (GUJ) THEREFORE THE ORDER OF LD. CIT(A) MAY KINDLY BE UPHELD. 5. SINCE THE LD. CIT(APPEALS) HAS HELD THAT THE ASS ESSEE IS ENTITLED TO INTEREST U/S.244A ON SELF-ASSESSMENT TAX PAYMENT BY PLACING RELIANCE ON THE DECISION OF HONBLE MADRAS HIGH COURT IN THE CASE OF CIT V. CHOLAMANDALAM INVESTMENT & FINANCE CO. LTD. (2007) 294 ITR 438 ITA NO.473/AHD/2009 A.Y. 1993-94 DCIT CIR-10 ABD V. NIMA SPECIFIC FAMILY TRUST PAGE 3 (MAD) AND OTHER DECISION OF HONBLE TRIBUNAL MUMBAI BENCH AND ALSO IN VIEW OF THE FACT THAT THE ISSUE IS ALSO COVERED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GUJARAT STATE WAREHOUSING CORPORATION (SUPRA), WE FIND NO INFIRMITY IN THE ORDER PASSED B Y LD. CIT(A) AND THE SAME IS HEREBY UPHELD. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS DAY OF 10 TH MARCH, 2011 SD/- SD/- ( G.D.AGARWAL ) ( D.K. TYAGI ) (VICE PRESIDENT) (JUDICIAL MEMBER) AHMEDABAD, DATED : 10/03/2011 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-XVI, AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD