DCIT 2(3)(1), MUMBAI V. THE TATA POWER CO.LTD, MUMBAI

ITA 5343/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8413 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 1998-1999
• Appeal Filed On: 16-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUNSTIN
• Assessee Lawyers: DINESH VYAS
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ITA NO. 5343/ MUM/20 15 ( ASSESSMENT YEAR : 1998 - 99 ) DCIT 2(3)(1) R.NO.552, 5 TH FLOOR, AAYAKAR BHAVAN M.K. ROAD MUMBAI 400 020 VS. M/S. THE T ATA POWER CO. LTD., OLD NAME TATA ELECTRIC COMPANIES (AOP) B - 34, SANT TUKARAM ROAD CARNAC BUNDER MUMBAI 400 009 PAN/GIR NO. AAATL0301L APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI DINESH VYAS REVENUE BY SHRI V. JUNSTIN DAT E OF HEARING 09 / 11 /201 7 DATE OF PRONOUNCEME NT 10 / 11 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - 6, MUMBAI DATED 24/08/2015 FOR A.Y.1998 - 99 IN THE MATTER OF ORDER PAS SED U/S.143(3) OF THE IT ACT. 2. THE ONLY GRIEVANCE OF REVENUE RELATES TO CIT(A)S ACTION IN HOLDING THAT THE INTEREST PORTION OF THE REFUND ISSUED EARLIER HAS TO BE IGNORED FOR THE PURPOSE OF CALCULATING INTEREST U/S.244A OF THE IT ACT. 3. RIVAL CONTENTI ONS HAVE BEEN HEARD AND RECORD PERUSED. 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT WHILE COMPUTING INTEREST ON ITA N O. 5343/MUM/2015 THE TATA POWER CO. LTD,M 2 THE REFUND, THE AO HAS EXCLUDED THE EARLIER AMOUNT OF REFUND WHICH ALS O INCLUDED THE INTEREST, WHEREAS CONTENTION OF ASSESSEE WAS THAT PRINCIPLE AMOUNT OF EARLIER REFUND ONLY SHOULD BE REDUCED. THE AO DID NOT AGREE AND COMPUTED THE INTEREST U/S.244A AFTER REDUCING THE PRINCIPLE IN INTEREST ALREADY GIVEN ON EARLIER REFUND. 5. BY THE IMPUGNED ORDER, CIT(A) DIRECTED THE AO TO REDUCE ONLY THE PRINCIPLE AMOUNT OF REFUND BY FOLLOWING THE ORDER OF THE TRIBUNAL AS WELL AS HONBLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE. THE PRECISE OBSERVATION OF CIT(A) WAS AS UNDER: - I HAVE CAREFU LLY CONSIDERED THE FACTS OF THE CASE AND THE SUBMISSION OF THE AR. I HAVE ALSO GONE THROUGH THE ORDER OF THE HON'BLE ITAT IN APPELLANT'S OWN CASE FOR A.Y. 1997 - 98, 2001 - 02,2002 - 03 & 2005 - 06 AND THE ORDER OF THE UNCOMMON THAT REFUNDS ARE ISSUED FOR THE SAME ASSESSMENT YEAR MORE THAN ONCE DUE TO RECTIFICATION/APPEAL EFFECT ORDERS ETC. WHILE ISSUING ANY REFUND FOR THE SECOND TIME OR ON ANY SUBSEQUENT OCCASION, REFUNDS ISSUED AT EARLIER OCCASION NEED TO BE REDUCED. THESE EARLIER REFUNDS NORMALLY HAVE TWO ELEMEN TS I.E. TAX & INTEREST AMOUNT. THE ISSUE REGARDING REDUCING THE ENTIRE REFUND AMOUNT (INCLUDING INTEREST U/S 244A) VIS - A - VIS REDUCING ONLY THE TAX ELEMENT IN ORDER TO ARRIVE AT BALANCE AMOUNT ON WHICH INTEREST IS TO BE GRANTED ON SUBSEQUENT OCCASIONS HAS B EEN DECIDED BY THE HON'BLE MUMBAI HIGH COURT IN FAVOUR OF APPELLANT FOR AY 1997 - 98 VIDE ITS ORDER IN ITA NO.1560 OF 2013 (SUPRA). FOLLOWING THE ABOVE ORDERS, THE AO IS DIRECTED TO EXCLUDE THE INTEREST ELEMENT OF REFUND EARLIER GRANTED WHILE DEDUCTING THE A MOUNT OF REFUND ISSUED EARLIER. ACCORDINGLY, THE APPELLANT SHOULD BE ALLOWED REFUND OF INTEREST ALLOWED SHORT AS PER THE WORKING FURNISHED BY IT AFTER VERIFICATION OF THE SAME. THE APPELLANT IS REQUESTED TO FURNISH A COPY OF THE WORKING OF THE SAME TO AO F OR VERIFICATION. THE APPELLANT SHOULD ALSO BE ALLOWED INTEREST U/S I 1 244A ON THE SAID AMOUNT TILL THE DATE OF ISSUE OF THE REFUND. 6. WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE C IT(A) IN SO FAR AS HE HAS DIRECTED THE AO TO REDUCE ONLY THE PRINCIPLE AMOUNT OF REFUND BY ITA N O. 5343/MUM/2015 THE TATA POWER CO. LTD,M 3 FOLLOWING THE ORDER OF HONBLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE AS STATED ABOVE. 7. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN TH E OPEN COURT ON THIS 10 / 11 /2017 S D/ - ( RAM LAL NEGI ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 10 / 11 /201 7 KARUNA SR. PS COPY OF THE ORDER FO RWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//