DCIT 2(1), MUMBAI V. DELAGE FINANCE & INVESTM,ENT LTD, MUMBAI

ITA 7675/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3783 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 15-05-2013
• Assessment Year: 1999-2000
• Appeal Filed On: 14-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS R M MADHAVI
• Assessee Lawyers: NITISH KHATRI
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI . . , . ! , '# ' $ BEFORE SHRI I.P. BANSAL, JM AND SHRI SANJAY ARO RA, AM ./ I.T.A. NO. 7675/MUM/2011 ( % % % % & & & & / ASSESSMENT YEARS : 1999-2000 ACIT(OSD)2(1),AAYKAR BHAVAN, ROOM NO.575, 5 TH FLOOR, M.K.ROAD, MUMBAI 400 020. % % % % / VS. M/S.DELAGE FINANCE & INVESTMENT LTD. LAXMI BLDG., 6, SHOORJI, VALLABHDAS MARG, BALLARD ESTATE, MUMBAI - 400 001. ' '# ./ ( ./ PAN/GIR NO. : AAACD 1563A ( ') / APPELLANT ) .. ( *+') / RESPONDENT ) ') , ' / APPELLANT BY: MRS. R.M.MADHAVI *+') - , ' / RESPONDENT BY : SHRI NITISH KHATRI % - .# / DATE OF HEARING : 15/05/2013 / & - .# / DATE OF PRONOUNCEMENT : 15/05/2013 '0 / O R D E R PER I.P.BANSAL,J.M: THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DI RECTED AGAINST ORDER PASSED BY LD. CIT(A)-4, MUMBAI DATED 19/8/2011 FOR ASSESSM ENT YEAR 1999-2000. THE GROUNDS OF APPEAL READ AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF CASE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN ALLOWING RELIEF TO THE ASSESSEE TO THE EXT ENT IMPUGNED IN THE GROUNDS ENUMERATED BELOW: 1. THE ORDER OF THE CIT(A) IS OPPOSED TO LAW AND FACTS OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING INTEREST LEVIED U/S. 234D WITHOUT APPRECIA TING THE FACT THAT HE REASSESSMENT U/S. 143(3) R.W.S. 147 WAS COMPLETED O N 4.3.2005 WHEN THE SECTION WAS APPLICABLE. ./ I.T.A. NO. 7675/MUM/2011 ( % % % % & & & & / ASSESSMENT YEARS : 1999-2000 2 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT TH E TIME OF HEARING, THE DECISION OF CIT(A) MAY BE SET ASIDE AND THAT OF THE AO BE RESTORED. 2. THE IMPUGNED ASSESSMENT ORDER DATED 30/8/2010 HAS BEEN PASSED UNDER SECTION 143(3) R.W.S. 254 OF THE INCOME TAX ACT, 1961 (THE ACT), WHEREIN THE INCOME OF THE ASSESSEE HAS BEEN ASSESSED AT RS. 51,80,928/-. THE RETURN WAS FILED BY THE ASSESSEE AT A LOSS OF RS.56,63,860/-. THE AMOUNT OF RS.1,08,44,785/- WAS ADDED TO THE INCOME OF THE ASS ESSEE ON ACCOUNT OF INTEREST ATTRIBUTABLE TO BORROWED FUNDS FOR INVESTMENT IN FI RM. ACCORDINGLY, INTEREST OF RS.2,58,578/- WAS LEVIED UNDER SECTION 234D. THE IN TEREST SO LEVIED WAS REQUESTED TO BE DELETED IN APPEAL FILED BEFORE LD. CIT(A). LD. CIT(A) HAS DELETED SUCH INTEREST ON THE GROUND THAT THE PROVISIONS OF SECTION 234D ARE APPLICABLE W.E.F. 1/6/2003 AND ARE NOT APPLICABLE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. THE DEPARTMENT IS AGGRIEVED WITH SU CH RELIEF GIVEN BY LD. CIT(A) AND HAS FILED AFOREMENTIONED APPEAL. 3. AT THE TIME OF HEARING IT WAS BROUGHT TO OUR NOT ICE BY LD. A.R THAT THE AFOREMENTIONED ADDITION OF RS.1,08,44,785/- HAS BE EN DELETED BY THE TRIBUNAL IN RESPECT OF ASSESSMENT YEAR 1999-2000 VIDE ITS ORDER DATED 30/1/2013 IN ITA NO.7518/MUM/2011 BY FOLLOWING THE DECISION GIVEN IN RESPECT OF ASSESSMENT YEAR 2001-02, WHEREIN SIMILAR ADDITION WAS MADE AND WAS DELETED BY THE TRIBUNAL. THE COPIES OF ORDERS OF THE TRIBUNAL IN RESPECT OF ASSESSMENT YEARS 1999-2000 AND 2001-02 WERE FILED BEFORE US AND COPY WAS ALSO GIVEN TO LD. D.R. THUS IT WAS PLEADED BY LD. AR THAT THE DEPARTMENTA L APPEAL HAS BECOME INFRUCTUOUS AS ASSESSEE HAS NO LIABILITY FOR INTER EST PAYABLE UNDER SECTION 234D. 4. ON THE OTHER HAND, LD. D.R RELIED UPON THE ORDER PASSED BY A.O. 5. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTENT IONS HAVE CAREFULLY BEEN CONSIDERED. THE APPEAL FILED BY THE DEPARTMENT IS TO BE DISMISSED FIRSTLY; ON ACCOUNT OF LOW TAX EFFECT. THE DELETION OF INTERE ST WHICH HAS BEEN CONTESTED BY REVENUE IS ONLY A SUM OF RS. 2,58,578/-, WHICH IS B ELOW THE AMOUNT OF RS.3.00 LACS. THE DEPARTMENT SHOULD NOT HAVE FILED THE APP EAL AGAINST SUCH DELETION. SECONDLY; THE ADDITION WHICH WAS MADE BY THE AO HAS BEEN DELETED BY THE ./ I.T.A. NO. 7675/MUM/2011 ( % % % % & & & & / ASSESSMENT YEARS : 1999-2000 3 TRIBUNAL AND ACCORDING TO THE PROVISIONS OF SECTIO N 234D(2), WHERE AS A RESULT OF AN ORDER UNDER SECTION WHICH INTER-ALIA INCLUDE SE CTION 254 THE AMOUNT OF REFUND GRANTED UNDER SUB-SECTION (1) OF SECTION 143 IS HELD TO BE CORRECTLY ALLOWED, EITHER IN WHOLE OR IN PART, AS THE CASE MA Y BE, THEN, THE INTEREST CHARGEABLE, IF ANY, UNDER SUB-SECTION (1) SHALL BE REDUCED ACCORDINGLY. IN THIS CASE THE ADDITION MADE BY THE AO AMOUNTING TO RS. 1 ,08,44,785/- HAS BEEN DELETED AND AS A RESULT THE ASSESSABLE INCOME REMAI NS A NEGATIVE FIGURE OF RS. 56,63,860/- UPON WHICH NO TAX IS CHARGEABLE. THERE FORE, FOLLOWING THE AFOREMENTIONED ORDER OF THE TRIBUNAL IT IS HELD TH AT REFUND WAS CORRECTLY ALLOWED TO THE ASSESSEE AND IF IT IS SO THEN THERE CANNOT BE ANY INTEREST WHICH REMAINS TO BE CHARGEABLE UNDER SECTION 234D OF THE ACT. THERE FORE, ALSO THE DEPARTMENTAL APPEAL IS LIABLE TO BE DISMISSED. 6. IN VIEW OF THE ABOVE DISCUSSION THE APPEAL FILE D BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/05/2013 . '0 - & #' 1 2%3 15/05/2013 - 4 SD/- SD/- ( SANJAY ARORA) (I.P.BANSAL) /ACCOUNTANT MEMBER '# /JUDICIAL MEMBER MUMBAI; 2% DATED 15/05/2013 . % . .VM , SR. PS '0 '0 '0 '0 - -- - *.56 *.56 *.56 *.56 7' 7' 7' 7'6&. 6&.6&. 6&. / COPY OF THE ORDER FORWARDED TO : 1. ') / THE APPELLANT 2. *+') / THE RESPONDENT. 3. 8 ( ) / THE CIT(A)- 4. 8 / CIT 5. 694 *.% , , / DR, ITAT, MUMBAI 6. 4: ; / GUARD FILE. '0% '0% '0% '0% / BY ORDER, +6. *. //TRUE COPY// < << < / = = = = (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI