Assistant Commissioner of INcome Tax Circle-2(1)(1), Bangalore V. M/s Canbank Financial Services Lt d, Bangalore

ITA 743/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4603 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 31-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C H SUNDAR RAO
• Assessee Lawyers: RAMASUBRAMANIAN
• Keywords: Revised return
• Section: 143(3); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE S HRI N.V. VASUDEVAN , JUDICIAL MEMBER AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER I.T . A. NO. 743 /BANG/20 17 (ASSESSMENT YEAR : 20 13 - 14 ) ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), BA NGALORE. . APPELLANT. VS. CANBANK FINANCIAL SERVICES LTD., NAVEEN COMPLEX, 6 TH FLOOR, NO.14, M.G. ROAD, BANGALORE - 560 001 . .. RES PONDENT. APPELLANT BY : SHRI C.H. SUNDAR RAO, CIT - 1 (D.R) R E SPONDENT BY : SHRI RAMASUBRAMANIAN, C A DATE OF H EARING : 13.06.2018. DATE OF P RONOUNCEMENT : 15 .06 .201 8 . O R D E R PER SHRI JASON P BOAZ, A .M . : THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 , BANGALORE DT.5.12.2016 FOR THE ASSESSMENT YEAR 20 13 - 14. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE AS UNDER : - 2 IT A NO. 743 /BANG/201 7 2.1 THE ASSESSEE, A COMPANY ENGAGED IN PROVISION OF FINANCIAL SERVICES, FILED ITS RETURN OF INCOME FOR ASSESSMENT YEAR 2013 - 14 ON 28.9.2013 DECLARING NIL INCOME. A REVISED RETURN WAS FILED ON 28.3.2014 DECLARING NIL INCOME. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') VIDE ORDER DT.25.1.2016, WHEREIN THE ASSESSEE'S INCOME WAS DETERMINED AT RS.13,80,25,482 AFTER SETTING OFF OF BROUGHT FORWARD LOSSES AMOUNTING TO RS.8,27,32,471. BOOK PROFITS WERE COMPUTED AT RS.1,86,57,035. 2.2 AGGRIEVED BY THE ORDER OF ASSESSMENT DT.25.1.2016 FOR ASSESSMENT YEAR 2013 - 14, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (APPEALS) 2, BA NGALORE ON THE ISSUE OF WHETHER ALLOWANCE OF MAT CREDIT ON TDS AND ADVANCE TAX ARE TO BE SET OFF FIRST IN COMPUTING TAX PAYABLE / REFUND AND INTEREST UNDER SECTION 234A, 234B & 234C OF THE ACT, ETC. THE LEARNED CIT (APPEALS) VIDE THE IMPUGNED ORDER DT.5. 12.2016, ALLOWED THE ASSESSEE'S CLAIM FOLLOWING THE DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. SAMI LABS LTD. (2011) 54 DTR 311 (KAR). 3 IT A NO. 743 /BANG/201 7 3.1 REVENUE, BEING AGGRIEVED BY THE ORDER OF THE CIT (APPEALS) 2, BANGALORE DT.5.12.2016 F OR ASSESSMENT YEAR 2013 - 14, HAS FILED THIS APPEAL WHEREIN IT HAS RAISED THE FOLLOWING GROUNDS : 3.2 THE LEARNED DEPARTMENTAL REPRESENTATIVE WAS HEARD IN SUPPORT OF THE GROUNDS RAISED (SUPRA). 3.3 PER CONTRA, THE LEARNED AUTHORISED REPRESENTATI VE FOR THE ASSESSEE SUBMITTED THAT, ON THE ISSUE IN QUESTION IN THIS APPEAL, THERE IS NO ERROR IN THE IMPUGNED ORDER OF THE LEARNED CIT (APPEALS) IN ALLOWING THE 4 IT A NO. 743 /BANG/201 7 ASSESSEE'S CLAIM AS SHE FOLLOWED THE BINDING DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN T HE CASE OF SAMI LABS LTD. (SUPRA). 3.4.1 WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD; INCLUDING THE JUDICIAL PRONOUNCEMENT CITED. THE ISSUE FOR CONSIDERATION AND ADJUDICATION BEFORE US IS WHETHER MAT CREDIT IS TO BE ALLOWED FIRST ON TDS AND ADVANCE TAX ARE TO BE SET OFF FIRST IN COMPUTING TAX PAYABLE / REFUND AND INTEREST UNDER SECTION 234A, 234B & 234C, ETC WE FIND THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE BINDING DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF CIT VS. SAMI LABS LTD. (SUPRA), WHEREIN AT PARA 9 THEREOF IT IS HELD AS UNDER : 9. THE MAT CREDIT IS TO BE SET OFF FIRST, THEREAFTER TDS, THEN THE ADVANCE TAX PAID AND THEN THE TAX PAID ALONG WITH RETU RNS. HOWEVER, NO INTEREST IS CLAIMABLE AGAINST THE MAT CREDIT. THEREFORE, IT IS CLEAR THAT UNDER NO CIRCUMSTANCES, MAT CREDIT CAN BECOME THE SUBJECT MATTER OF REFUND. IT IS ONLY LIABLE TO BE ADJUSTED FOR FIVE YEARS AND IT DOES NOT CARRY ANY INTEREST. 3 .4.2 RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF SAMI LABS LTD. (SUPRA), WE UPHOLD THE IMPUGNED 5 IT A NO. 743 /BANG/201 7 ORDER OF THE LEARNED CIT (APPEALS) ON THIS ISSUE. CONSEQUENTLY, THE GROUNDS RAISED BY REVENUE ARE DISMISSED. 4 . IN THE RESULT, REVENUE S APPEAL FOR ASSESSMENT YEAR 2013 - 14 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 15TH DAY OF JUNE, 201 8 . SD/ - (N.V. VASUDEVAN) JUDICIAL MEMBER SD/ - (JASON P BOAZ) ACCOUNTANT MEMBER BANGALORE, DT. 15 .06.2018. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.