M/s Maharashtra Apex Corporation Limited , Manipal V. Deputy Commissioner of Income Tax Circle-1 , , Udupi

MA 151/BANG/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5665 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-11-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 12-10-2023
• Assessment Year: 1999-2000
• Appeal Filed On: 26-03-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL KUMAR H.
• Keywords: Depreciation; TDS
• Section: 143(3); 244A

Judgement Text

MP Nos.145, 151 & 152/Bang/2023 M/s. Maharashtra Apex Corporation Ltd., Manipal IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER M.P. Nos.145, 151 & 152/Bang/2023 (Arising out of ITA Nos.242, 244 & 246/Bang/2018 respectively) Assessment Years: 1998-99, 1999-2000 & 2000-01 respectively M/s. Maharashtra Apex Corporation Ltd. Syndicate House Manipal 576 104 PAN NO : AACCM2741B Vs. Deputy Commissioner of Income- tax Circle-1 Udupi APPELLANT RESPONDENT Appellant by : Shri Anil Kumar H., A.R. Respondent by : Shri Nischal B., D.R. Date of Hearing : 13.10.2023 Date of Pronouncement : 03.11.2023 O R D E R PER BEENA PILLAI, JUDICIAL MEMBER: These 3 miscellaneous applications filed by the assessee seeking rectification order of the Tribunal in ITA Nos.242/Bang/2018, ITA No.244/Bang/2018 & ITA No.246/Bang/2018 and others dated 28.9.2022. 2. First, we will take up MA No.145/Bang/2023 (ITA No.242/Bang/2018). In this case, the Hon’ble High Court in ITA Nos.2 to 7 of 2022 vide judgement dated 14.3.2022 has remitted the issue to the file of ld. AO to consider the following issues by this Tribunal: “3 (i) The Appellate Officer has erred in holding the appellant had only financed Khatima Fibres Ltd. of Rs.51,01,950/- when ownership of the assets given on lese vests with the appellant. (ii) The Appellate Officer has erred in holding the appellant has only financed “Mohan Meakin Ltd.” and it had not become the owner of BOD Analyser costing Rs.19.98 lakhs. MP Nos.145, 151 & 152/Bang/2023 M/s. Maharashtra Apex Corporation Ltd., Manipal Page 2 of 4 (iii) The Appellate officer has erred in concluding the Apex Court’s decision in the case of ICDS Ltd. vs. CIT (Mysore) applicable only to motor vehicles and not to other assets.” 2.1 On this issue the Tribunal has remitted the above issue to the file of ld. AO with following observations: “8. We have considered the entire history of litigation on this issue contested by assessee in two different rounds of appeal before this Tribunal that travel till Hon’ble High Court. It is a fact that the assessing officer did not have the benefit of the decision of Hon’ble Supreme Court to verify the lease agreements in respect of the assets on which the depreciation was disallowed. The lease agreements has been placed on record by the assessee however verification of the relevant facts in respect of the leased assets are to be carried on by the assessing officer. In the interest of justice, we direct the ld. AO to pass the order giving effect to this order by verifying the lease agreements based on the principles laid down by Hon’ble Supreme Court in case of ICDS (supra). Needless to say that proper opportunity of being heard must be granted to assessee.” 2.2 Now the contention of the ld. A.R. is that the assessee has filed the written submissions in respect of MODVAT Credit and the Tribunal discussed issue by its order as follows: “10. We note that for AY 1998-99, the ld. A.R. filed written submissions regarding MODVAT credit that does not form part of Grounds of appeal before us. Even there is no Addl. Ground on this issue. Hence we refrain from adjudicating the same.” 2.3 However, no finding has been given on this issue. According to the ld. A.R., assessee has filed this issue in original grounds before this Tribunal and also issues raised before Hon’ble High Court, which was remitted back to the Tribunal. However, the Tribunal failed to adjudicate this issue. Accordingly, he prayed that this issue be adjudicated. 3. The ld. D.R. submitted that the issue raised by the assessee with regard to granting of depreciation on leased assets has been remitted by the Hon’ble High Court to the file of Tribunal and the MP Nos.145, 151 & 152/Bang/2023 M/s. Maharashtra Apex Corporation Ltd., Manipal Page 3 of 4 same has been rightly adjudicated by the Tribunal in its order and there is no mistake apparent on record. 4. We have heard the rival submissions and perused the materials available on record. As rightly pointed out by the ld. D.R., the issue remitted by the Hon’ble High Court was with regard to grant of depreciation on leased assets in this appeal and the same has been duly adjudicated by the Tribunal. Now the ld. A.R. wanted to extend the issues to be adjudicated by the Tribunal, which is not possible to do so as the Tribunal is bound by the direction of the Hon’ble High Court in its judgement cited (supra). Accordingly, we do not find any merit in the miscellaneous petition in MP No.145/Bang/2023. Accordingly, this MP filed by the assessee is dismissed. 5. MP Nos.151/Bang/2023 (ITA No.244/Bang/2018) and MP No.152/Bang/2023 (ITA No.245/Bang/2018). In these MPs the issues are with regard to not adjudicating the issues relating to grant of interest u/s 244A of the Act on the refund due as per the order of the ITAT in the order passed u/s 143(3) r.w.s. 254 of the Act for the assessment years under consideration. 6. We have heard the rival submissions and perused the materials available on record. We find merit in this ground raised by assessee in the above miscellaneous petitions filed by the assessee. The assessee has raised this ground on earlier occasion in its appeal and also before Hon’ble High Court left open and this issue be urged before this Tribunal to pass appropriate orders in accordance with law. The Tribunal decided this issue in para 11 only with regard to granting of TDS credit based on the TDS certificate for the corresponding income accounted for and offered to taxation for the relevant assessment year. However, the Tribunal failed to give direction to the ld. AO to grant interest on refund u/s 244A of the Act. In our opinion, there is an error in this respect and accordingly, we direct the ld. AO to grant interest u/s 244A of the Act in these MP Nos.145, 151 & 152/Bang/2023 M/s. Maharashtra Apex Corporation Ltd., Manipal Page 4 of 4 assessment years i.e. 1999-2000 and 2000-01 subject to the provisions of section 244A(2) of the Act. 7. In the result, MA No.145/Bang/2023 is dismissed and MA Nos.151 & 152/Bang/2023 are partly allowed. Order pronounced in the open court on 3 rd Nov, 2023 Sd/- (Chandra Poojari) Accountant Member Sd/- (Beena Pillai) Judicial Member Bangalore, Dated 3 rd Nov, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.