Prakash Industries Ltd., Hissar V. DCIT, CC-30, New Delhi

MA 483/DEL/2022

AI Insights

The case involves Prakash Industries Ltd., the appellant, contesting the orders passed by the Deputy Commissioner of Income Tax, Central Circle-30, New Delhi, the respondent, regarding the charging of interest under sections 234B and 234C for the assessment years 2006-07 and 2008-09. The primary contention was the legality of the rectification orders issued under section 154, which the appellant argued were beyond the permissible time limit. The Income Tax Appellate Tribunal, after reviewing the arguments and the relevant legal provisions, agreed with the appellant, leading to the allowance of the Miscellaneous Applications.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121358 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 03-08-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 29-12-2022
• Laws Referred To: Section 154, Section 254, Section 143(3), Section 234B, Section 234C
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154; 234B; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Sh. C. N. Prasad, Judicial Member Dr. B. R. R. Kumar, Accountant Member MA No. 482/Del/2022 (In ITA No. 1451/Del/2021 : Asstt. Year: 2006-07) MA No. 483/Del/2022 (In ITA No. 1452/Del/2021 : Asstt. Year: 2008-09) MA No. 484/Del/2022 (In ITA No. 1575/Del/2021 : Asstt. Year: 2006-07) MA No. 485/Del/2022 (In ITA No. 1578/Del/2021 : Asstt. Year: 2008-09) Prakash Industries Ltd., 15 Km Stone, Delhi Road, Hissar, Haryana-125044 Vs. DCIT, Central Circle-30, New Delhi-110055 (APPELLANT) (RESPONDENT) PAN No. AABCP6765H Assessee by : Sh. Ajay Wadhwa, Adv. & Ms. Ayushi Gupta, CA Revenue by : Sh. Om Parkash, Sr. DR Date of Hearing: 04.08.2023 Date of Pronouncement: 13.09.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: Heard the arguments of both the parties and perused the material available on record. 2. Para 32 reads as under: “32. To cull the chaff to find out the seed, we have gone through the core arguments of the assessee that the order dated 23.11.2020 passed by the AO u/s 154/254/143(3) and confirmed by the ld. CIT(A) charging interest u/s 234B and u/s 234C is barred by limitation while the revenue was aggrieved with the deletion made by the ld. CIT(A) on account of interest levied on Section 234B and also the grievance at ground no. 5 in ITA No. MA Nos. 482 to 485/Del/2022 Prakash Industries Ltd. 2 1578/Del/2021 wherein the ld. CIT(A) held that the order u/s 154 is beyond jurisdiction and deleted interest u/s 234B.” 3. The same shall be read as under: “32. To cull the chaff to find out the seed, we have gone through the core arguments of the assessee that the order dated 23.11.2020 passed by the AO for the A.Y. 2006-07 and the order dated 05.01.2021 u/s 154/254/143(3) for A.Y. 2008-09 and confirmed by the ld. CIT(A) charging interest u/s 234B and u/s 234C is barred by limitation while the revenue was aggrieved with the deletion made by the ld. CIT(A) on account of interest levied on Section 234B and also the grievance at ground no. 5 in ITA No. 1578/Del/2021 for the A.Y. 2008-09 wherein the ld. CIT(A) held that the order u/s 154 is beyond jurisdiction and deleted interest u/s 234B.” 4. Para 34 reads as under: “34. The audit objection has been accepted and an order u/s 154 has been passed by the revenue. The main grievance of the assessee is that the interest u/s 234C has been charged for the first time on 05.01.2021 by rectifying u/s 154 the appeal effect order dated 06.07.2017.” 5. The same shall be read as under: “34. The audit objection has been accepted and an order u/s 154 has been passed by the revenue for the A.Y. 2008-09. The main grievance of the assessee is that the interest u/s 234C has been charged for the first time on 05.01.2021 by rectifying u/s 154 the appeal effect order dated 06.07.2017.” 6. Page no. 42, in the table Date of order u/s 250 – 06.07.2017 Date of rectification – 09.12.2020 r.w.s. 254/143(3) was dated - 09.12.2020 Shall be read as under: Date of order u/s 250 – 31.03.2017 Date of rectification – 05.01.2021 r.w.s. 250/143(3) was dated - 05.01.2021 MA Nos. 482 to 485/Del/2022 Prakash Industries Ltd. 3 7. Para 37 reads as under: “Thus, we find the order of the rectification u/s 154 passed by the revenue authorities on 09.12.2020 rectifying the order of the earlier decade is barred by limitation and cannot be held to be legally valid.” 8. Shall be read as under: “Thus, we find the date of rectification order passed u/s 154 by the revenue authorities mentioned on 05.01.2021 rectifying the order of the earlier decade is barred by limitation and cannot be held to be legally valid.” Clarification 9. Since, the intimation u/s 143(1)(a) was not valid having being issued after the commencement of the proceedings u/s 143(2) and thereafter the interest u/s 234B and 234C was not charged on income computed under MAT provisions till the last order dated 16.01.2017 and therefore, the charging of interest vide impugned order dated 05.01.2021 is beyond limitation. 10. In the result, the Miscellaneous Applications of the assessee are allowed. Order Pronounced in the Open Court on 13/09/2023. Sd/- Sd/- (C. N. Prasad) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 13/09/2023 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR