Brakes India Limited, CHENNAI V. DCIT (LTU), CHENNAI

ITA 758/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61239 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2002-2003
• Appeal Filed On: 11-04-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: THANGADURAI V P
• Section: 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER] I.T.A.NO.758/MDS/2012 ASSESSMENT YEAR : 2002-03 BRAKES INDIA LIMITED PADI CHENNAI 600 050 VS THE DY. CIT (LTU) CHENNAI [PAN AAACB2533Q ] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI THANGADURAI V.P., ADVOCATE RESPONDENT BY : SHRI SHAJI P. JACOB, ADDL. CIT DATE OF HEARING : 26-06-2012 DATE OF PRONOUNCEMENT : 29-06-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE AS SESSEE AGAINST THE ORDER OF THE CIT(A)-LARGE TAXPAYER UNIT, CHENNAI, DATED 2 1.2.2012. 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS OF A PPEAL: 1. THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO LAW, FACTS AND CIRCUMSTANC ES OF THE CASE. 2. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN GR ANTING INTEREST UNDER SECTION 244A AT ` 11 ,46,600/- AS AGAINST ` 16,84,867/- CLAIMED BY THE APPELLANT . I.T.A.NO. 758/12 :- 2 -: 2.1 THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE APPRECIATED THAT ACCORDING TO PROVISIONS OF SE CTION 244A WHERE REFUND OF 'ANY AMOUNT' ARISES TO THE APP ELLANT OUT OF ADVANCE/TDS/TAX PAID, THE APPELLANT IS ENTIT LED TO INTEREST FROM THE 1 ST DAY OF APRIL OF THE ASSESSMENT YEAR/DATE OF PAYMENT TO THE DATE ON WHICH THE REFUND IS ACTUALLY GRANTED. THE ACTUAL INTEREST DUE TO THE A PPELLANT CALCULATED STRICTLY ON THE ABOVE BASIS AMOUNTING TO ` 16,84,8671-. HENCE THIS SUM SHOULD HAVE BEEN GRANTED AS INTEREST UNDER SECTION 244A. 2.2 THE APPELLANT RELIES ON THE DECISION OF THE HO NB'LE APEX COURT IN THE CASE OF SANDWIK ASIA LIMITED REPO RTED IN 280 ITR 643. 2.3 THE COMMISSIONER OF INCOMETAX (APPEALS) OUGHT T O HAVE APPRECIATED THAT IN ASSESSEE'S OWN CASE THE C HENNAI TRIBUNAL HAS ALLOWED THE ISSUE IN FAVOUR OF ASSESS EE IN ITA NOS. 1558 TO 1564 IN THE FOR AY 1986-87,89-90 TO 94 -95 BY AN ORDER DATED 06.02.2009. 3. THE APPELLANT CRAVES LEAVE TO FILE ADDITIONAL GROUNDS AT THE TIME OF HEARING. 3. THE A.R OF THE ASSESSEE, AT THE TIME OF HEARING, S UBMITTED THAT THE ONLY ISSUE INVOLVED IN THE APPEAL OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN CONFIRMING THE ORDER OF THE ASSESSI NG OFFICER IN GRANTING INTEREST U/S 244A AT ` 11,46,600/- AS AGAINST ` 16,84,867/- CLAIMED BY THE ASSESSEE. HE FAIRLY CONCEDED THAT THE CIT(A) HAS FOLLOWED THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF WHEELS INDIA LTD IN TAX CASE APPEAL NOS. 76 AND 77 OF 2008, DATED 27.4.2011 AND DECIDED THE ISSUE AGAINST THE ASSESSEE. HE ALSO PLACED A COPY OF THE SAID ORDER BEFORE US. HE SUBM ITTED THAT THE ISSUE IS COVERED AGAINST THE ASSESSEE AND IN FAVOUR OF T HE REVENUE AND I.T.A.NO. 758/12 :- 3 -: THEREFORE, HE IS RELYING ON THE GROUNDS OF APPEAL T AKEN BY THE ASSESSEE. 4. ON THE OTHER HAND, THE DR SUPPORTED THE ORDERS OF T HE LOWER AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER GR ANTED INTEREST U/S 244A OF THE ACT OF ` 11,46,600/- AS AGAINST ` 16,84,867/- CLAIMED BY THE ASSESSEE. BEFORE THE CIT(A), THE ASSESSEE, WI TH REGARD TO GRANTING OF INTEREST ON ANY AMOUNT OF REFUND DUE IRRESPECTIVE OF WHETHER TAX DUE OR INTEREST DUE, RELIED ON THE DEC ISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SANDVIK AS IA LTD, 280 ITR 643. HOWEVER, THE CIT(A), HELD THAT THE HON'BLE JURISDIC TIONAL HIGH COURT IN THE CASE OF WHEELS INDIA LTD (SUPRA) HAS HELD THAT WHERE REFUND HAD BEEN GRANTED WITHOUT ANY DELAY, THE QUESTION OF GRA NTING INTEREST ON INTEREST WILL NOT ARISE. THE CIT(A), THEREFORE, DISMISSED THE APPEAL OF THE ASSESSEE RELYING ON THE DECISION OF THE HON'BL E JURISDICTIONAL HIGH COURT IN THE CASE OF WHEELS INDIA LTD (SUPRA). 6. BEFORE US ALSO THE A.R HAS FAIRLY CONCEDED THAT THE ISSUE IS COVERED AGAINST THE ASSESSEE BY THE DECISION OF TH E HON'BLE I.T.A.NO. 758/12 :- 4 -: JURISDICTIONAL HIGH COURT IN THE CASE OF WHEELS IND IA LTD(SUPRA). WE, THEREFORE, DISMISS THE GROUNDS OF APPEAL OF THE AS SESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED ON FRIDAY, THE 29 TH OF JUNE, 2012, AT CHENNAI. SD/- SD/- (V. DURGA RAO) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 29 TH JUNE, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR