DCIT, New Delhi V. M/s. Power Grid Corporation of India Ltd., New Delhi

ITA 5868/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87152 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 27-03-2015
• Assessment Year: misc
• Appeal Filed On: 01-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: R RAJA GOPALAN AGM
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SH. R.S. SYAL , A.M. & SH. A.T. VARKE Y, J.M. ITA NO S. 5868 TO 5870 /DEL / 2013 ASSESSMENT YEAR: 2012 - 13 DEPUTY CIT, CIRCLE 51(1) , POWER GRID CORPORATION OF ROOM NO. 508, AAYAKAR BHAWAN, INDIA LTD., B - 9, QUTAB INSTITUTIONAL LAXMI NAGAR, DIST. CENTRE, AREA, KATWARIA SARAI, NEW DELHI NEW DELH ( TAN : DELPO6685A ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. VIKRAM SAHAY, SR. DR RESPONDEN T BY: SH. R. RAJA GOPALAN, AGM DATE OF HEARING: 27.03.2015 DATE OF PRONOUNCEMENT: 27 .03.2015 ORDER PER BENCH : THESE THREE APPEALS BY THE REVENUE RELATE TO THE ASSESSMENT YEAR 2012 - 13 , IN WHICH A COMMON ISSUE HA S BEEN RAISED. WE ARE , THEREFORE, PROCEED ING TO DISPOSE OFF THESE APPEALS BY THIS CONSOLIDATE D ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY EFFECTIVE GROUND RAISED IN ALL THE APPEALS READ S AS UNDER : - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD. CIT(A) HAS ERRED IN AGREEING TO THE CONTENTION OF POWER GRID CORPORATION OF INDIA LIMITED THAT NO INTEREST CAN BE DEMANDED U/S 201(1A) OF THE ACT. THE LD. CIT(A) S HOULD HAVE UPHELD THAT THE ACTION OF THE ASSESSING OFFICER IN CHARGING THE INTEREST U/S 201(1A) OF THE ACT BEING MANDATORY AS PER LAW FOR THE REASON THAT NO PROVISO OR EXPLANATION IS EXISTING UNDER THE RELEVANT PROVISIONS OF THE ACT AVERTING THE ASSESSING OFFICER TO LEVY INTEREST U/S 201(1A) ON THE EXISTING OF ANY REASONABLE CAUSE WITH THE DEDUCTOR COMPANY. 2 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PUBLIC SECTOR UNDERTAKING, WHICH HAD SOME DISPUTE WITH ITS EMPLOYEES ASSOCIATION ON THE QUESTION OF DEDUCTION OF TAX AT SOURCE. THE EMPLOYEES UNION APPROACHED THE HON BLE C ALCUTTA HIGH COURT , WHICH , BY AN INTERIM ORDER , DIRECTED THE ASSESSEE TO DEPOSIT TAX AT SOURCE AMOUNT IN THE DESIGNATED BANK ACCOUNT . THIS DIRECTION WAS DULY COMPLIED WITH BY THE ASSESSEE . THE ASSESSING OFFICER HELD THAT THE ASSESSEE IS CHARGEABLE TO INTEREST UNDER SECTION 201(1A) OF THE ACT. THE L EARNED CIT(A) , RELYING ON THE ORDERS PASSED BY HIS PREDECESSOR FOR THE ASSESSMENT YEARS 2007 - 08 , 2010 - 11 AND 2011 - 12 , DECIDED THE ISSUE IN ASSESSEE S FAVOUR. HE FURTHER OBSERVED THAT THE REVENUE PREFERRED APPEALS AGAINST SUCH REFERRED ORDERS OF LEARNED CIT(A) , WHICH CAME TO BE DISMISSED BY THE TRIBUNAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. A COPY OF THE TRIBUNAL ORDER PASSED IN ASSESSEE S OWN CA SE FOR THE ASSESSMENT YEARS 2007 - 08, 2010 - 11 AND 2011 - 12 IS AVAILABLE ON PAGES 4 TO 7 OF THE PAPER BOOK. IN THIS ORDER DATED 22.11.2012, THE TRIBUNAL HAS UPHELD THE DELETION OF INTEREST UNDER SECTION 201(1A) BY OBSERVING THAT THE AMOUNT IN QUESTION WAS DEPOSITED IN A SEPARATE BANK ACCOUNT AS DIRECTED BY THE HON BLE CALCUTTA HIGH COURT AND HENCE UNDER SUCH CIRCUMSTANCES, TH E CHARGING OF INTEREST U/S 201(1A) WAS NOT WARRANTED . SIMILAR VIEW HAS BEEN TAKEN BY THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEARS 2006 - 07, 2007 - 08 AND 2008 - 09 , A COPY OF WHICH IS AVAILABLE ON RECORD. VIDE THIS ORDER DATED 3 10.05.2013, THE TR IBUNAL HAS DIRECTED FOR THE DELETION OF INTEREST UNDER SECTION 201(1A). IN THE ABSENCE OF ANY DISTIN GUISHING FEATURE HAVING BEEN BROUGHT TO OUR NOTICE BY THE LEARNED DR IN THE FACTS OF THE INSTANT APPEALS VIS - - VIS THOSE ALREADY DECIDED BY THE TRIBUNAL, RE SPECTFULLY FOLLOWING THE PRECEDENTS, WE UPHOLD THE IMPUGNED ORDER S . 5. IN THE RESULT, ALL THE THREE APPEALS ARE DISMISSED. THE DECISION IS PRONOU NCED IN THE OPEN COURT ON 27 TH MARCH , 2015. SD/ - SD/ - ( A.T. VARKEY ) ( R.S. SYAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 T H MARCH , 2015. RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI