DY.C.I.T., CIRCLE -3(3), MUMBAI V. M/S. SICOM LTD., MUMBAI

ITA 5633/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 4696 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 29-09-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 16-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJEEV DUTT
• Keywords: Set aside
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I, MUMBAI BEFORE SHRI A.L. GEHLOT, A.M. AND SHRI R.S. PADVEKA R, J.M. ITA NO. 5633/M/2009 ASSESSMENT YEAR: 2006-07 DY. COMMISSIONER OF INCOME-TAX, APPELLANT CIRCLE 3(3), ROOM NO. 609, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 VS. M/S SICOM LTD., RESPONDENT ROOM NO. 22, SAI KRUPA CHAWL, SANJAY NAGAR, MEGHWADI, JOGESHWARI (EAST), MUMBAI 400 060 (PAN AAACS9106Q) APPELLANT BY : MR. SANJEEV DUTT RESPONDENT BY : MR. NIMESH VORA ORDER PER A.L. GEHLOT, A.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF CIT(A)- XXXII, MUMBAI, PASSED ON 28/07/2009 FOR T HE ASSESSMENT YEAR 2006-07 WHEREIN THE REVENUE HAS RAISED THE FOL LOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A), ERRED IN DIRECTING THE AO TO DELETE THE INTEREST CHARGED U/S 234B AND 234C OF THE ACT, 1961. 2. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFI CER BE RESTORED. 2. THE AO CHARGED INTEREST U/S 234B AND 234C, WHICH WAS CONTENDED BEFORE THE CIT(A) THAT THE LEVY OF INTERE ST IS NOT WARRANTED FOR TWO REASONS VIZ (A) IN VIEW OF ADDITION TO INCO ME IN ASSESSMENT NOT ITA NO. 5633/MUM/09 M/S SICOM LTD. 2 BEING ANTICIPATED OR CONTEMPLATED BY THE ASSESSEE A S THERE WAS NO ADVANCE TAX LIABILITY WARRANTING THE LEVY OF INTERE ST AND THE ASSESSEE HAVING RETURNED ITS INCOME UNDER MAT PROVISIONS OF SECTION 115JB, PROVISIONS OF SECTION 234B WERE NOT APPLICABLE. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE DIRECTE D THE AO TO DELETE THE LEVY OF INTEREST U/S 234B AND 234C. 3. THE LEARNED DR RELIED UPON THE DECISIONS OF ITAT , AHMEDABAD 3 RD MEMBER BENCH IN THE CASE OF KANEL OIL & EXPORT IND S. LTD. VS. JCIT, [2009] 121 ITD 596 AND IN THE CASE OF ACIT VS . ASHIMA SYNTEX LTD., [2009] 117 ITD 1 AND SUBMITTED THAT THE JUDGM ENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF SNOWCEM IN DIA LTD. VS. DY. CIT, 221 CTR (BOM) 594 HAS BEEN CONSIDERED BY THE ITAT, AHMEDABAD 3 RD MEMBER BENCH CITED SUPRA. 4. THE LEARNED AR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF CIT(A). 5. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF THE PARTIES AND PERUSED THE RECORD. WE FIND THAT THE ISSUE UNDER CO NSIDERATION IS SQUARELY COVERED BY THE JUDGMENT OF HONBLE JURISDI CTIONAL HIGH COURT IN THE CASE OF SNOWCEM INDIA LTD. VS. DCIT, 313 ITR 170 (BOM) WHEREIN IT WAS HELD THAT INTEREST UNDER SECTIONS 23 4B AND 234C COULD NOT BE LEVIED IN THE CASE OF COMPUTATION OF INCOME UNDER THE PROVISIONS OF SECTION 115JA. WE DO NOT FIND ANY SUB STANCE IN THE ARGUMENT OF THE LEARNED DR THAT THE ITAT, AHMEDABAD 3 RD MEMBER BENCH HAS BEEN CONSIDERED THE JUDGMENT OF THE JURIS DICTIONAL HIGH COURT IN THE CASE OF SNOWCEM INDIA LTD. CITED SUPRA , AS WE ARE DUTY BOUND TO FOLLOW THE JUDGMENT OF JURISDICTIONAL HIGH COURT. IN THE LIGHT OF THE ABOVE DISCUSSION, WE RESPECTFULLY FOLLOW THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF SN OWCEM INDIA LTD. (SUPRA) AND IN THE LIGHT OF THAT WE HERE BY UPHOLD THE ORDER OF CIT(A) ITA NO. 5633/MUM/09 M/S SICOM LTD. 3 IN DIRECTING THE AO TO DELETE THE INTEREST CHARGED U/S 234B AND 234C. ACCORDINGLY, THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF SEPTEMBER, 2010. SD/- SD/- (R.S. PADVEKAR) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29 TH SEPTEMBER, 2010 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, I BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV