HARSH ESTATES P.LTD, MUMBAI V. ASST CIT CC 31, MUMBAI

ITA 673/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100737 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 20-07-2015
• Assessment Year: 1999-2000
• Appeal Filed On: 29-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P DANIEL
• Section: 234B

Judgement Text

M/S HARSH ESTATES P LTD. ITA NO. 673 /MUM/20 1 4 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H , MUMBAI BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI GOPAL KEDIA , ACCOUNTANT MEMBER ITA NO. : 673 /MUM/20 1 4 ( ASSESSMENT YEAR: 1999 - 2000 ) M/S HARSH EST ATES P LTD. , 32, MADHULI, DR. ANNIE BESANT ROAD, NEHRU CENTRE, WORLI, MUMBAI - 400 018 .: PAN: AA ACH 3480 K VS ACIT CC - 31, ROOM NO. 413 , AAYAKAR BHAVAN, M K ROAD, CHURCHGATE, MUMBAI - 400 02 0 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DHARMESH SHAH RESPONDENT BY : DR P DANIEL /DATE OF HEARING : 2 4 - 08 - 201 5 / DATE OF PRONOUNCEMENT : 28 - 08 - 201 5 ORDER , . . : PE R AMIT SHUKLA, J M : THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 20 . 1 1 .2013 , PASSED BY CIT (A) - 40 , MUMBAI , FOR THE ASSESSMENT YEAR 1999 - 2000 IN RELATION TO ORDER PASSED U/S 143( 3) R.W.S. 25 4 . 2. THE ONLY ISSUE RAISED BY THE ASSES S EE IS LEVY OF INTEREST U/S 234A, 234B & 234C. THE EFFECTIVE GROUND RAISED IN THIS REGARD READS AS UNDER: THE LD. C OMMISSIONER OF I NCOME T AX (A PPEALS ) HAS ERRED I N LAW AND IN FACTS THAT IN CONFIRMING THE LEVY OF INTEREST U/S 234A, 234B AND 234C OF THE ACT. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN NOT APPRECIATING THAT THE INCOME ASSESSED IN THE HANDS OF THE APPELLANT WERE SUBJECTED TO THE PROVISIONS M/S HARSH ESTATES P LTD. ITA NO. 673 /MUM/20 1 4 2 OF TDS AND HENCE ON THE SAID AMOUNT OF TAX NO INTEREST CA N BE COMPUTED U/S 234B AND 234C OF THE ACT. 3 . AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE STANDS COVERED AGAINST THE ASSESSEE IN PRINCIPLE BY THE EARLIER ORDER OF THE TRIBUNAL. HOWEVER, THE TRIBUNAL HAS GIVEN DIRECTIONS TO THE ASSESSING OFFICER FOR RECOMPUTING THE INTEREST LIABILITY AFTER REDUCING THE AMOUNT OF TAX DEDUCTIBLE AT SOURCE. THE RELEVANT OBSERVATION AND THE FINDING GIVEN IN THE ASSESSMENT YEAR 2007 - 08 ; AND FOR THE ASSESSMENT YEAR 2002 - 03 AND 2009 - 10 ARE AS UNDER : 6. NOW WE ARE LEFT WITH DEPARTMENTAL APPEAL FOR A.Y 2007 - 08. THIS WAS ALSO STATED TO BE COVERED BY THE AFOREMENTIONED DECISION OF TRIBUNAL IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2008 - 09 (SUPRA) AND THE RELEVANT OBSERVATIONS OF TRIBUNAL ARE FOUND IN PARA - 6, WHICH IS REPRODUCED BELOW: 5. SO FAR AS, CHARGING OF INTEREST U/S 234A, 234B AND 234C IS CONCERNED THE ID. COUNSEL FOR THE ASSESSEE CONTENDED THAT IT MAY BE SENT TO THE FILE OF THE LD. ASSESSING OFFICER. HOWEVER, THE LD. SPECIAL COUNSEL CONTEND ED THAT THE LEVY OF INTEREST IS MANDATORY THEREFORE IT SHOULD BE DECIDED AGAINST THE ASSESSEE. HOWEVER THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT IT MAY BE SENT TO THE ASSESSING OFFICER FOR ACTUAL CALCULATION PURPOSES ONLY. AGREED, LEVY OF INTEREST IS MANDATORY AND SOMETIMES CONSEQUENTIAL DEPENDING UPON THE FACTS OF EACH CASE. WE NOTE THAT IDENTICAL ISSUE AROSE BEFORE THE TRIBUNAL IN THE AFORESAID CASES THEREFORE FOLLOWING THE REASONING CONTAINED THEREIN WE DIRECT THE ASSESSING OFFICER TO RECOMPUTED TH E INTEREST LIABILITY AFTER REDUCING THE AMOUNT OF TAX DEDUCTABLE AT SOURCE. WE DIRECT ACCORDINGLY, THUS, THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. THE LD. AO IS TO DECIDE AS PER THE PROVISIONS OF THE LAW. M/S HARSH ESTATES P LTD. ITA NO. 673 /MUM/20 1 4 3 6.1 ACCORDINGLY, AFTER HEARING BOTH THE PA RTIES WE PASS SIMILAR ORDER WITH SIMILAR DIRECTIONS AS HAVE BEEN GIVEN BY THE TRIBUNAL IN RESPECT OF ASSESSMENT YEAR 2008 - 09 AND FOR STATISTICAL PURPOSES THE APPEAL FILED BY THE REVENUE IS CONSIDERED TO BE ALLOWED IN THE MANNER AFORESAID . X X X 6. SO FAR AS, CHARGING OF INTEREST U/S 234A, 234B AND 234C IS CONCERNED THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT IT MAY BE SENT TO THE FILE OF THE LD. ASSESSING OFFICER. HOWEVER, THE LD. SPECIAL COUNSEL CONTENDED THAT THE LEVY OF INTEREST IS MANDATORY TH EREFORE IT SHOULD BE DECIDED AGAINST THE ASSESSEE. HOWEVER THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT IT MAY BE SENT TO THE ASSESSING OFFICER FOR ACTUAL CALCULATION PURPOSES ONLY. AGREED, LEVY OF INTEREST IS MANDATORY AND SOMETIMES CONSEQUENTIAL DEPEN DING UPON THE FACTS OF EACH CASE. WE NOTE THAT IDENTICAL ISSUE AROSE BEFORE THE TRIBUNAL IN THE AFORESAID CASES THEREFORE FOLLOWING THE REASONING CONTAINED THEREIN, WE DIRECT THE ASSESSING OFFICER TO RECOMPUTED THE INTEREST LIABILITY AFTER REDUCING THE AMO UNT OF TAX DEDUCTABLE AT SOURCE AND DECIDE AS PER THE PROVISIONS OF LAW. WE DIRECT ACCORDINGLY, THUS, THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES . 4. T HUS, RESPECTFULLY FOLLOWING THE JU DIC IAL PRECEDENCE IN THE ASSESSEES OWN CASE, WE ALSO ON SIMILAR L IN E , DIRECT THE ASSESSING OFFICER TO RE - COMPUTE THE INTEREST LIABILITY U/S 234A, 234B & 234C AFTER REDUCING THE AMOUNT OF TAX DEDUCTIBLE AT SOURCE. THUS, GROUND S RAISED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. M/S HARSH ESTATES P LTD. ITA NO. 673 /MUM/20 1 4 4 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST , 2015. SD/ - SD/ - ( GOPAL KEDIA ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBE R MUMBAI, DATE: 28 TH AUGUST , 2015 / COPY TO: - 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT (A) - 40 , MUMBAI . 4) THE CIT CENTRAL - II , MUMBAI . 5) , , / THE D.R. H BENCH, MUMBAI. 6) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS