PUDUMJEE INDUSTRIES LTD ( FORMERLY KNOWN AS PUDMJEE AGRO INDUSTRIES LTD), MUMBAI V. JCIT SP RG 16, MUMBAI

ITA 8959/MUM/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1675 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-03-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-01-2013
• Assessment Year: 1996-1997
• Appeal Filed On: 22-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 244A; 154; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C, MUMBAI BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTAT MEMBER I.T.A. NO. 8959/M/2010 ASSESSMENT YEAR: 1996-97 M/S. PUDUMJEE INDUSTRIES LTD., (FORMERLY KNOWN AS PUDMJEE AGRO INDUSTRIES LTD), 60, DR. V.B. GANDHI MARG, MUMBAI-400 023. PAN: AAACP 0487 B VS. JCIT, SP, RG-16, AAYAKAR BHAVAN, MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIJAY MEHTA RESPONDENT BY : SHRI RAJARSHI DWIVEDY, SR. DR DATE OF HEARING: 17.1.2013 DATE OF ORDER: 08.3.2013 O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 22.12.2010 IS AGAINST THE ORDER OF CIT (A)-5, MUMBAI DATED 15.10.2010 FOR THE ASSESSMENT Y EAR 1996-97. 2. IN THIS APPEAL, ASSESSEE FILED THE CONCISE GROUND S WHICH READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD CIT (A) HAS ERRED IN HOLDING THAT THE APPELLANT IS NOT ENTITLED TO INTEREST ON REFUND WHICH WAS DELAYED FROM 25.11.1997 TO 18.11.1999. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD CIT (A) OUGHT TO HAVE HELD THAT THE APPELLANT IS EN TITLED FOR INTEREST ON INTEREST FROM THE DATE OF ISSUE OF REFUND ORDER IE 18.11.19 99 TILL THE DATE OF ACTUAL PAYMENT OF INTEREST. 3. THE ISSUES RAISED ABOVE RELATES TO GRANT OF INTE REST ON THE REFUND AND ALSO THE GRANT OF INTEREST ON INTEREST. IN THIS REGARD, SHRI VIJAY MEHTA, LD COUNSEL FOR THE ASSESSEE MENTIONED THAT THE ASSESSEE IS ENTITLED TO RECEIVE INTEREST ON REFUND FOR THE DELAYED PERIOD FROM 25.11.1997 TO 18.11.1999 AND TH EREAFTER, ASSESSEE IS ALSO ENTITLED FOR INTEREST ON INTEREST FROM THE DATE OF ISSUE OF REFUND ORDER OR TILL THE DATE OF ACTUAL PAYMENT OF INTEREST. IN THIS REGARD, LD C OUNSEL MENTIONED THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 28.11.1996. ASSESSEE RECEIVED INTIMATION U/S 2 143(1)(A) ON 25.11.1997 DETERMINING THE REFUNDABLE AMOUNT OF RS. 14.92 LACS. BUT, ASSESSEE NEVER RECEIVED THE REFUND AMOUNT SO D ETERMINED BY THE AO. SUBSEQUENTLY, ASSESSMENT WAS PASSED U/S 143(3) OF T HE ACT ON 31.3.1998. AO DETERMINED THE CORRECT REFUND VIDE RECTIFICATION OR DER U/S 154 OF THE ACT ON 17.3.1999. FINALLY, THE CORRECT REFUND ORDER WAS R ECEIVED ONLY ON 18.11.1999. IN THIS REGARD, LD COUNSEL RELIED ON THE HONBLE SUPRE ME COURT ORDER IN THE CASE OF CIT VS. H.E.G. LTD . [2010] 324 ITR 331 (SC) AND MANY OTHER DECISIONS TO SUGGEST THAT INTEREST COMPONENT PARTOOK THE AMOUNT DUE U/S 244A OF THE ACT. THEREFORE, THE ASSESSING OFFICER IS UNDER OBLIGATION TO RELEASE TH E INTEREST ON THE REFUND DETERMINED FROM 26.11.1997 TILL 18.11.1999. IN PRINCIPLE, WE AGREE WITH THE VIEWS OF THE ASSESSEE. THEREFORE, CONSIDERING THE SAID APEX COU RTS JUDGMENT, WE DIRECT THE AO TO GRANT (A) INTEREST ON THE REFUNDABLE AMOUNT; AN D (B) INTEREST ON INTEREST FOR THE PERIOD 26.11.1997 TO 18.11.1999. TO THAT EXTENT, T HE OBSERVATIONS MADE BY THE AO IN PARA 4 AND 4.1 OF THE IMPUGNED ORDER ARE NOT PRO PER AND WITHOUT ANY MERITS. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED . 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 8 TH DAY OF MARCH, 2013. SD/- SD/- (R.K. GUPTA) (D. KARUNAKARA RAO) JUDICIAL MEMBER A CCOUNTANT MEMBER DATE : 8.3.2013 AT :MUMBAI OKK COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (A), CONCERNED. 4. THE CIT CONCERNED. 5. THE DR C, BENCH, ITAT, MUMBAI. 6. GUARD FILE. // TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI