DDIT, New Delhi V. M/s. Mitsubishi Corporation, New Delhi

ITA 4755/DEL/2011

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6674 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 16-02-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 01-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANUJ ARORA
• Section: 234B; 154

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4755/DEL/2011 (ASSESSMENT YEAR: 2005 - 06 ) DDIT, CIRCLE - 3(1), INTL TAXATION, NEW DELHI VS. MITSUBISHI CORPORATION, 2 ND FLOOR, HOTEL LE MERIDIEN, COMMERCIAL TOWER, WINDSOR PLACE, JANPATH, NEW DELHI PAN:AACCM7020P (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. ANUJ ARORA, CIT DR REVENUE BY: SH. TARANDEEP SINGH, CA DATE OF HEARING 16/02 / 2017 DATE OF PRONOUNCEMENT 27 / 02 / 2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS IS AN APPEAL FILED REVENUE AGAINST THE ORDER OF THE LD CIT(A) - VII, NEW DELHI DATED 02.08.2011 FOR THE ASSESSMENT YEAR 2005 - 06. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD CIT(A) HAS ERRED IN HOLDING THAT THE INTEREST UNDER SECTION 234B AND 234C OF THE IT ACT ARE NOT CHARGEABLE IN THE CASE ESPECIALLY IN VIEW OF THE FACT THAT IT HAS BEEN HELD BY THE HONBLE SUPREME C OURT, IN CASE OF ANJUM GHASWALA (252 ITR 1), THAT CHARGING OF SUCH INTEREST IS MANDATORY. 3. ASSESSMENT IN THIS CASE WAS COMPLETED UNDER SECTION 143 (3) OF THE INCOME TAX ACT ON TOTAL INCOME OF RS. 1314 2 9 2 200/ ON 31/12/2008. PURSUANT TO THIS DEMAND OF RS. 491982083/ INCLUDING THE INTEREST UNDER SECTION 234B AMOUNTING TO RS. 189462495/ AND INTEREST UNDER SECTION 234C OF THE ACT AMOUNTING TO RS. 8127376/ - AS WAS RAISED. 4. THE ASSESSEE HAS FILED AN APPLICATION UNDER SECTION 154 ON 13/02/2009 TO THE LD. ASSESSI NG OFFICER SUBMITTING THAT INCOME TAX APPELLATE TRIBUNAL IN ASSESSEES OWN CASE FOR THE SUBJECT ASSESSMENT YEAR IS HELD THAT THE ASSESSEE PAGE 2 OF 2 IS NOT LIABLE TO PAY INTEREST UNDER SECTION 234B & 234C OF THE INCOME TAX ACT AS IT IS NOT LIABLE TO PAY ADVANCE TAX B ECAUSE ITS ENTIRE INCOME IS SUBJECT TO TAX DEDUCTION AT SOURCE UNDER THE PROVISIONS OF SECTION 195 OF THE INCOME TAX ACT. 5. CONSEQUENTLY LD. ASSESSING OFFICER HAS PASSED AN ORDER UNDER SECTION 154 OF THE I NCOME TAX ACT 1961 ON 26/2/2009 DELETING THE INTEREST CHARGE UNDER SECTION 234B & 234C OF THE INCOME TAX ACT. 6. LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THOUGH THE LD. ASSESSING OFFICER HIMSELF HAS PASSED ORDER UNDER SECTION 154 OF THE INCOME TAX ACT ON 26/02/2009 BUT STILL HE STATED THAT THE ISSUE MAY BE DECIDED ON THE MERITS OF THE CASE. 7. THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT WHEN THE ASSESSING OFFICER HIMSELF HAS RECTIFIED IS ERROR AND DELETED THE INTEREST UNDER SECTION 234B & 234C OF THE INCOME TAX ACT THE APPEAL DOES NOT SURVIVE. 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. WHEN THE LD. ASSESSING OFFICER HIMSELF HAS PASSED ORDER UNDER SECTION 154 OF THE INCOME TAX ACT ON 26/02/2009 DELETING THE INTEREST UNDER SECTION 234B & 234C OF THE INCOME TAX ACT THE GRIEVANCE OF THE REVENUE DO ES NOT STAND. WE ALSO DO NOT WANT TO GO ON THE MERITS OF THE CASE BECAUSE IT BECOMES AN ACADEMIC EXERCISE. IN VIEW OF THIS, WE DISMISS THE APPEAL OF THE REVENUE. ORDER PR ONOUNCED IN THE OPEN COURT ON 2 7 / 02 / 2017 . - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 / 02 / 2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI