DCIT, Circle - 12, Kolkata, Kolkata V. M/s. Hindustan Gum & Chemicals Ltd., Kolkata

ITA 511/KOL/2011

• Counselvise Citation: 51123514 RSA 2011
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 29-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEBASIS ROY
• Assessee Lawyers: S BHOWMICK
• Keywords: Rectification of order
• Section: 154; 244A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE , /AND , . !' . #$ ) [BEFORE SRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM] % % % % / I.T.A NOS. 511-512/KOL/2011 &' () &' () &' () &' ()/ // / ASSESSMENT YEARS: 2001-02 & 2002-03 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. HINDU STAN GUM & CHEMICALS LTD. CIRCLE-12, KOLKATA. (PAN:AAACH 7214 E) (+, /APPELLANT ) (-.+,/ RESPONDENT ) DATE OF HEARING: 10.02.2012 DATE OF PRONOUNCEMENT: 10.02.2012 FOR THE APPELLANT: SHRI DEBASIS ROY FOR THE RESPONDENT: SHRI S. BHOWMICK #/ / ORDER PER BENCH: THESE APPEALS BY REVENUE ARE ARISING OUT OF SEPARAT E ORDERS OF CIT(A)-XXXVI, KOLKATA IN APPEAL NOS.63 & 62/CIT(A)-XXXVI/12(1)/KO L/07-08 VIDE DATED 03.01.2011 AGAINST RECTIFICATION ORDER PASSED U/S.154 OF THE I NCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE SEPARATE ORDERS OF ITO, WD-12(4) , KOLKATA DATED 31.07.2007. 2. THE ONLY COMMON ISSUE IN THESE TWO APPEALS OF R EVENUE IS AGAINST ORDER OF CIT(A) IN ALLOWING INTEREST ON FUND U/S 244A OF THE ACT. FOR THIS, REVENUE HAS RAISED THE FOLLOWING COMMON GROUND: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, LD. CIT(A) HAS ERRED IN ALLOWING INTEREST ON FUND U/S. 244A OF THE I. T. ACT UP TO T HE DATE OF ISSUANCE OF REFUND WITHOUT APPRECIATING THE FACTS THAT THE DELAY WAS DUE TO VE RIFICATION OF DEFECTIVE TDS CERTIFICATES. 3. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. THE RELEVANT ASSESSMENT YEARS INVOLVED AR E 2001-02 AND 2002-03 AND ASSESSEE-COMPANY FILED ITS RETURN OF INCOME ON 29.1 0.2001 AND 31.10.2002 FOR A.YRS 2001-02 AND 2002-03. THESE RETURNS WERE PROCESSED U /S 143(1) OF THE ACT ON 20.08.2002 AND 24.02.2003 COMPUTING REFUND OF RS.17 ,44,173/- AND RS.56,02,885/- FOR A.YS 2001-02 AND 2002-03 RESPECTIVELY. PROCESSING O F THESE RETURNS WAS DONE U/S ITA 511-512/K/2011 HINDUSTAN GUM & CHEMICALS LTD. A.Y 01-02&02-03 2 143(1) OF THE ACT ON 20.08.2002 AND 24.02.2003 BUT REFUND VOUCHER WAS SENT ONLY ON 13.08.2004 FOR THESE YEARS. THE ASSESSEE IN BOTH TH E YEARS MOVED A RECTIFICATION APPLICATION U/S 154 OF THE ACT DATED 12.04.2007 FOR BOTH THE YEARS CLAIMING INTEREST ON REFUND U/S 244A FOR THE PERIOD FROM THE DATE OF PRO CESSING TILL THE ISSUE OF REFUND VOUCHERS. THE AO REJECTED RECTIFICATION APPLICATION S FOR THE REASONS THAT REFUNDS CANNOT BE ISSUED FOR WANT OF PENDING VERIFICATION O F TECHNICALLY DEFECTIVE OF TDS CERTIFICATES. IT WAS ADMITTED, IN THE ORDER REJECTI NG THE RECTIFICATION APPLICATION THAT THE REFUND VOUCHERS WERE ISSUED ON 13.08.2004 FOR BOTH THE ASSESSMENT YEARS. 4. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE CIT( A) , WHO ALLOWED THE CLAIM OF ASSESEE BY A COMMON OBSERVATION FOR BOTH THE ASSESS MENT YEARS WHICH ARE AS UNDER :- 4. I HAVE DULY CONSIDERED THE SUBMISSION OF THE AR OF THE APPELLANT. AS PER THE PROVISIONS OF SECTION 244A OF THE ACT, THE INTEREST ON REFUND IS TO BE CALCULATED ON THE REFUND AMOUNT FROM THE 1 ST DAY OF APRIL OF THE ASSESSMENT YEAR TO THE DATE ON WHICH REFUND IS GRANTED. THEREFORE, THE APPELLANT WAS EN TITLED FOR INTEREST UPTO THE DATE OF ISSUING OF THE REFUND, I.E. 13/08/2004. THE AO, THO UGH TRIED TO REASON THAT THE DELAY IN ISSUING REFUND WAS ATTRIBUTABLE TO THE APPELLANT F OR WANT OF PENDING VERIFICATION OF TECHNICALLY DEFECTIVE TDS CERTIFICATES BUT DID NOT POINT OUT ANY SPECIFIC DEFECT IN ANY TDS CERTIFICATES. HAD THERE BEEN ANY DEFECTS IN TDS CERTIFICATES, IT WOULD HAVE AFFECTED THE RESULTANT REFUND ITSELF. THE TIME TAKE N BY THE DEPARTMENT FOR VERIFICATIONS WITH THE ISSUERS OF THE TDS CERTIFICATES BEFORE ISS UING THE REFUND CANNOT BE ATTRIBUTABLE TO THE APPELLANT. UNDER THE CIRCUMSTAN CES, THE AO IS DIRECTED TO ALLOW INTEREST ON REFUND UPTO THE DATE OF ISSUING REFUND I.E. 13/08/2004. HOWEVER, INTEREST ON INTEREST IS NOT ALLOWABLE AS THERE IS NO SUCH PROVI SION IN THE ACT. 5. WE FIND THAT EVEN NOW REVENUE BEFORE US COULD NO T CONTEND ANYTHING THAT THERE IS A FAULT ON THE PART OF ASSESSEE FOR CLAIM OF REF UND. EVEN IT WAS NOT SUBSTANTIATED WHEN TECHNICAL DEFECTS IN THE TDS CERTIFICATES WERE POINTED OUT BY AO. IN THE ABSENCE OF ANYTHING FROM THE REVENUE, WE CONFIRM THE ORDERS OF CIT(A) AND HENCE, BOTH THE REVENUES APPEALS ARE DISMISSED. 6. IN THE RESULT APPEALS OF REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT . SD/- SD/- . .. . !' !'!' !' . .. . , , , , #$ #$ #$ #$ , C.D.RAO, ACCOUNTANT MEMBER. , , , , MAHAVIR SINGH, JUDICIALMEMBER ( (( ( '$ '$ '$ '$ ) )) ) DATE: 10.02.2012. ITA 511-512/K/2011 HINDUSTAN GUM & CHEMICALS LTD. A.Y 01-02&02-03 3 R.G.(P.S.) #/ 1 - 2#(3- COPY OF THE ORDER FORWARDED TO: 1 . M/S.HINDUSTAN GUM & CHEMICALS LTD., 9/1, R.N.MUKHER JEE ROAD, KOLKATA- 700001. 2 D.C.I.T., CIRCLE-12, KOLKATA. 3 . THE C.I.T. 4. CIT(A),XXXVI, KOLKATA. 5 . THE CIT(DR), KOLKATA BENCHES, KOLKATA . -/ TRUE COPY, #/&9/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES