SANOFI INDIA LTD ( FORMERLY AVENTIS PHARMA LTD), MUMBAI V. DCIT RG 8(1), MUMBAI

ITA 5692/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84475 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 20-05-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 10-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIPDR
• Keywords: Rectification of order; Opportunity of being heard
• Section: 244A; 154

Judgement Text

, , ,, , , ,, , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E MUMBAI , .. , ! BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER . / ITA NO.5692/MUM/2012 ' ' ' ' #' #' #' #' / ASSESSMENT YEAR: 2007-08 SANOFI INDIA LTD.(FORMERLY AVENTIS PHARMA LIMITED) 54A, SIR. MATHURADAS VASANJI ROAD, ANDHERI(E), MUMBAI-400093 VS. DCIT, RANGE-8(1), 2 ND FLOOR, AAYAKAR BHAVAN, MAHARSHI KARVE ROAD, MUMBAI-400020 ( $% / APPELLANT ) ( &'$% / RESPONDENT) P.A. NUMBER : AAACH2736F $% ( ) / APPELLANT BY: SHRI NITESH JOSHI &'$% ( ) / RESPONDENT BY : SHRI NEIL PHILIP-DR ( *+ / DATE OF HEARING : 11/12/2014 ,-# ( *+ / DATE OF PRONOUNCEMENT : 11/12/2014 O R D E R PER JOGINDER SINGH, JM: THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 08/06/2012 OF THE LD. FIRST APPELLATE AUTHORITY, MUM BAI. THE FIRST GROUND PERTAINS TO DECLINING ALLOWANCE OF INTEREST U/S 244A OF THE 2 SANOFI INDIA LTD. INCOME-TAX ACT, 1961 (HEREINAFTER THE ACT) ON THE R EFUND OF ADVANCE TAX PAID BY THE ASSESSEE. 2. THE CRUX OF ARGUMENTS ADVANCED BY SHRI NITESH JO SHI, LD. COUNSEL FOR THE ASSESSEE, IS THAT THE ASSESSEE IS E NTITLED FOR REFUND OF ADVANCE TAX PAID BY THE ASSESSEE AS PER THE PROVISI ON OF 244A OF THE ACT. IT WAS ALSO PLEADED THAT THE ASSESSING OFFICE R HAS NOT ALLOWED APPROPRIATE CREDIT TO TDS/ADVANCE TAX PAID. ON THE OTHER HAND, SHRI NEIL PHILIP, LD. DR, DEFENDED THE CONCLUSION DRAWN IN THE IMPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRA DING OF PHARMACEUTICAL FORMULATION AND DRUGS, DECLARED TOTA L INCOME OF RS.233,67,08,748/- IN ITS RETURN FILED ON 30/10/200 7 BY FURTHER REVISING THE RETURN ON 25/03/2009 IN ORDER TO CLAIM ADDITIONAL CREDIT OF RS.19,86,957/- ON ACCOUNT OF TAX DEDUCTED AT SOU RCE. SINCE, THERE WAS A APPARENT MISTAKE IN THE ORDER PASSED U/S 143( 3) OF THE ACT, THE ASSESSEE MADE AN APPLICATION U/S 154 OF THE ACT FOR RECTIFICATION OF THE ORDER, ACCORDINGLY, BY RECTIFIED ORDER DATED 10/02/ 2011, THE TAX DEMAND WAS REDUCED TO RS.20,99,020/-. THE ASSESSEE PREFERRED APPEAL BEFORE THE LD.CIT(A) VIDE APPELLATE ORDER DA TED 15/07/2011 AND THE ASSESSING OFFICER VIDE ORDER DATED 23 RD SEPTEMBER 2011, GAVE EFFECT TO THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) RESULTING IN REFUND OF RS.2,36,19,851/-. 2.2. THE ISSUE BEFORE US PERTAINS TO INTEREST U/S 2 44A NOT ALLOWED ON REFUND ARISING FROM TDS AND ADVANCE TAXES PAID. UN DER THE FACTS 3 SANOFI INDIA LTD. AVAILABLE ON RECORD AND ALSO CANVASSED BY LD. REPRE SENTATIVES FROM BOTH SIDES, WE FIND MERIT IN THE SUBMISSIONS OF THE ASSESSEE AND ARE OF THE VIEW THAT INTEREST IS TO BE CALCULATED ON THE E NTIRE AMOUNT OF REFUND, IF IT IS OUT OF ADVANCE TAX PAYMENT, THEREF ORE, WE REMAND THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO EXAMI NE THE CLAIM OF THE ASSESSEE IN ACCORDANCE WITH LAW AND DECIDE AFRESH. THE ASSESSEE BE GIVEN OPPORTUNITY OF BEING HEARD WITH FURTHER LIBER TY TO FURNISH EVIDENCE, IF ANY, TO SUBSTANTIATE ITS CLAIM, THUS T HIS ISSUE IS ALLOWED FOR STATISTICAL PURPOSES. 3. THE NEXT GROUND PERTAINS TO NOT DIRECTING THE AS SESSING OFFICER TO ALLOW INTEREST U/S 244A ON REFUND OF REGULAR ASS ESSMENT UPTO THE DATE OF ACTUAL GRANTING OF REFUND ORDER. THE LD. C OUNSEL FOR THE ASSESSEE ADVANCED HIS ARGUMENTS WHICH ARE IDENTICAL TO THE GROUND RAISED. ON THE OTHER HAND, THE LD. DR, DEFENDED TH E CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER BY CLAIMING THAT A WELL REASONED ORDER HAS BEEN PASSED BY THE ASSESSING OFFICER AS W ELL AS BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 3.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND P ERUSED THE MATERIAL AVAILABLE ON RECORD. AFTER HEARING THE RI VAL SUBMISSIONS, WE FIND THAT THE ASSESSEE WAS GRANTED INTEREST ON REFU ND FOR THE PERIOD FROM 02/05/2011 TO 02/09/2011, BEING THE DATE OF PA SSING OF THE ORDER UNDER APPEAL. HOWEVER, AS PER SECTION 244A, THE ASSESSEE IS ENTITLED TO INTEREST THEREON UP TO THE DATE OF ACTU AL GRANT OF REFUND. IN VIEW OF THIS FACT, WE FIND MERIT IN THE CLAIM OF TH E ASSESSEE AND DIRECT THE ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE A SSESSEE AND THEN DECIDE AS PER THE PROVISIONS OF SECTION 244A OF THE ACT. NEEDLESS TO 4 SANOFI INDIA LTD. MENTION HERE THE DUE OPPORTUNITY OF BEING HEARD WIT H FURTHER LIBERTY TO FURNISH EVIDENCE, IF ANY, BE PROVIDED TO THE ASS ESSEE. THUS, THIS GROUND IS ALSO ALLOWED FOR STATISTICAL PURPOSES. FINALLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATI STICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION O F THE HEARING ON 11/12/2014. SD/- SD/- (B.R. BASKARAN) (JOGINDER S INGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED -11/12/2014 F{X~{T? P.S/. . . . . . . ( (( ( &*/ &*/ &*/ &*/ 0/#* 0/#* 0/#* 0/#* / COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &'$% / THE RESPONDENT. 3. 1 ( ) / THE CIT(A)- 4. 1 / CIT 5. /2 &* , , / DR, ITAT, MUMBAI 6. 23' 4 / GUARD FILE. . . . . / BY ORDER, '/* &* //TRUE COPY// 5 55 5 / 6 6 6 6 7 7 7 7 (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI