TMS ENTERPRISES PRIVATE LIMITED, CHENNAI V. ACIT COMPANY CIRCLE 3 (1), CHENNAI

ITA 692/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2724 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 26-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CLEMENT RAMESH KUMAR CITD R
• Assessee Lawyers: G SEETHARAMANC A
• Section: 54

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI S.JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.692/CHNY/2018 / ASSESSMENT YEAR :2006-07 M/S.TMC ENTERPRISES PRIVATE LIMITED, NO.65(OLD NO.31) PALANI TOWERS, VENKATANARAYANA ROAD, T.NAGAR,CHENNAI -600 017. VS. THE ACIT, COMPANY CIRCLE 3(1), CHENNAI-34. [PAN AAACT 1103 A] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.G.SEETHARAMAN,C.A !' /RESPONDENT BY : MR.CLEMENT RAMESH KUMAR, CIT,D.R # $ %& / DATE OF HEARING : 25 - 1 0 - 201 8 '( %& / DATE OF PRONOUNCEMENT : 25 - 1 0 - 201 8 ! / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-11, CHENNAI IN ITA NO.690/CIT(A)-11/2013-14 DATED 04.12.2017 FOR THE ASSESSMENT YEAR 2006-07. ITA NO.692/CHNY/2018 :- 2 -: 2. SHRI G.SEETHARAMAN REPRESENTED ON BEHALF OF TH E ASSESSEE AND SHRI CLEMENT RAMESH KUMAR REPRESENTED ON BEHA LF OF THE REVENUE. 3. IT WAS SUBMITTED BY LD.A.R THAT THE ASSESSEE HAD FILED ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR, WHICH WAS PROCESSED U/S.143(1) OF THE ACT. WHEN PROCESSING T HE RETURN U/S.143(1) OF THE ACT, AS THERE WAS A MISMATCH IN T HE TDS, THE SAME WAS INTIMATED TO THE ASSESSEE AND THE ASSESSEE HAD RESPONDED AND PRODUCED THE NECESSARY TDS CERTIFICATES. IT WAS A S UBMISSION THAT THE CREDIT FOR THE TDS HAD BEEN GRANTED AND INTEREST U/ S.244A OF THE ACT HAD BEEN GRANTED TO THE ASSESSEE. SUBSEQUENTLY, NOT ICE U/S.154 DATED WAS ISSUED TO THE ASSESSEE FOR WITHDRAWING THE INTE REST U/S.244A OF THE ACT AND THE ORDER U/S.154 OF THE ACT WAS PASSED FOR WITHDRAWING THE INTEREST GRANTED U/S.244 OF THE ACT ON 28.08.20 13 TO AN EXTENT OF ` 1,36,303/-. IT WAS A SUBMISSION THAT ON APPEAL BEFO RE THE LD.CIT(A), THE SUBMISSION OF THE ASSESSEE WAS NOT CONSIDERED A ND THE ORDER PASSED U/S.154 OF THE ACT WAS CONFIRMED. IT WAS A S UBMISSION THAT THE ISSUE OF LEVY OF INTEREST U/S.244A WAS NOW SQUARELY COVERED BY THE DECISION OF THE BOMBAY HIGH COURT IN THE CASE OF CI T VS. LARSEN AND TOUBRO LTD. REPORTED IN [2011] 330 ITR 340 (BOM.) W HEREIN IT HAS BEEN HELD THAT WHERE THE ASSESSEE AFTER DEDUCTING AND DEPOSITING TDS ON TIME, BUT HAD FILED THE TDS CERTIFICATES DUR ING THE ASSESSMENT ITA NO.692/CHNY/2018 :- 3 -: PROCEEDINGS, INTEREST U/S.244A CANNOT BE DENIED. IT WAS A SUBMISSION THAT CLEARLY THE FACT THAT THE ISSUE HAD REACHED TH E BOMBAY HIGH COURT AND THE HONBLE BOMBAY HIGH COURT HAS TAKEN THE VIE W IN FAVOUR OF THE ASSESSEE SHOWS THAT THE ISSUE IS HIGHLY DEBATAB LE ISSUE AND THE SAME CANNOT BE ADJUDICATED IN AN ORDER PASSED U/S.1 54 OF THE ACT. IT WAS A SUBMISSION THAT THE ORDER PASSED U/S.154 OF T HE ACT BY THE LD. ASSESSING OFFICER, WHICH WAS CONFIRMED BY THE LD.CI T(A), WAS LIABLE TO BE QUASHED. 4. IN REPLY, THE LD.D.R VEHEMENTLY SUPPORTED THE O RDER OF THE LD. ASSESSING OFFICER AND THE ORDER OF THE LD.CIT(A ). LD.D.R SUBMITTED THAT THE ASSESSEE HAD DELAYED IN PRODUCIN G THE TDS CERTIFICATES BEFORE THE LD. ASSESSING OFFICER, IN C ONSEQUENCE INTEREST U/S.244A OF THE ACT HAD RIGHTLY BEEN DENIED BY THE LD. ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PE RUSAL OF THE FACTS IN THE PRESENT CASE CLEARLY SHOW THAT THE ISS UE AS TO WHETHER INTEREST U/S.244A OF THE ACT IS LIABLE TO BE PAID T O ASSESSEE, WHERE THE TDS HAS BEEN DEDUCTED IN TIME AND PAID TO THE GOVER NMENT ACCOUNT, BUT THERE IS A DELAY IN SUBMISSIONS OF THE NECESSAR Y TDS CERTIFICATES, HAS BEEN ADJUDICATED BY THE HONBLE BOMBAY HIGH COU RT IN THE CASE OF CIT VS. LARSEN AND TOUBRO LTD., REFERRED TO SUPRA. THUS, CLEARLY THE ISSUE IS A DEBATABLE ISSUE AND IT CANNOT BE A SUBJE CT MATTER OF ITA NO.692/CHNY/2018 :- 4 -: RECTIFICATION U/S.154 OF THE ACT. THIS BEING SO, WE ARE OF THE VIEW THAT THE ORDER PASSED U/S.154 OF THE ACT BY THE LD. ASSE SSING OFFICER IS UNSUSTAINABLE AND CONSEQUENTLY, WE QUASH THE SAME. THOUGH ON MERITS, THE ASSESSEE IS ENTITLED TO THE INTEREST U /S.244A OF THE ACT, IN VIEW OF THE DECISION OF HONBLE BOMBAY HIGH COURT I N THE CASE OF CIT VS. LARSEN AND TOUBRO LTD., REFERRED TO SUPRA WE AR E NOT GOING INTO THE MERITS IN SO FAR AS THE ORDER PASSED U/S.154 OF THE ACT HAS BEEN QUASHED ON ACCOUNT OF THE ISSUE BEING A DEBATABLE I SSUE 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 25 TH OCTOBER, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) ' # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER ) $ / CHENNAI * / DATED: 25 TH OCTOBER, 2018. K S SUNDARAM + !%,- . -% / COPY TO: 1 . / APPELLANT 3. # /% () / CIT(A) 5. -23 !%4 / DR 2. !' / RESPONDENT 4. # /% / CIT 6. 35 6$ / GF