DCIT, Patiala V. M/S Patiala Distillers & Manufactures Ltd, Patiala

ITA 767/CHANDI/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6954 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 10-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Section: 153A; 234B; 132; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 767/CHD/2016 ASSESSMENT YEARS: 2013-14 THE DCIT, VS. M/S PATIALA DISTILLERS & CENTRAL CIRCLE, MANUFACTURES LTD. OPP. PATIALA STATE COLLEGE & EDUCATION PASSY ROAD, PATIALA PAN NO. AAACP8584H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI. ASHOK GOYAL DEPARTMENT BY : SHRI. RAVI SARANGAL DATE OF HEARING : 06/07/2017 DATE OF PRONOUNCEMENT : 30/08/2017 ORDER PER DR. B.R.R. KUMAR, AM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF THE LD. CIT(A)-5, LUDHIANA DT. 18/03/2016. 2. IN THIS APPEAL REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) WAS JUSTIFIED IN DELETING THE INTEREST U/S 234B CHARGED ON FINALLY DETERMINED INCOME U/S 245D(4)/TAX THEREON AMOUNTING TO RS. 7,33,55,270/- RS. 2,20,06,580/- RE SPECTIVELY, IGNORING THE FACT THAT RATIO OF THE JUDGMENT OF HONBLE SC IN THE CASE OF BRIJ LAL & OTHERS VS. CIT JALANDHAR RELATED TO TERMINAL POINT FOR LEVY OF INTEREST U/S 234B ONLY I .E. UPTO THE DATE OF ORDER U/S 245D(1). THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT HOWEVER TH E AMOUNT ON WHICH 234B HAS TO BE CHARGED UPTO THE DATE OF ORDER U/S 245D(1) IS ON TH E FINALLY DETERMINED INCOME U/S 245D(4) ALSO EVIDENT FROM THE PROVISIONS OF SEC 234 B(2A) THOUGH INSERTED W.E.F. 01/06/2015. 3. BRIEF FACTS OF THE CASE ARE THAT THE SEARCH U/S 132 OF THE INCOME TAX ACT, 1961 HEREINAFTER CALLED AS 'ACT' WAS CONDUCTED ON 2 3.09.2010 AT THE PREMISES OF THE M/S PATIALA DISTILLERS & MANUFACTURES LTD. OPP. STATE COLLEGE OF EDUCATION, PASSEY ROAD, PATIALA -147001 CONSEQUENT UPON WHICH PROCEEDINGS U/S 153A OF THE ACT WERE INSTITUTED AGAINST THE APPLICANT COMPA NY IN RESPECT OF A.YRS. 2005- 06 TO 2010-11. FOR A.Y. 2011-12, NOTICE U/S 143(2) OF THE ACT WAS ISSUED ON 17.11.2011 AND THE ASSESSEE FILED HIS RETURN OF INC OME ON 29.09.2011. DURING THIS SEARCH OPERATION, BESIDES LOOSE DOCUMENTS, REGISTER S, BOOKS ETC. CASH TO THE 2 TUNE OF RS. 56,25,000/- WAS FOUND AS AGAINST RS. 12 ,69,280/- REFLECTED IN THE BOOKS OF ACCOUNT. JEWELLERY WORTH RS.1.58 CRORES WAS ALSO DETECTED. 4. SUBSEQUENTLY, THE ASSESSEE FILED AN SETTLEMENT A PPLICATION U/S 245C(1) OF THE INCOME TAX ACT, 1961 BEFORE THE HON'BLE INCOME TAX SETTLEMENT COMMISSION, NEW DELHI ON 04.02.2013. THE STATED APP LICATION WAS ALLOWED TO BE PROCEEDED WITH U/S 245D(1) OF THE ACT ON 14.02.2013 . VIDE ORDER DATED 15.04.2013 U/S 245D(2C) OF THE ACT AND THE HON'BLE INCOME TAX SETTLEMENT COMMISSION SUBSEQUENTLY HAS PASSED ORDER U/S 245D(4 ) DATED 06.06.2014 MAKING A SETTLEMENT OF INCOME AT RS. 10,65,00,000/- AGAINST TOTAL RETURNED INCOME OF THE ASSESEE OF RS. 4,45,03,976/-. THE COMPUTATION OF TAX AND INTEREST ON THE INCOME A S DETERMINED BY HONBLE ITSC IS AS UNDER: TOTAL INCOME DETERMINED U/S 245D(4) BY HON'BLE ITSC 7,33,55,270/ - TAX ON ABOVE INCOME 2,20,06,580/ - SURCHARGE @ 7.5% 16,50,494/ - TAX + SURCHARGE 2,36,57,074/- EDUCA TION CESS AND SC @ 3% 7,09,712/ - TOTAL TAX WITH SC AND EC 2,43,66,786/- ADD : INTT. U/S 234B 12,71,881/ - ADD : INTT. U/S 234C 4,12,242/ - TOTAL TAX AND INTEREST 2,60,50,909/- LESS : TDS 8,25,864/ - LESS : TAXES PAID (ADVANCE TAX, SELF ASTT. AND OTHE RS) 1,11,67,669/ - BALANCE TAX PAYABLE 1,40,57,376/- ROUNDED OFF TO 1,40,57,380/- 5. THE ASSESSING OFFICER HAS CHARGED INTEREST UNDER SECTION 234B OF THE ACT ON THE TOTAL INCOME SETTLED UNDER SECTION 245D(4) V IDE THE ORDER UNDER SECTION 154 DT. 15/01/2015. 6. AGGRIEVED AGAINST THE CHARGING OF THE INTEREST U NDER SECTION 234B THE ASSESSEE WENT BEFORE THE LD. CIT(A) WHO HAS DIRECTE D NOT TO CHARGE INTEREST UNDER SECTION 234B. 7. REVENUE FILED APPEAL BEFORE US. 8. LD. DR VEHEMENTLY ARGUED THAT INTEREST UNDER SE CTION 234B HAS BEEN RIGHTLY LEVIED KEEPING IN VIEW THE JUDGMENT OF ITSC VIDE ITS ORDER NO. 3 WB/DURGAPUR/2012-13/52/IT WHILE THE LD. AR RELIED ON THE ORDER OF THE LD. CIT(A). 9. WE HAVE GONE THROUGH THE ORDER OF THE SETTLEMENT COMMISSION WHERE THE DIRECTION WAS GIVEN TO CHARGE INTEREST UNDER SECTIO N 234B AS PER THE DECISION OF HONBLE SUPREME COURT IN CASE OF BRIJLAL AND OTHERS VS. CIT[2010] 328 ITR 377. SINCE THE DIRECTION OF SETTLEMENT COMMISSION ARE VE RY CLEAR AND THE CIT(A) IS DULY FOLLOWED THE COMPUTATION AS DIRECTED BY THE SE TTLEMENT COMMISSION WE DECLINE TO INTERFERE IN THE ORDER OF THE LD. CIT(A) . 10. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. THE ORDER IS PRONOUNCED ON 30/08/2017 IN THE OPEN C OURT. SD/- SD/- (DIVA SINGH) (DR. B.R.R. K UMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER AG COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DEPARTMENTAL REPRESENTATIVE