ACIT CIR-3, Jamshedpur V. M/s Uranium Corporation of India Ltd, East Singhbhum

ITA 62/RAN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0332 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 09-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: M K CHOUDHARY
• Keywords: Retrospective amendment; Question of law
• Section: 234B

Judgement Text

P A G E 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 62 / RAN /201 7 ASSESSMENT YEAR : 2013 - 14 ACI T. CIRCLE - 3, 2, BAGMATI ROAD, NORTHERN TOWN, JAMSHEDPUR VS. M/S. URANIUM CORPORATION OF INDIA LTD., JADUGODA MINES, JADUGODA, E - SINGHBHUM PAN/GIR NO. (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI M.K.CHOUDHARY, ADV REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 1 9 / 11 / 2018 DATE OF PRONOUNCEMENT : 19 / 11 / 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR D ATED 7.10.2016 FOR THE ASSESSMENT YEAR 2013 - 14. 2. THE ONLY GRIEVANCE IN THIS APPEAL IS THAT THE LD CIT(A) IS ERRED IN DELETING THE INTEREST CHARGED U/S.234B OF THE ACT RELYING ON THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA, T. A. NO.38 OF 2010 REPORTED IN 2013( (1) TMI 140. 3. THE BRIEF FACTS ARE THAT THE ASSESSEE FILED THE RETURN OF INC OME ON 28.9.2013 AT A TOTAL INCOME OF RS. 148,22,48,030/ - . IN ITA NO.62/RAN/2017 ASSESSMENT YEAR : 2013 - 14 : P A G E 2 | 5 THE ASSESSMENT MADE U/S.143(3) OF TH E ACT VIDE ORDER DATED 4.3.2016 , THE ASSESSING OFFICER ASSESSED THE INCOM E OF THE ASSESSEE AT RS.150,47,24,060 / - . THE ASSESSING OFFICER CHARGED INTEREST U/S.234B AMOUNTING TO RS.1,26,27,074/ - ON THE ASSESSED INCOME. 4. AGGRIEVED BY THE CHARGING OF INTERES T U/S.234B OF THE ACT BY THE ASSESSING OFFICER, THE ASSESSEE FILED APPEAL BEFORE THE LD CIT(A). THE LD CIT(A) DIRECTED THE ASSESSING OFFICER TO MODIFY THE INTEREST CALCULATION U/S.234B OF THE ACT FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA), WHERE IT HAS BEEN HELD THAT INTEREST UNDER SECTION 234B CAN BE CHARGED ONLY ON THE INCOME DECLARED IN THE RETURN AND NOT ON ASSESSED INCOME. 5. THE ONLY SUBMISSION OF LD D.R. IS THAT THE REVENUE HAS NOT ACCEPTED THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF AJAY PRAK ASH VERMA (SUPRA) AND HENCE FILED THE APPEAL BEFORE THE TRIBUNAL. LD D.R. SUBMITTED THAT THE JUDGMENT OF HONBLE HIGH COURT OF JHARKHAND IS PER IN CURIUM AS IT IS BASED UPON THE JUD GMENT OF THE SUPREME COURT IN THE CASE OF RANCHI CLUB LTD., (2001) 247 ITR 209, WHICH HAS ALREADY BEEN REVERTED BY THE LEGISLATURE BY AMENDMENT UNDER FINANCE ACT, 2001 WITH ITA NO.62/RAN/2017 ASSESSMENT YEAR : 2013 - 14 : P A G E 3 | 5 RETROSPECTIVE EFFECT FROM 1.4.1989 AND SUBSEQUENTLY BY THE FINANCE ACT 2006. 6. IN THE REJOINDER, THE LD A.R. OF THE ASSESSEE SUBMITTED THAT THE DEPARTMENT HAD PREFERRED A CIVIL REVIEW PETITION BEFORE THE HON'BLE JHARKHAND HIGH COURT IN THE CASE OF ITO VS. AJAY PRAKASH VERMA IN CIVIL REVIEW NO. 66/2013 RELYING ON THE DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF RAJKUMAR SINGHAL VS UNION OF INDIA (2002) 255 ITR 561 (P&H), WHEREIN, IT WAS HELD THAT THE INTEREST CAN BE LEVIED ON THE ASSESSED INCOME AS PER SECTION 234B IN VIEW OF THE AMENDMENT CARRIED OUT IN THE ACT AND AFTE R CONSIDERING THE SAME, THE HON'BLE JHARKAHAND HIGH COURT VIDE ITS ORDER DATED 01/09/2015 DISMISSED THE REVIEW PETITION . 6. AFTER CONSIDE RING THE RIVAL SUBMISSIONS OF BOTH THE PARTIES, WE FIND THAT NO MISTAKE IN THE ORDER OF THE LD CIT(A) COULD BE POINTED OUT BY LD D.R. IT IS SUBMITTED BY LD D.R. THAT THE DEPARTMENT HAS NOT ACCEPTED THE DECISION OF HONBLE JHARKHAND HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA). HENCE, AS ON DATE THE DECISION OF HON'BLE JURISDICTIONAL HIG H COURT IS VALID AND BINDING. WE FIND THAT THE HON'BLE JHARKHAND HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA) HELD AS UNDER: - ITA NO.62/RAN/2017 ASSESSMENT YEAR : 2013 - 14 : P A G E 4 | 5 23. LEARNED COUNSEL FOR THE APPELLANT SUBMITTED THAT IT HAS BEEN ORDERED BY THE A.O. THAT INTEREST BE CHARGED AS PER RULE. INTEREST CAN BE LEVIED UNDER SECTIONS 234A & 234B OF THE ACT. IT IS SUBMITTED THAT IN VIEW OF THE JUDGMENT OF FULL BENCH OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. TEJ KUMARI VS. CIT REPORTED IN (2001) 114 TAXMAN 404 (PAT) (FB), THE INTEREST CANNOT BE LEVIED OVER THE ASSESSED INCOME AND IT CAN BE LEVIED ONLY ON THE INCOME DECLARED IN THE RETURN. THE REVENUE PREFERRED S.L.P. BEFORE THE HON'BLE SUPREME COURT AGAINST THE SAID JUDGMENT OF THE FULL BENCH OF PATNA HIGH COURT WHICH WAS DISM ISSED BY THE HON'BLE SUPREME COURT ON MERITS VIDE ORDER DATED 01/08/2000 BY SAYING THAT THERE IS NO MERIT IN THE APPEAL. 24. LEARNED COUNSEL FOR THE REVENUE COULD NOT DISPUTE THIS LEGAL POSITION. THEREFORE, SO FAR AS QUESTION OF LAW INVOLVED IN THIS APP EAL THAT WHETHER THE INTEREST COULD HAVE BEEN LEVIED AGAINST THE ASSESSED INCOME OF THE ASSESSEE UNDER SECTION 234A & 234B IS CONCERNED, IN VIEW OF THE FULL BENCH JUDGMENT OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. TEJ KUMARI, THE RE VENUE CAN LEVY THE INTEREST ONLY ON THE TOTAL INCOME DECLARED IN THE RETURNS AND NOT ON THE INCOME ASSESSED AND DETERMINED BY THE A.O. TO THAT EXTENT. THE ORDERS PASSED BY THE AUTHORITIES BELOW ARE ACCORDINGLY MODIFIED AND INTEREST SHALL BE CHARGEABLE IN THE LIGHT OF THE FULL BENCH JUDGMENT REFERRED ABOVE. 7 . FURTHER, WE ALSO FIND THAT THE REVIEW PETITION FILED BY THE REVENUE BEFORE THE HON'BLE JHARKHAND HIGH COURT BEING CIVIL REVIEW NO. 66/2013 IN THE CASE OF AJAY PRAKASH VERMA (SUPRA) HAS BEEN DISMIS SED ON 01/09/2015. THEREFOR E, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. ITA NO.62/RAN/2017 ASSESSMENT YEAR : 2013 - 14 : P A G E 5 | 5 8. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED 19/ 11 /2018. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER RANCHI ; DATED 19 / 11 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT. SECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT : ACIT. CIRCLE - 3, 2, BAGMATI ROAD, NORTHERN TOWN, JAMSHEDPUR 2. THE RESPONDENT. M/S. URANIUM CORPORATION OF INDIA LTD., JADUGODA MINES, JADUGODA, E - SINGHBHUM 3. THE CIT(A) - JHAMSHEDPUR 4. PR.CIT - JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//