TCS-E SERVE LTD., MUMBAI V. A.C.I.T. CIRCLE 9(3), MUMBAI

ITA 8442/MUM/2011

• Counselvise Citation: 844219914 RSA 2011
• Duration Of Justice: 2 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 13-05-2014
• Assessment Year: 2002-2003
• Appeal Filed On: 12-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PITAMBER DAS
• Assessee Lawyers: A V SONDE SR
• Section: 244A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEM BER . / ITA NO. 8441 / MUM./201 1 ( / ASSESSMENT YEAR : 200 1 02 ) . / ITA NO. 8442/ MUM./201 1 ( / ASSESSMENT YEAR : 2002 03 ) . / ITA NO. 8 443/ MUM./201 1 ( / ASSESSMENT YEAR : 2003 04 ) . / ITA NO. 8444/ MUM./201 1 ( / ASSESSMENT YEAR : 2004 05 ) . / ITA NO. 8445/ MUM./201 1 ( / ASSESSMENT YEAR : 2005 06 ) TCS E SERVE LIMITED BLOCK NO.B 3 NIRLON KNOWLEDGE PARK GOREGAON (EAST) MUMBAI 400 063 .. / APPELLANT V/S COMMISSIONER OF INCOME TAX (A) 20 THE ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 9(3), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .... / RESPONDENT ./ PERMANENT A CCOUNT NUMBER AAACC4480F / ASSESSEE BY : MR. A.V. SONDE , SR. COUNSEL / REVENUE BY : MR. PITAMBER DAS / DATE OF HEARING 13 .0 5 .201 4 / DATE OF ORDE R 13.05 .2014 TCS E SERVE LIMITED 2 / ORDER / PER BENCH THE PRESENT APPEAL S HA VE BEEN PREFERRED BY THE ASSESSEE CHALLENGING THE IMPUGNED SEPARATE ORDER S OF EVEN DATE 13 TH SEPTEMBER 2011 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) XX, MUMBAI, FOR THE ASSESSMENT YEAR 200 1 02 TO 2005 06 RESPECTIVELY. SINCE ALL THESE APPEALS PERTAIN TO THE SAME ASSESSEE INVOLVING COMMON ISSUE ARISING OUT OF IDENTICAL SET OF FACTS AND CIRCUMSTANCES, THEREFORE, AS A MATTER OF CONVENIENCE, THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOS ED OFF BY WAY OF THIS CONSOLIDATED ORDER. 2 . THE SOLE COMMON ISSUE INVOLVED IN ALL THE YEARS UNDER APPEAL IS THAT, THE LEARNED COMMISSIONER (APPEALS) OUGHT TO HAVE HELD THAT THE ASSESSEE WAS ENTITLED TO INTEREST ON THE AMOUNT OF INTEREST DUE TO THEM UNDER S ECTION 244A, WHICH WAS SHORT GRANTED TO THEM, AS, IF SUCH INTEREST HAD BEEN GRANTED TO THE ASSESSEE WHEN DUE, THE ASSESSEE WOULD HAVE EARNED INCOME THEREON. 2 . BEFORE US, THE LEARNED SENIOR COUNSEL, MR. ARVIND SONDE, ON BEHALF OF THE ASSESSEE, SUBMITTED THAT BEFORE THE AUTHORITIES BELOW, APART FROM THE CONTENTION OF ALLOWABILITY OF INTEREST ON THE REFUND, ANOTHER CONTENTION WAS RAISED THAT SINCE THE CORRECT AMOUNT OF INTEREST ON REFUND WAS NOT GRANTED ON TIME, THEREFORE, THEY ARE ENTITLED TO INTEREST ON INTER EST. THE LEARNED COMMISSIONER (APPEALS) HAS DECIDED THIS ISSUE AGAINST THE ASSESSEE ON THE GROUND THAT THERE IS NO PROVISION UNDER THE INCOME TAX ACT, 1961, FOR PROVIDING INTEREST ON INTEREST. AGAINST THIS FINDING OF THE LEARNED COMMISSIONER (APPEALS), THE ASSESSEE HAS PREFERRED THESE APPEALS. HE SUBMITTED THAT E ARLIER, TCS E SERVE LIMITED 3 VARIOUS HIGH COURTS HAVE DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE RELYING UPON THE DECISION OF THE HON'BLE SUPREME COURT IN SANDVICK ASIA LTD. V/S CIT, [2006] 280 ITR 643 (SC). NOW, HE C ANDIDLY ADMITTED THAT IN THE WAKE OF LATEST SUPREME COURT DECISION IN CIT V/S GUJARAT FLUORO CHEMICALS, [2014] 42 TAXMAN.COM 001, ORDER DATED 18 TH SEPTEMBER 2013 AND [2014] 43 TAXMAN.COM 350, ORDER DATED 26 TH FEBRUARY 2014 , T HE HON'BLE SUPREME COURT HAS H E LD THAT THE DECISION OF SANDVICK ASIA LTD. (SUPRA) HAS BEEN MISINTERPRETED, AS IN THAT CASE, THE REVENUE WAS DIRECTED TO PAY THE INTEREST ON STATUTORY INTEREST BECAUSE OF INORDINATE DELAY AND SAID DECISION WAS PASSED ON THE FACT S OF THAT CASE. THE HON'BLE SUPREME COURT HAS CLARIFIED THAT ONLY INTEREST PROVIDED UNDER THE STATUTE WHICH CAN ALONE BE CLAIMED BY THE ASSESSEE , AND NOT ANY OTHER INTEREST ON STATUTORY INTEREST. ACCORDINGLY, THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER TO COMPUTE INTEREST IN ACCORDANCE WITH THE DECISION OF THE HON'BLE SUPREME COURT. THE LEARNED DEPARTMENTAL REPRESENTATIVE TOO AGREED WITH THIS PROPOSITION. 3 . AFTER CONSIDERING THE DECISION OF THE HON'BLE SUPREME COURT IN CIT V/S GUJARAT FLUORO CHEMICALS (SUPRA ), WE FIND THAT THE HON'BLE SUPREME COURT HAS CATEGORICALLY HELD THAT THE PROVISIONS OF SECTION 244A ONLY PROVIDES FOR INTEREST ON REFUND UNDER VARIOUS CONTINGENCIES , AND ONLY THE INTEREST AS PROVIDED IN THE STATUTE CAN BE CLAIMED BY THE ASSESSEE AND NO OT HER INTEREST ON SUCH INTEREST , WHICH HAS BEEN TO BE COMPUTED UNDER SECTION 244A . THUS, THE GROUND RAISED IN ALL THESE APPEALS RAISING A PLEA THAT IT IS ENTITLED TO INTEREST ON THE AMOUNT OF INTEREST DUE TO THEM UNDER SECTION 244A WHICH WAS SHORT GRANTED TO THEM , W OULD HAVE TO BE DECIDED IN THE LIGHT OF THE DECISION OF THE HON'BLE SUPREME COURT CITED SUPRA. CONSEQUENTLY, W E SET ASIDE THE IMPUGNED ORDERS PASSED BY THE LEARNED COMMISSIONER (APPEALS) FOR TCS E SERVE LIMITED 4 THE ASSESSMENT YEAR 2001 02 TO 2005 06 AND RESTORE THE IS SUE BACK TO THE FILE OF THE ASSESSING OFFICER, WHO SHALL COMPUTE THE INTEREST WHICH IS ALLOWABLE UNDER SECTION 244A . A ND IN ACCORDANCE WITH THE JUDGMENT OF THE HON'BLE SUPREME COURT, GRANT INTEREST WHICH THE ASSESSEE IS ENTITLED TO. THUS, THE GROUND RAISED BY THE ASSESSEE IN ALL THE YEARS UNDER APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4 . YEAR 2001 02 TO 2005 06 4. IN THE RESULT, ASSESSEES APPEAL S FOR THE ASSESSMENT YEAR 2001 02 TO 2005 06 ARE ALLOWED FOR STATISTICAL PURPOSES. 13 TH MAY 2014 ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MAY 2014 SD/ - SANJAY ARORA ACCOUNTANT MEMBER SD/ - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 13 TH MAY 2014 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / THE REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI