Chhatrapati Sambhaji Raje Sakhar Udyog Ltd., Aurangabad V. Deputy Commissioner of Income-tax,

ITA 981/PUN/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2907 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 12-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAVE
• Section: 244A; 54; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E , , !'#'' $ , % & BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM / ITA NO. 981/PN/2014 %' ( ')( / ASSESSMENT YEAR : 2007-08 CHHATRAPATI SAMBHAJI RAJE SAKHAR UDYOG LTD., DEENDYALNAGAR, CHITTEPIMPALGAON, AURANGABAD 431007 PAN : AABCC5358B ....... / APPELLANT ' / V/S. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AURANGABAD / RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI REVENUE BY : SHRI HITENDRA NINAVE / DATE OF HEARING : 06-01-2016 / DATE OF PRONOUNCEMENT : 08-01-2016 * / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEALS), AURANGABAD DATED 25 -02-2014 FOR THE ASSESSMENT YEAR 2007-08. THE ONLY ISSUE RAISED IN THE APPEAL BY THE ASSESSEE IS REJECTION OF PAYMENT OF INTEREST U/S . 244A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE AC T) ON THE 2 ITA NO. 981/PN/2014, A.Y. 2007-08 REFUND AMOUNT OF RS.13,69,500/- FROM THE DATE OF PAYMENT T O THE DATE OF REFUND. 2. THE FACTS OF THE CASE AS EMANATING FROM THE RECORD ARE: THE ASSESSEE IS ENGAGED IN MANUFACTURING AND SALE OF SUGAR, ALC OHOL AND ITS BI-PRODUCTS. THE ASSESSEE FILED ITS RETURN OF INCOME FOR T HE ASSESSMENT YEAR 2007-08 ON 31-10-2007 DECLARING TOTAL INCOME OF RS.1,16,37,760/-. THEREAFTER, THE ASSESSEE FILED REVISED RET URN OF INCOME ON 07-02-2008 DECLARING LOSS OF RS.42,33,522/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND ACCORDINGLY NOTICE U/S. 143(2) WAS ISSUED TO THE ASSESSEE. THE ASSESSING OFFICER V IDE ORDER DATED 31-12-2009 ASSESSED THE TOTAL INCOME OF THE ASSE SSEE AT RS.(-)11,26,200/-. THE ASSESSEE WAS GRANTED REFUND OF RS.1 3,69,500/- ON ACCOUNT OF SELF ASSESSMENT TAX PAID U/S. 140A AND VI DE SEPARATE ORDER OF EVEN DATED RS.94,228/- U/S. 115 WJ OF THE ACT. HOWEVER, NO INTEREST U/S. 244A OF THE ACT WAS GRANTED. THE ASSESSE E FILED RECTIFICATION PETITION U/S. 154 FOR GRANT OF INTEREST U/S. 24 4A OF THE ACT. HOWEVER, THE RECTIFICATION APPLICATION U/S. 154 WAS REJECTE D BY THE ASSESSING OFFICER VIDE ORDER DATED 02-03-2011. AGGRIEVED BY THE ORDER DATED 02-03-2011 PASSED U/S. 1 54 OF THE ACT, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISS IONER OF INCOME TAX (APPEALS). THE COMMISSIONER OF INCOME TAX (APP EALS) VIDE IMPUGNED ORDER DISMISSED THE APPEAL OF THE ASSESSEE. NOW , THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) BEFORE THE TRIBUNAL. 3. SHRI M.K. KULKARNI APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS ENTITLED TO INTEREST ON THE REFUND RECEIVED FROM THE 3 ITA NO. 981/PN/2014, A.Y. 2007-08 DEPARTMENT U/S. 244A. THE CASE OF THE ASSESSEE IS SQUA RELY COVERED BY THE DECISION OF CO-ORDINATE BENCH OF THE TRIBUNAL IN THE C ASE OF ABHISHEKH COTSPIN MILLS LTD. VS. ASSISTANT COMMISSIONER OF INC OME TAX REPORTED AS 61 TAXMANN.COM 424 (PUNE-TRIB.). IN THE SAID CASE THE TRIBUNAL HAS HELD THAT WHERE THE ASSESSEE HAS PAID SELF A SSESSMENT TAX, THE ASSESSEE IS ENTITLED TO INTEREST U/S. 244A FROM T HE DATE OF PAYMENT OF SELF ASSESSMENT TAX TO THE DATE OF REFUND. 4. SHRI HITENDRA NINAVE REPRESENTING THE DEPARTMENT VEH EMENTLY SUPPORTED THE FINDINGS OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND PRAYED FOR DISMISSING THE APPEAL OF THE ASSESSEE. 5. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESEN TATIVES OF RIVAL SIDES AND HAVE PERUSED THE ORDERS OF THE AUTHORITIE S BELOW. IT IS AN UNDISPUTED FACT THAT THE ASSESSEE HAS PAID SELF ASSES SMENT TAX. THE ASSESSEE HAS BEEN GRANTED REFUND OF RS.13,69,500/- ON S UCH PAYMENT OF TAX. THE ASSESSEE HAS CLAIMED INTEREST U/S. 244A ON T HE SAID AMOUNT OF REFUND. THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CAS E OF ABHISHEKH COTSPIN MILLS LTD. VS. ASSISTANT COMMISSIONER OF INC OME TAX (SUPRA) HAS DEALT WITH THE ISSUE RELATING TO PAYMENT OF INTEREST ON REFUND OF SELF ASSESSMENT TAX. THE TRIBUNAL HELD AS UNDER: 9. WE HAVE CONSIDERED THE ARGUMENTS OF LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. SO FAR AS THE NON-GRA NTING OF INTEREST UNDER SECTION 244A OF THE I.T. ACT ON SELF ASSESSMENT TAX PAID IS CONCERNED, WE FIND THE HONBLE BOMBAY HIGH COURT IN THE CASE OF S TOCKHOLDING CORPORATION OF INDIA VS. CIT & ORS. IN W.P NO.823 O F 2000, ORDER DATED 17.11.2014 FOLLOWING THE DECISION OF HONBLE KARNAT AKA HIGH COURT IN THE CASE OF CIT VS. VIJAYA BANK REPORTED IN 338 ITR 489 (KAR) AND THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. SUTLAJ INDUSTRIES REPORTED IN 325 ITR 331 (DEL) HAS HELD T HAT THE ASSESSEE IS ENTITLED TO INTEREST UNDER SECTION 244A OF THE I.T. ACT FROM THE DATE OF 4 ITA NO. 981/PN/2014, A.Y. 2007-08 PAYMENT OF TAX ON SELF ASSESSMENT TO THE DATE OF RE FUND OF THE AMOUNT. RESPECTFULLY FOLLOWING THE DECISION OF THE JURISDIC TIONAL HIGH COURT, WE HOLD THAT THE ASSESSEE IS ENTITLED TO INTEREST UNDE R SECTION 244A OF THE I.T. ACT ON THAT PORTION OF SELF ASSESSMENT TAX PAI D FROM THE DATE OF PAYMENT OF SUCH TAX TILL THE DATE OF REFUND. IN VIEW OF THE ABOVE, WE HOLD THAT THE ASSESSEE IS ENTITLE D TO INTEREST ON THE PAYMENT OF SELF ASSESSMENT TAX FROM THE DATE OF PAYMENT TO THE DATE OF REFUND U/S. 244A OF THE ACT. 6. IN THE RESULT, THE IMPUGNED ORDER IS SET ASIDE AND T HE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON FRIDAY, THE 08 TH DAY OF JANUARY, 2016. SD/- SD/- ( . . / R.K. PANDA) ( ! ' / VIKAS AWASTHY) #' / ACCOUNTANT MEMBER $ % #' / JUDICIAL MEMBER / PUNE; &# / DATED : 08 TH JANUARY, 2016 RK *+,%-.#/#)- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ' () / THE CIT(A), AURANGABAD 4. ' / THE CIT, CENTRAL, NAGPUR 5. !*+ %%,- , ,- , . ./0 , / DR, ITAT, B BENCH, PUNE. 6. + 1 23 / GUARD FILE. // ! % // TRUE COPY// #4 / BY ORDER, %5 ,0 / PRIVATE SECRETARY, ,- , / ITAT, PUNE