ASST DIT CIR 2(2), MUMBAI V. W.L GORE & ASSOCIATES (PACIFIC) PTE LTD, MUMBAI

ITA 4892/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4994 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 27-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIVYA BAJPAI IZRFKHZ DH LS

Judgement Text

M/S WL GORE & ASSOCIATES (PACIFIC) PTE. LTD. - 1 - VK;DJ VIHYH; VF/KDJ.K TH U;K;IHB EQACBZ ESAA IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUM BAI JH JKTSUNZ FLAG YS[KK LNL; ,OA JH FOT; IKY JKO] YS[ KK LNL; DS LE{K BEFORE SHRI RAJENDRA SINGH ACCOUNTANT MEMBER AND SH RI VIJAY PAL RAO JUDICIAL MEMBER VK;DJ VIHY LA[;K /ITA NO. 4892/MUM/2012 FU/KKZJ.K O'KZ @ ASSESSMENT YEAR: - 2008-09 ASSISTANT COMMISSIONER OF INCOME TAX, (IT)-2(2), ADIT (IT)2(2), SCINDIA HOUSE, BALALARD PIER, N.M. ROAD, MUMBAI 400038. CUKE@ VS. M/S WL GORE & ASSOCIATES (PACIFIC) PTE. LTD. 215 ATRIUM, A-WING, UNIT NO. 802, CHAKALA, ANDHERI KURLA, MUMBAI - 59 PAN:- AAACW1267A VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VIHYKFKHZ DH VKSJ LS @ APPELLANT BY MS. DIVYA BAJPAI IZR;FKHZ DH VKSJ LS @ RESPONDENT BY SHRI RAJESH P SHAH VKNS'K@ VKNS'K@ VKNS'K@ VKNS'K@ ORDER PER RAJENDRA SINGH, AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 15.5.2012 OF CIT(A) FOR THE ASSESSMENT YEARS 2009-10. THE ONL Y DISPUTE RAISED BY THE REVENUE IN THIS APPEAL IS REGARDING CALCULATION OF INTEREST U/S 234A OF THE INCOME TAX ACT. LQUOKBZ DH RKJH[K @ DATE OF HEARING 11-09-2013 ?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT 13-09-2013 M/S WL GORE & ASSOCIATES (PACIFIC) PTE. LTD. - 2 - 2. FACTS IN BRIEF ARE THAT THE ASSESSEE FOR THE ASS ESSMENT YEAR 2009-10 HAD DECLARED INCOME OF RS 12,18,96,438/- IN THE RETURN FILE ON 22.7.2010 WHICH HAD BEEN ACCEPTED BY AO IN ASSESSMENT MADE U/S 143( 3). THE ASSESSEE HAD PAID ADVANCE TAX OF RS. 1,37,50,000/- AND, TAX DEDU CTED AT SOURCE WAS RS. 10,287/-. THE ASSESSEE HAD ALSO PAID SELF ASSESSMEN T TAX OF RS. 19,55,508/- OUT OF WHICH RS. 4 CRORE HAD BEEN PAID ON 30 TH SEPTEMBER 2009 AND RS. 4,19,55,508/- ON 21.7.2010. THE ASSESSEE HAD CALCUL ATED THE INTEREST U/S 234A AT RS. 1,61,613/- BUT THE AO CALCULATED THE IN TEREST AT RS. 37,72,663/- AND THE SAID CALCULATION DID NOT GIVE THE CREDIT FO R PAYMENT MADE U./S 140A. CIT(A) HAS HELD THAT SELF ASSESSMENT TAX PAID BEFOR E DUE DATE OF FILING OF RETURN OF INCOME WILL BE ADJUSTED AGAINST THE TAX PAYABLE AND ONLY ON THE BALANCE AMOUNT INTEREST U/S 234A WILL BE CALCULATED. AGGRIE VED BY THE DECISION OF CIT(A) THE REVENUE IS IN APPEAL BEFORE TRIBUNAL. 3. BEFORE US THE LEARNED AR FOR THE ASSESSEE SUBMIT TED THAT THE ISSUE WAS COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT O F HONBLE SUPREME COURT IN CASE OF COMMISSIONER OF INCOME-TAX AND ANOTHER. VS. PRANOY ROY (309 ITR 231) AND THEREFORE, ORDER OF CIT(A) HAS TO BE UPHELD. LEARNE D DR PLACED RELIANCE ON THE ORDERS OF AO. 4. WE HAVE PERUSED THE RECORDS AND CONSIDERED MATTE R CAREFULLY. THE DISPUTE IS REGARDING CALCULATION OF INTEREST U/S 23 4A OF THE INCOME TAX ACT . UNDER THE PROVISIONS OF SECTION 234A, INTEREST HAS TO BE CALCULATED ON THE AMOUNT OF TAX PAYABLE AFTER ADJUSTING ADVANCE TAX A ND SELF ASSESSMENT TAX. THERE IS NO PROVISION FOR ADJUSTMENT FOR SELF ASSES SMENT TAX AGAINST THE TAX PAYABLE WHILE COMPUTING THE INTEREST U/S 234A. HOWE VER THE HONBLE SUPREME COURT IN CASE OF COMMISSIONER OF INCOME-TAX AND ANOTHER. VS. PRANOY ROY (SUPRA) HAVE HELD THAT INTEREST U/S 234A IS LEVIED TO COMPE NSATE THE REVENUE TO AVOID IT FROM BEING DEPRIVED OF PAYMENT OF TAX ON DUE DATE A ND, THEREFORE, WHEN THE TAX PAID IS NOT LESS THAN TAX DUE ON THE RETURN OF INCO ME BEFORE THE DUE DATE, NO INTEREST U/S 234A COULD BE LEVIED. THEREFORE, IN CA SE ON THE DUE DATE OF FILING THE RETURN OF INCOME THERE IS NO TAX DUE AFTER CONS IDERING THE TAXES PAID M/S WL GORE & ASSOCIATES (PACIFIC) PTE. LTD. - 3 - INCLUDING THE SELF ASSESSMENT TAX NO INTEREST U/S 2 34A CAN BE LEVIED. THE ORDER PASSED BY CIT (A) IS IN CONFORMITY WITH THE ORDER O F APEX COURT (SUPRA). WE, THEREFORE, CONFIRM THE ORDER OF CIT(A) 5. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED ON 13 -9-2013 SD/- SD/- (VIJAY PAL RAO) (RAJENDRA SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER SKS SR. P.S, MUMBAI DATED 13.9.2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI