DEEP WATER SERVICES (INDIA) LTD, MUMBAI V. DCIT RG 6(2), MUMBAI

ITA 847/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8952 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 17-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH E, MU MBAI BEFORE SHRI P.K. BANSAL, VICE-PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 847/MUM/2015 (ASSESSMENT YEAR-2010-11) DEEP WATER SERVICES (INDIA) LTD. ENERGY HOUSE, 81, DR. D.N. ROAD, MUMBAI-400001. PAN: AABCD7108E VS. DCIT RANGE- 6(2), ROOM NO. 504, AAYAKAR BHAVAN, M.K. MARG, MUMBAI-400020. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI V. JUSTIN (SR. DR) DATE OF HEARING : 30.10.2017 DATE OF PRONOUNCEMENT : 30.10.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THIS APPEAL BY ASSESSEE U/S 253 OF THE INCOME-TAX A CT (THE ACT) IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-12, MUMBAI DATED 05.11.2014 FOR ASSESSMENT YEAR (AY) 2010-11. THE ASSESSEE HAS RAIS ED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN NOT ADJUDICATING THE APPEAL FILED BEFORE HIM. 2. THE ASSESSING OFFICER ERRED IN LEVYING INTEREST UNDER SECTION 234C OF RS.12,21,073/-. 3. THE APPELLANT DENIES ITS LIABILITY TO INTEREST UNDER SECTION 234C LEVIED FOR DEFERMENT OF FIRST INSTALMENT OF ADVANCE TAX. 4. THE ASSESSING OFFICER ERRED IN HOLDING THAT THE APPELLANT HAS DEFERRED THE PAYMENT OF FIRST ADVANCE TAX INSTALMENT OF RS 4,00, 00,000/- AND LEVYING INTEREST UNDER SECTION 234C. ITA NO. 847/M/2 015- DEEP WATER SERVICES (INDIA) LTD. 2 5. THE APPELLANT SUBMITS THAT THE INTEREST LEVIED U NDER SECTION 234C IS HIGHLY EXCESSIVE AND NEEDS TO BE REDUCED CONSIDERABLY. 6. WITHOUT PREJUDICE TO GROUND NO. 2 TO 4, THE APPE LLANT SUBMITS THAT THE LEVY OF INTEREST UNDER SECTION 234C SHOULD HAVE BEEN RESTRI CTED TO THAT LEVIABLE FOR ONE DAY. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME FOR RELEVANT AY ON 24.09.2010 DECLARING TOTAL INCOME OF RS. 82,53,54,480/-. THE ASSESSMENT WAS COMPLETED ON 14.03.2013 U/S 143( 3) OF THE ACT ACCEPTING THE RETURN INCOME. THE INTEREST WAS CHARG ED IN ACCORDANCE WITH THE PROVISION OF SECTION 234A, 234B & 234C OF THE A CT. THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) RAISING THE GROUNDS OF APPEAL THAT THE ASSESSING OFFICER (AO) ERRED IN LEVYING THE INTERES T U/S 234C FOR DEFERMENT OF FIRST INSTALLMENT OF ADVANCE TAX OF RS. 4,00,00, 000/-. THE PLEA OF ASSESSEE WAS NOT ACCEPTED AND THE APPEAL OF THE ASSESSEE WAS DISMISSED. THUS, FURTHER AGGRIEVED BY THE ORDER OF LD. CIT(A), THE A SSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 3. NONE APPEARED ON BEHALF OF ASSESSEE DESPITE REPEATE D CALL. THE ASSESSEE IS NOT APPEARING BEFORE THIS TRIBUNAL DESPITE THE SERV ICE OF NOTICES. HAVING LEFT NO OPTION, WE HEARD THE LD. DEPARTMENTAL REPRESENT ATIVE (DR) FOR THE REVENUE AND PROCEEDED TO DECIDE THE APPEAL ON THE B ASIS OF MATERIAL AVAILABLE ON RECORD. THE LD. DR FOR THE REVENUE ARG UED THAT THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE AS THE ASSESSEE CH ALLENGED THE VALIDITY OF STATUTORY INTEREST CHARGED U/S 234C OF THE ACT. ITA NO. 847/M/2 015- DEEP WATER SERVICES (INDIA) LTD. 3 4. WE HAVE CONSIDERED THE SUBMISSION OF LD. DR FOR THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE PERUSAL OF TH E ASSESSMENT ORDER REVEALS THAT THE ASSESSMENT ORDER WAS PASSED ACCEPTING THE DECLARED INCOME OF THE ASSESSEE. ACCORDINGLY, THE AO CHARGED INTEREST U/S 234A, 234B & 234C OF THE ACT. THE ASSESSEE CHALLENGED THE LEVY OF INTERE ST U/S 234C ON THE GROUND THAT THE AO ERRED IN CHARGING THE INTEREST ON DEFER RED PAYMENT OF FIRST INSTALLMENT OF RS. 4,00,00,000/-. THE AO CHARGED TH E INTEREST OF RS.12,21,047/- ON SUCH DEFERRED PAYMENT OF FIRST IN STALLMENT OF ADVANCE TAX. WE HAVE SEEN THAT BEFORE THE LD. CIT (A) THE ASSESS EE FURNISHED STATEMENT OF FACTS. IN THE STATEMENT OF FACTS THE ASSESSEE CONTE NDED THEY GAVE INSTRUCTIONS TO THEIR BANKER I.E. ABN AMRO BANK ON 15.06.2009 FO R PAYMENT OF ADVANCE TAX THE BANK EXECUTED THEIR INSTRUCTION ON 16.05.2009. THE LD CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE HOLDING THAT THE DISPUTE CANNOT BE ADJUDICATED AS THE CONTENTION OF ASSESSEE IS NOT EMANATING FROM THE ORDER OF ASSESSING OFFICER. THE LEVY OF INTEREST IS CONSE QUENTIAL. THE LD CIT(A) GRANTED LIBERTY TO THE ASSESSEE TO APPROACH THE AO IF THEY HAVE ANY GRIEVANCE TO THE INCORRECT COMPUTATION OF INTEREST UNDER SECTION 234C OF THE ACT. NONE, APPEARED BEFORE US ON BEHALF OF ASSESSE E NOR SUBSTANTIATED THE CONTENTION RAISED IN THE APPEAL NOR FILED ANY WRITT EN SUBMISSIONS TO SUBSTANTIATE THEIR CONTENTION. WE HAVE SEEN THAT TH E LEVY OF INTEREST IS MANDATORY / STATUTORY IN NATURE. THE LEVY OF INTERE ST SEEMS TO BE IN ACCORDANCE WITH THE PROVISIONS OF LAW. NO CONTRARY MATERIAL IS AVAILABLE ON ITA NO. 847/M/2 015- DEEP WATER SERVICES (INDIA) LTD. 4 RECORD TO TAKE DIFFERENT VIEW THAN THE STATUTORY PR OVISION. THUS, WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN LEVYING THE INT EREST U/S 234C OF THE ACT. HENCE, THE APPEAL OF THE ASSESSEE IS DISMISSED. HOW EVER, THE ASSESSEE IS GRANTED LIBERTY TO APPROACH THE AO IF THEY HAVE ANY GRIEVANCE TO THE INCORRECT COMPUTATION OF INTEREST UNDER SECTION 234 C OF THE ACT. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30TH DAY OF OCTOBER 2017. SD/- SD/- (P.K. BANSAL) (PAWAN SINGH) VICE-PRESIDENT JUDICIAL MEMBER MUMBAI; DATED 30/10/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT.REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/