ACIT 2(3), MUMBAI V. REUTERS INDIA P.LTD ( NOW KNOWN AS THOMAS REUTERS INIDA P.LTD), MUMBAI

ITA 4913/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4990 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 30-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 244A; 154

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI .. , ! ' # , $ ', % BEFORE SHRI R.S.SYAL, AM AND SHRI VIVEK VARMA, JM ITA NO.4913/MUM/2012 : ASST.YEAR 2004-2005 THE ASST.COMMISSIONER OF INCOME-TAX CIRCLE 2(3) MUMBAI. M/S.THOMAS REUTERS INDIA PVT.LTD. (FORMERLY KNOWN AS REUTERS INDIA PRIVATE LIMITED) 4 TH FLOOR, B-WING, PIRAMAL TOWER PENINSULA CORPORATE PARK LOWER PAREL, MUMBAI 40013. PAN : AAACR3717L. ( &' / // / APPELLANT) ) ) ) ) / VS. ( *+&'/ RESPONDENT) &' , ,, , - - - - / APPELLANT BY : SHRI NEERAJ BANSAL *+&' , - , - , - , - / RESPONDENT BY : S/SHRI M.P.LOHIA & NIKHIL TIWARI ) , .! / / / / DATE OF HEARING : 12.09.2013 /01 , .! / DATE OF PRONOUNCEMENT : 13.09.2013 ' 2 ' 2 ' 2 ' 2 / / / / O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 15.05.2012 IN RELATION TO THE ASSESSMENT YEAR 2004-2005. 2. THE ONLY GROUND IS AGAINST THE SETTING ASIDE OF THE ORDER PASSED BY THE ASSESSING OFFICER U/S 154 ON THE GROUND THAT THERE WAS NO DELAY ATTRIBUTABLE TO THE ASSESSEE IN SUBMISSION OF TDS CERTIFICATES. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE O RIGINAL ASSESSMENT IN THIS CASE WAS COMPLETED ALLOWING CREDIT FOR TDS AMO UNTING TO ` 36,51,419 AS AGAINST THE CLAIM OF ` 3,99,41,427. THE ASSESSEE ITA NO.4913/MUM/2012. M/S.THOMAS REUTERS INDIA PVT.LTD. 2 REQUESTED TO ALLOW BALANCE CLAIM AS PER TDS CERTIFI CATES. ORDER U/S 154 WAS PASSED ON 07.12.2006 DETERMINING REFUND OF ` 2.48 CRORE. INTEREST OF ` 38,56,087 WAS GRANTED U/S 244A ON THE SAID REFUND. THEREAFTER, IT WAS OBSERVED BY THE ASSESSING OFFIC ER THAT THE TDS CREDIT AMOUNT OF ` 3.23 CRORE WAS GRANTED TO THE ASSESSEE ON FURNISHING OF THE REQUISITE TDS CERTIFICATES AND HE NCE THE DELAY IN GRANTING THE REFUND WAS ENTIRELY ATTRIBUTABLE TO TH E ASSESSEE. VIDE ORDER U/S 154 DATED 30.03.2011, THE ASSESSING OFFIC ER WITHDREW THE INTEREST RELATABLE TO SUCH TDS CERTIFICATES. THE LE ARNED CIT(A) SET ASIDE SUCH ORDER U/S 154, AGAINST WHICH THE REVENUE HAS COME UP IN APPEAL BEFORE US. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT TH E ASSESSEE FILED RETURN BY CLAIMING CREDIT FOR TDS AMOUNTING TO ` 3.71 CRORE. A COPY OF RETURN IS AVAILABLE ON PAGE 1 OF THE PAPER BOOK. IT CAN BE SEEN FROM THIS RETURN THAT THE ASSESSEE FURNISHED 799 TDS CER TIFICATES. THE DETAILS OF SUCH TDS CERTIFICATES RUNNING INTO SEVER AL PAGES WERE ALSO FURNISHED ALONG WITH THE RETURN OF INCOME. THE ASSE SSING OFFICER COMPLETED THE ASSESSMENT BY ALLOWING CREDIT FOR TDS AMOUNTING TO ` 36.51 LAKH ONLY. IT WAS THEREAFTER ON THE ASSESSEE S APPLICATION U/S 154 THAT THE CREDIT FOR THE REMAINING TDS CERTIFICA TES WAS ALLOWED AND THE INTEREST WAS GRANTED ON REFUND. WE FAIL TO APPRECIATE AS TO HOW THE ASSESSING OFFICER COULD PROCEED U/S 154 IN THE PRESENT PROCEEDINGS FOR TAKING BACK THE INTEREST ON THE EX CESS REFUND ON THE PREMISE THAT THE ASSESSEE WAS RESPONSIBLE FOR DELAY IN GRANTING ITA NO.4913/MUM/2012. M/S.THOMAS REUTERS INDIA PVT.LTD. 3 REFUND. WHEN ALL THE TDS CERTIFICATES WERE DULY FUR NISHED ALONG WITH THE RETURN OF INCOME, IT WAS A MISTAKE ON THE PART OF THE ASSESSING OFFICER IN NOT ALLOWING CREDIT FOR SUCH TDS CERTIFI CATES. ON FILING APPLICATION FOR RECTIFICATION CLAIMING BENEFIT OF R EMAINING TDS CERTIFICATES, IT BECAME OBLIGATORY ON THE PART OF THE DEPARTMENT TO GRANT REFUND ALONG WITH INTEREST THEREON. THIS IS W HAT WAS RIGHTLY DONE IN THE ORIGINAL ORDER U/S 154. THERE CAN BE NO CASE FOR ATTRIBUTING ANY DELAY IN GRANTING THE REFUND TO THE ASSESSEE IN THE PRESENT PROCEEDINGS INITIATED BY THE AO U/S 154. I N OUR CONSIDERED OPINION THE INTEREST WAS RIGHTLY ALLOWED TO THE ASS ESSEE IN THE ORIGINAL ORDER U/S 154 AND THE WITHDRAWAL OF THE SAME IN TH E PRESENT PROCEEDINGS WAS A MISTAKE COMMITTED BY THE REVENUE. WE, THEREFORE, APPROVE THE VIEW TAKEN BY THE LEARNED CIT(A) IN TH IS REGARD. 4. 3 .4 5 !36 , 6. 78 IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 13 TH DAY OF SEPTEMBER, 2013. ' 2 , /01 9')4 0 , : SD/- SD/- (VIVEK VARMA) (R.S.SYAL) $ ' $ ' $ ' $ ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; 9') DATED : 13 TH SEPTEMBER, 2013. DEVDAS* ITA NO.4913/MUM/2012. M/S.THOMAS REUTERS INDIA PVT.LTD. 4 ' 2 , *$.;# < #1. ' 2 , *$.;# < #1. ' 2 , *$.;# < #1. ' 2 , *$.;# < #1./ COPY OF THE ORDER FORWARDED TO : 1. &' / THE APPELLANT 2. *+&' / THE RESPONDENT. 3. = () / THE CIT, MUMBAI. 4. = / CIT(A) 6, MUMBAI. 5. #@: *$.$) , , / DR, ITAT, MUMBAI 6. : A / GUARD FILE. ' 2) ' 2) ' 2) ' 2) / BY ORDER, +#. *$. //TRUE COPY// B B B B/ // /7 6 7 6 7 6 7 6 ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI