ASST CIT 10(1), V. RELIANCE INFRASTRUCTURE LTD,

MA 152/MUM/2012

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0084 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 01-02-2013
• Assessment Year: 1999-2000
• Appeal Filed On: 07-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 244A; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , ' #$ % % % % . '(), * #$ #+ BEFORE SHRI DINESH KUMAR AGARWAL, JM AND SHRI B. RAMAKOTAIAH, AM , , #./ M.A. NO. 151/MUM/2012 ARISING OUT OF ITA NO.4718/MUM/2010 ( ' 0 10 ' 0 10 ' 0 10 ' 0 10 / / / / ASSESSMENT YEAR : 1998-99) , , #./ M.A. NO. 152/MUM/2012 ARISING OUT OF ITA NO.4719/MUM/2010 ( ' 0 10 ' 0 10 ' 0 10 ' 0 10 / / / / ASSESSMENT YEAR : 1999-00) THE ASSTT.COMMISSIONER OF INCOME-TAX- 10(1), ROOM NO. 455, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. MARG, MUMBAI 400 020. / VS. M/S RELIANCE INFRASTRUCTURE LTD., (ERSTWHILE RELIANCE ENERGY CENTRE LTD.), SANTACRUZ (EAST), MUMBAI 400 055. $2 * #./ PAN : AACCR7446Q ( 23 / // / APPLICANT ) .. ( 4523 / RESPONDENT ) 23 6 7 # / APPLICANT BY : SHRI MANOJ KUMAR 4523 6 7 # / RESPONDENT BY : SHRI JITENDRA SANGHAVI # 6 8* / // / DATE OF HEARING : 01-02-2013 9'1 6 8* / DATE OF PRONOUNCEMENT : 08-02-2013 / O R D E R PER DINESH KUMAR AGARWAL, JM. : THESE TWO MISC. APPLICATIONS FILED BY THE REVENUE A RE DIRECTED AGAINST THE COMMON ORDER DTD. 30-8-2011 PASSED BY THE TRIBU NAL IN ITA NO. 4718 & M.A. NOS. 151 & 152/MUM/2012 2 4719/MUM/2010 FOR THE ASSESSMENT YEARS 1998-99 AND 1999-2000. SINCE FACTS ARE IDENTICAL AND ISSUE INVOLVED IS COMMON, B OTH THESE MISC. APPLICATIONS ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE O F CONVENIENCE. 2. IN THE MISC. APPLICATIONS, WHICH ARE COMMON, THE APPLICANT SUBMITTED AS UNDER:- THE HON. TRIBUNAL WAS PLEASED TO PASS THE ORDER REF ERRED ABOVE DISMISSING THE APPEAL FILED BY THE REVENUE, HOLDING THAT THE ISSUE OF GRANTING OF INTEREST U/S 244A ON MAT CREDIT IS COVE RED IN FAVOUR OF THE ASSESSEE IN LIEU (SIC) OF THE DECISION OF HONBLE A PEX COURT IN THE CASE OF CIT V/S. TULSYAN NEC LTD. (2011) 330 ITR 226 (SC). HONBLE MEMBERS MAY BE PLEASED TO FIND THAT THE DEC ISION OF HONBLE APEX COURT IN THE CASE OF CIT V/S. TULSYAN NEC LTD. (SUPRA) PERTAINS TO CHARGEABILITY OF INTEREST U/S 234A, 234B & 234C OF THE I. T ACT, WHEREAS THE ISSUE UNDER CONSIDERATION IS PAYMENT OF INTERES T U/S 244A OF THE I.T ACT. FURTHER, IN VIEW OF THE SPECIFIC PROVISO TO SE CTION 115JAA(2) NO INTEREST IS PAYABLE ON THE TAX CREDIT ALLOWED U/S.1 15JAA(1). 3. IT WAS, THEREFORE, PRAYED THAT THE ORDER PASSED BY THE TRIBUNAL MAY BE RECALLED OR MODIFIED. 4. AT THE TIME OF HEARING THE LD. D.R. SUBMITS THAT FOR THE REASONS AS MENTIONED IN THE MISC. APPLICATIONS, THE ORDER PASS ED BY THE TRIBUNAL BE MODIFIED. 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE SUBMITS THAT THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL. IN PARA 4 OF THE TRIBUNAL ORDER THE ASSESSEE HAS ALSO RELIED ON THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT IN CIT VS. APAR INDUSTRIES LTD. (2010) 323 IT R 411 (BOM) WHEREIN THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD THAT AFT ER GIVING DUE ADJUSTMENT FOR MAT CREDIT, TDS, ADVANCE TAX AND SELF-ASSESSMENT, I NTEREST U/S 244A IS M.A. NOS. 151 & 152/MUM/2012 3 ALLOWABLE. HE, THEREFORE, SUBMITS THAT IN VIEW OF THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT THE ASSESSEE IS ENTITLED TO INTEREST U/S 244A AND ACCORDINGLY THE MISC. APPLICATIONS FILED BY THE REV ENUE BE REJECTED. 6. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND T HAT THE CLAIM OF THE REVENUE IS THAT THE DECISION OF THE HONBLE SUPREME COURT RELIED ON BY THE TRIBUNAL IN CIT VS. TULSYAN NEC LTD. (2011) 330 ITR 226 (SC) PERTAINS TO THE CHARGEABILITY OF INTEREST U/S 234A, 234B AND 234C O F THE ACT WHEREAS THE ISSUE UNDER CONSIDERATION IS PAYMENT OF INTEREST U/ S 244A OF THE ACT. FURTHER IN VIEW OF THE SPECIFIC PROVISO OF SECTION 115JAA(2 ) NO INTEREST IS PAYABLE ON THE TAX CREDIT ALLOWED U/S.115JAA(1). 7. HOWEVER, WE FIND THAT THIS ISSUE IS SQUARELY COV ERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN APAR INDUS TRIES LTD. (SUPRA) WHEREIN THE QUESTION NO. (B) READS AS UNDER (PAGE 414):- (B) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE TRIBUNAL ERRED IN LAW IN HOLDING THAT INTEREST UNDER SECTION 244A OF THE INCOME-TAX ACT, 1961 WAS ALLOWABLE ON THE REFUNDABLE TAXES ARRIVED AT AFTER GIVING CREDIT OF BROUGHT FORWARD MAT FROM THE GROSS DEMAND ?. THEIR LORDSHIPS HAVE HELD AS UNDER (PAGE 429):- IN SO FAR AS THE SECOND QUESTION IS CONCERNED, COU NSEL APPEARING ON BEHALF OF THE REVENUE HAS CONCEDED BEFORE THE COURT THAT IT W OULD BE CONSEQUENTIAL TO THE DETERMINATION OF THE FIRST QUESTION. AS ALREADY NOTED EARLIER IN THIS JUDGMENT, AS AGAINST THE TAX PAYABLE OF RS. 2.46 CR ORES, THE TAX PAID BY THE ASSESSEE AMOUNTED TO RS. 4.24 CRORES AFTER GIVING D UE ADJUSTMENT FOR MAT CREDIT, TDS, ADVANCE TAX AND SELF-ASSESSMENT TAX. T HE ASSESSEE WAS, THEREFORE, ENTITLED TO A REFUND OF EXCESS TAX PAID FOR THE ASS ESSMENT YEAR 2000-01 OVER AND ABOVE THE TAX WHICH WAS COMPUTED AS BEING DUE A ND PAYABLE. INTEREST UNDER SECTION 244A WAS ALLOWABLE. AS WE HAVE ALREAD Y NOTED, IT HAS BEEN M.A. NOS. 151 & 152/MUM/2012 4 STATED ON BEHALF OF THE REVENUE DURING THE COURSE O F THE HEARING THAT THE ANSWER TO THE SECOND QUESTION WOULD BE CONSEQUENTIA L TO THE DETERMINATION OF THE FIRST QUESTION. CONSEQUENTLY, THE SECOND QUESTI ON SHALL STAND ANSWERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 8. IN THE ABSENCE OF ANY DISTINGUISHING FEATURE BRO UGHT ON RECORD BY THE REVENUE, WE RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT, WHICH IS BINDING ON US, HOLD THAT THE T RIBUNAL HAS RIGHTLY HELD AS UNDER:- 5. .RESPECTFULLY FOLLOWING THE AUTHORITATIVE P RONOUNCEMENTS OF THE HONBLE APEX COURT AND THE HIGH COURTS, WE ARE INCL INED TO UPHOLD THE FINDINGS OF THE LD. CIT(A) IN DIRECTING THE AO TO ALLOW THE INTEREST UNDER SECT ION 244A ON THE ENTIRE REFUND AMOUNT SO DETERMINED AFTER A L LOWING MAT CREDIT TO THE APPELLANT COMPANY SUBJECT TO VERIFICATION. ACCORDIN GLY, THE GROUNDS TAKEN BY THE REVENUE ARE REJECTED. IN THIS VIEW OF THE MATTER WE ARE OF THE VIEW THAT THERE IS NO MISTAKE IN THE ORDER OF THE TRIBUNAL, THEREFORE, THE MISC. APPLICA TIONS FILED BY THE REVENUE FOR THE ASSESSMENT YEARS 1998-99 & 1999-2000 ARE REJECT ED. 9. IN THE RESULT, REVENUES MISC. APPLICATIONS STAN D DISMISSED. : 8; <$ 6 , , *:< 6 <8 => ORDER PRONOUNCED IN THE OPEN COURT ON 8-02-2013 . 6 9'1 * ; 8-02-2013 ' 6 E SD/- SD/- (B. RAMAKOTAIAH ) (DINE SH KUMAR AGARWAL) * #$ / ACCOUNTANT MEMBER ' #$ / JUDICIAL MEMBER MUMBAI; DATED 8-02-2013 .'.#./ R.K. , SR. PS M.A. NOS. 151 & 152/MUM/2012 5 6 4 6 4 6 4 6 4'8F, ,18 '8F, ,18 '8F, ,18 '8F, ,18/ COPY OF THE ORDER FORWARDED TO : 1. 23 / THE APPELLANT 2. 4523 / THE RESPONDENT . 3. G () / THE CIT(A)-CONCERNED, MUMBAI 4. G / CIT CONCERNED, MUMBAI 5. , JE 4'8' , , / DR, ITAT, MUMBAI B BENCH 6. E0 K / GUARD FILE. #5,8 4'8 // TRUE COPY // # # # # / BY ORDER, L LL L/ // /#= < #= < #= < #= < (DY./ASSTT. 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