GREAVES COTTON LTD, MUMBAI V. ASST CIT CIR 6(3), MUMBAI

ITA 7573/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100830 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 12-08-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 24-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKASH KR AGARWAL
• Assessee Lawyers: ARTI VISSANJI
• Keywords: Rectification of order
• Section: 154

Judgement Text

GREAVES COTTON LIMITED ITA NO. 7573 /MUM/20 1 3 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G , MUMBAI BEFORE SHRI AMIT SHUKLA , JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER ITA NO. : 7 5 73 /MUM/20 1 3 ( ASSESSMENT YEAR: 2010 - 11 ) GREAVES COTTON LIMITED , INDUSTRY MANOR, APPASAHEB, MARATHE MARG, PRABHADEVI, MUMBAI 400 02 5 .: PAN: AAAC G 2 062 M VS ASST COMMISSIONER OF INCOME TAX CIRCLE 6 (3), AAYAKAR BHAVAN, MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS ARTI VISSANJI RESPONDENT BY : SHRI VIKASH KR. AGARWAL /DATE OF HEARING : 12 - 0 8 - 201 5 / DATE OF PRONOUNCEMENT : 14 - 08 - 201 5 ORDER , . . : PER A MIT SHUKLA, J M : THE AFORESAID APPEAL HA S BEEN FILED BY THE ASSESSEE A GAINST ORDER DATED 18 . 1 0 .20 1 3 , PASSED BY CIT (A) - 1 2 , MUMBAI IN RELATION TO THE ORDER PASSED U/S 154 FOR THE AY 2010 - 11 . 2. THE ASSESSEE IS MAINLY AGGRIEVED BY NON - GRANTING OF CREDIT OF D IVIDEND DISTRIBUTION TAX OF RS. 21,30,393/ - IN TERMS OF PROVISIONS OF SECTION 115 - O(1A)(I)(A) OF THE INCOME - TAX ACT. 3. THE BRIEF FACTS ARE THAT, THE ASSESSEES RETURN OF INCOME WAS PROCESSED U/S 143(1) ON 02.05.2011 ON A TOTAL INCOME OF RS. 134,81,34,050 / - , THEREBY RAISING A DEMAND OF R S. 1,48,27,586/ - AS AGAINST THE CLAIM OF REFUND OF RS. 86,31,344/ - . THE DEMAND WAS MAINLY ARISING OUT OF NON - CREDIT OF DIVIDEND DISTRIBUTION TAX PAID AT RS. 2,07,51,473/ - . T HER EA F TE R, T HE ASSESSEE FILED RECTIFICATION APPLIC ATION U/S 154 ON 29.03.2012 BEFORE THE ASSESSING OFFICER GREAVES COTTON LIMITED ITA NO. 7573 /MUM/20 1 3 2 ATTACHING THEREWITH , COPIES OF CHALLAN REGARDING PAYMENT OF DIVIDEND DISTRIBUTION TAX AND REQUESTED THE ASSESSING OFFICER TO GIVE CREDIT FOR THE SAME. IN THE ORDER PASSED U/S 154 ON 24.04.2012, THE L D. ASSESSING OFFICER THOUGH GAVE CREDIT FOR MOST OF THE PAYMENT OF DIVIDEND DISTRIBUTION TAX, HOWEVER, DID NOT GRANT THE CREDIT O F THE AMOUNT OF RS. 2 1 ,30,394/ - , WHICH WAS THE AMOUNT OF DIVIDEND DISTRIBUTION TAX PAID BY ITS SUBSIDIARY. AGGRIEVED BY THE SAI D ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHEREIN THE LD. CIT(A) HELD TH AT, FROM THE RECTIFICATION ORDER OF ASSESSING OFFICER AS WELL AS APPLICATION OF THE ASSESSEE THIS DISPUTE DOES NOT EMANATE. HENCE, SAME DOES NOT WARRANT ANY ADJUDICA TION. ACCORDINGLY , HE DISMISSED THE ASSESSEES APPEAL ON THE GROUND THAT IT IS NOT ARISING FROM THE ORDER OF THE ASSESSING OFFICER. 4. AFTER HEARING BOTH THE PARTIES, WE FIND THAT ONLY DISPUTE BEFORE US IS THAT, THE LD. ASSESSING O FFICER HAS FAILED TO GIV E CREDIT OF DIVIDEND DISTRIBUTION TAX OF RS. 21,30,393/ - PA I D BY ITS SUBSIDIARY COMPANY , GREAVES LEASING FINANCE LTD. SUCH A CREDIT HAS BEEN CLAIMED UNDER THE PROVISIONS OF SECTION 115 - O(1A)(I)(A). BEFORE US, THE LD. COUNSEL , MS. ARTI VISSANJI, DREW OUR AT TENTION TO THE CHALLAN OF AXIS BANK FOR THE PAYMENT OF TAX OF RS. 21,30,393/ - BY GREAVES LEASING FINANCE LTD. FROM THE RECORDS WE FIND THAT T HE CREDIT FOR THIS AMOUNT HAS NOT BEEN GIVEN BY THE ASSESSING OFFICER WHICH HE WAS OBLIGED TO DO SO IN ACCORDANCE WITH THE PROVISIONS OF SECTION 115 O (1A) (I) (A) . ACCORDINGLY THE ASSESSING OFFICER IS DIRECTED TO GIVE THE CREDIT FOR THE AMOUNT OF RS. 21,30,393/ - AFTER VERIFYING THE CHALLAN FOR THE PAYMENT OF TAX BY THE SUBSIDIARY COMPANY. AS REGARDS THE OBSERVATION OF TH E CIT(A) THAT THIS ISSUE IS NOT EMANATING FROM THE ORDER PASSED U/S 154 , CANNOT BE ACCEPTED, AS IN THE APPLICATION FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER SEEKING RECTIFICATION TO THE EXTENT OF GRANTING CREDIT OF DIVIDEND DISTRIBUTION TAX PAYMEN T OF RS. 2,07,51,473/ - THE ASSESSEE HAS ALSO ENCLOSED CHALLANS OF TAX ES PAID INCLUDING PAYMENT OF RS. 21,30,393/ - PAID BY SUBSIDIARY OF THE ASSESSEE COMPANY. THE GREAVES COTTON LIMITED ITA NO. 7573 /MUM/20 1 3 3 ASSESSING OFFICE R HAS GIVEN CREDIT FOR THE MAJORITY OF THE PAYMENT S , BUT HAS FAILED TO GIVE CREDIT FOR THIS AMOUNT. THIS IS PURELY A MISTAKE APPARENT FROM RECORD, RECTIFIABLE WITHIN THE SCOPE OF SECTION 154 . T HE LD. CIT(A) WA S THUS OBLIGED TO ADJUDICATE THE SAME. IN ANY CASE, W E HAVE A L READY DIRECTED THE ASSESSING OFFICER TO GIVE CREDIT F OR THE AMOUNT OF DIVIDEND DISTRIBUTION TAX PAID BY ITS SUBSIDIARY AFTER VERIFICATION . THUS, THE GROUND RAISED BY THE ASSESSEE IS TREATED AS ALLOWED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE S TANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST , 2015. SD/ - SD/ - ( RAMIT KOCHAR ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 14 TH AUGUST , 2015 / COPY TO: - 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT (A) - 1 2 , MUMBAI. 4) THE CIT 6 , MUMBAI. 5) , , / THE D.R. G BENCH, MUMBAI. 6) \ COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT . REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS