Electronics Corporation of India Limited, Hyderabad, Hyderabad V. ACIT, TDS-Circle-2(1), Hyderabad, Hyderabad

ITA 72/HYD/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2584 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 12-01-2017
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: C S SUBRAMANYAM
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 72/HYD/2017 ASSESSMENT YEAR: 2011-12 M/S ELECTRONICS CORPORATION OF INDIA LIMITED, HYDERABAD. PAN AAACE4809L VS. ACIT, TDS CIRCLE- 2(1) HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.S. SUBRAMANYAM, REVENUE BY : SMT. SUMAN MALIK DATE OF HEARING : 24-04-2017 DATE OF PRONOUNCEMENT : 28-04-2017 ORDER PER B. RAMAKOTAIAH, AM THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF CIT(A)-8, HYDERABAD DATED 26-10-2016. THE ISSUE IN THIS APPEAL IS WITH REFERENCE TO INTEREST CHARGED U/S 201(1A) OF THE IT ACT. ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 2. THE LD. CIT(A) ERRED IN SUSTAINING THE INTEREST U/S 201(1A) OF THE IT ACT 3. THE LD. CIT(A) OUGHT TO HAVE RESTRICTED THE INTEREST U/S 201(1A) FROM THE DUE TO DATE OF PAYMENT TO THE DATE OF FILING OF RETURN BY THE PAYEE, AS PER THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGE (P) LTD. (2007) 293 ITR 226 (SC). 2 ITA NO. 72/HYD/2017 M/S. ELECTRONICS CORP. IND LTD, HYDERABAD GROUND NOS. 1 & 4 ARE GENERAL IN NATURE. 2. BRIEFLY STATED, ASSESSEE IS A CENTRAL GOVERNMENT ORGANIZATION AND IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF ELECTRONICS EQUIPMENT AND OTHERS. IT FILED ITS STATEMENT IN FORM NO. 26Q FOR QUARTER-4. AN INTIMATION WAS PASSED ON 20.06.2014 BY RAISING A DEMAND OF RS. 7,25,640/- TOWARDS SHORT DEDUCTIONS, INTEREST ON LATE PAYMENT, INTEREST ON SHORT DEDUCTION ETC. ON AN APPEAL LD. CIT(A) NOTICED THAT THE DEMAND U/S 201(1A) OF THE IT ACT CANNOT BE SUSTAINED AS ASSESSEE HAS FURNISHED CERTIFICATES ISSUED BY CHARTED ACCOUNTANTS. FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGE (P) LTD. (2007) 293 ITR 226 (SC), THE DEMAND U/S 201(1) OF THE IT ACT HAS BEEN CANCELLED TO AN EXTENT OF RS. 5,11,106/-. THE BALANCE AMOUNT PERTAINING TO 201(1A) OF THE IT ACT HAS BEEN CONFIRMED BY LD. CIT(A) WITHOUT GIVING ANY REASON. HIS BRIEF ORDER IN PARA 6.2 IS AS UNDER: 6.2 CONSIDERING THE FACTS, ISSUE AND CIRCUMSTANCES OF THE INSTANT CASE AND KEEPING IN VIEW THE DECISION OF HONBLE SUPREME COURT BROUGHT OUT SUPRA, THE DEMAND RAISED TOWARDS SHORT DEDUCTION AMOUNTING RS. 5,11,106/- IS DELETED AND THE INTEREST CHARGED U/S 201(1A) IS CONFIRMED, AS IT IS MANDATORY. HENCE, GROUND NOS. 2 TO 4 ARE PARTLY ALLOWED. 3. ASSESSEE IS AGGRIEVED ON THE CONFIRMATION OF THE INTEREST OF SEC. 201(1A) OF THE IT ACT AND IT WAS THE SUBMISSION THAT LD. CIT(A) OUGHT TO HAVE RESTRICTED THE INTEREST U/S 201(1A) OF THE IT ACT FROM THE DUE DATE OF THE PAYMENT TO THE DATE OF FILING OF RETURN BY THE PAYEE. 3 ITA NO. 72/HYD/2017 M/S. ELECTRONICS CORP. IND LTD, HYDERABAD 4. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE AGREE WITH ASSESSEES CONTENTIONS. HAVING ACCEPTED THAT THE SHORT DEMAND RAISED U/S 201(1) OF THE IT ACT CANNOT BE SUSTAINED AND THE DEMAND HAVING BEEN CANCELLED, IT IS INCUMBENT ON THE CIT(A) TO GRANT CONSEQUENTIAL RELIEF FOR THE INTEREST CHARGED U/S 201(1A) OF THE IT ACT ACCORDINGLY. 5. FOLLOWING PRINCIPLES LAID DOWN BY THE HONBLE SUPREME COURT, WE HEREBY DIRECT THE A.O TO MODIFY THE ORDER AND CHARGE INTEREST FROM THE DUE DATE OF PAYMENT TO THE DATE OF FILING OF RETURN BY THE PAYEE. THE GROUNDS RAISED BY ASSESSEE ARE ACCORDINGLY CONSIDERED ALLOWED. 6. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2017. SD/- SD/- (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED:28 TH APRIL, 2017. KRK 1) M/S ELECTRONICS CORPORATION OF INDIA LTD., BILLS SECTION, SMD BUILDING, ECIL, ECIL POST, HYDERABAD-62 2) ACIT, TDS-CIRCLE-2(1), HYDERABAD. 3) CIT(A) -8, HYDERABAD 4) ADDL.CIT,TDS RANGE-1 HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE