M/s Amritsar Sugar MIlls, Amritsar. V. The Income-tax Officer, Amritsar.

ITA 69/ASR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0522 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-07-2016
• Assessment Year: 1973-1974
• Appeal Filed On: 04-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KANWAL
• Keywords: Rectification of order
• Section: 244A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.69(ASR)/2015 ASSESSMENT YEAR:1973-74 PAN: AAACT9255R M/S. AMRITSAR SUGAR MILLS, VS. INCOME TAX OFFICER, AMRITSAR. WARD 2(1), AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. TARUN BANSAL, ADV. RESPONDENT BY: SH. S.S. KANWAL, DR DATE OF HEARING: 12/07/2016 DATE OF PRONOUNCEMENT: 18/07/2016 ORDER PER A.D. JAIN, JM: THIS IS THE ASSESSEES APPEAL FOR THE ASSESSMENT Y EAR 1973-74 AGAINST THE ORDER DATED 03.11.2014, PASSED BY THE LD. CIT(A). AMRITSAR THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: 1. THAT THE LD. AO PASSED THE NON-SPEAKING ORDER A ND RAISED A DEMAND U/S 154 @ RS.1,90,155/- INSTEAD OF A REFUND OF RS.4,89,863/- WITHOUT GIVING ANY CALCULATION OF THE SAME. 2. THAT THE LD. CIT(A) HAS ALSO PASSED THE NON-SPEA KING ORDER AND WRONGLY DISALLOWED THE INTEREST ON THE INTEREST AMOUNT. 3. THAT THE AO HAS NOT GIVEN THE APPEAL EFFECT OF T HE ORDER OF CIT(A). 2. THE FACTS OF THE CASE ARE THAT THE AO PASSED A N ON-SPEAKING ORDER AND RAISED A DEMAND OF RS.1,90,155/- U/S 154 OF THE ACT INSTEAD OF A REFUND OF RS.4,89,863/- WITHOUT GIVING ANY CALCULAT ION OF THE SAME. THE ITA NO.69(ASR)/2015 A.Y. 1973-74 2 LD. CIT(A) ALSO PASSED A NON-SPEAKING ORDER AND DI SALLOWED THE INTEREST ON THE INTEREST AMOUNT. 3. WHILE GIVING EFFECT TO THE ITAT ORDER, DATED 01. 04.2005, PASSED IN ITA NO.26/ASR/2002, A REFUND OF RS.14,44,878/- WAS CALCULATED BY THE A.O. LATER, THE ASSESSEE FILED AN APPLICATION FOR R ECTIFICATION, ASKING FOR A FURTHER REFUND DUE TO WRONG CALCULATION OF INTEREST UNDER SECTION 244A AND NON-ISSUANCE OF INTEREST CREDIT UNDER SECTION 2 20(2), AMOUNTING TO RS.50,315/-. A RECTIFICATION ORDER U/S 154 WAS PASS ED BY THE AO ON 07.03.2007, GIVING TO THE ASSESSEE A REFUND OF RS.5 ,65,796/- ON 08.06.2007. VIDE ORDER DATED 12.08.2010, THE AO REC TIFIED THE AFORESAID ORDER DATED 03.07.2010, OBSERVING THAT THE CALCULAT ION MADE IN THE RECTIFICATION ORDER DATED 07.03.2007 WAS INCORRECT, AS THE INTEREST FOR THE PERIOD FROM 01.06.1997 TO 27.11.1997 SHOULD HAVE BE EN CALCULATED THE ON PRINCIPAL AMOUNT OF RS.811,350/- INSTEAD OF ON RS.15,69,694/-, I.E., THE PRINCIPAL + INTEREST AMOUNT AT SIMPLE INTEREST UNDER SECTION 244A. IT WAS OBSERVED THAT INSTEAD OF RS.3,33,559/-, INTERES T FOR THE PERIOD FROM 01.04.1996 TO 27.11.1997 OUGHT TO BE RS.1,72,410/- AND THAT THUS, THE EXCESS REFUND OF RS.1,61,149/- HAD BEEN MADE OVER T O THE ASSESSEE, WHICH WAS RECOVERABLE FROM THE ASSESSEE ALONG WITH INTEREST UNDER SECTION 234D OF THE ACT. 4. VIDE THE IMPUGNED ORDER, THE LD. CIT(A) DIRECTED THE AO TO GIVE DETAILS OF COMPUTATION OF REFUND WITH THE DETAILS OF PERIODS, AS PER THE PROVISIONS OF SECTION 244A IN ACCORDANCE WITH THE D ECISION OF ITA NO.69(ASR)/2015 A.Y. 1973-74 3 THE HONBLE SUPREME COURT, RENDERED VIDE JUDGMENT D ATED 18.03.2013, IN THE CASE OF CIT, GUJRAT VS. GUJARAT FLUORO CHE MICALS IN S.L.P. NO.11406 OF 2008. 5. THE GRIEVANCE OF THE ASSESSEE IS THAT THE AO HAS WRONGLY RAISED A DEMAND OF RS.1,90,155/-, I.E., ALLEGED EXCESS REFUN D OF INTEREST AMOUNTING TO RS.1,61,149/- AND INTEREST THEREON, UN DER SECTION 234D AMOUNTING TO RS.29,006/-, INSTEAD OF A REFUND OF RS .4,89,863/-, WITHOUT GIVING ANY CALCULATION TO THE SAME. 6. THIS GRIEVANCE OF THE ASSESSEE IS FOUND TO BE CO RRECT. THE LD. DR HAS NOT BEEN ABLE TO SHOW FROM THE RECORD ANY SUCH CALCULATION TO HAVE BEEN GIVEN BY THE AO. ACCORDINGLY, IN THE INTEREST OF JUSTICE, THIS MATTER IS REMITTED TO THE FILE OF THE A.O. TO GIVE THE CA LCULATION OF THE DEMAND RAISED AT RS.1,90,515/-. 7. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/07/ 2016. SD/- SD/- (T.S. KAPOOR) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER /SKR/ DATED: 18/07/2016 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. AMRITSAR SUGAR MILLS, AMRITSAR 2. THE ITO WARD 2(1), ASR. 3. THE CIT(A), ASR 4. THE CIT, ASR 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER