ITO 5(2)(3), V. PURSHOTTAMLAL MAHAVIR PRASAD RUGHTA,

MA 711/MUM/2012

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0335 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-05-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2003-2004
• Appeal Filed On: 26-11-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DIPAK KUMAR SINHA
• Keywords: Retrospective amendment
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH, C MUMBAI BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER AN D SHRI VIVEK VARMA, JUDICIAL MEMBER MA NO: 711/MUM/2012 ARISING OUT OF : 238/MUM/2010 ASSESSMENT YEAR : 2003-04 INCOME TAX OFFICER WARD 5(2)(3) AAYAKAR BHAVAN MUMBAI-400 020. SHRI PURUSHOTTAMLAL MAHAVIRPRASAD RUNGTA 66, ALI CHAMBERS, TAMRIND LANE MUMBAI-400 023. PAN NO: AFDPR 0257 G (APPLICANT) VS. (RESPONDENT) APPLICANT BY : SHRI DIPAK KUMAR SINHA RESPONDENT BY : NONE DATE OF HEARING : 17.5.2013 DATE OF PRONOUNCEMENT : 17.5.2013 ORDER PER RAJENDRA SINGH (AM). THIS MISCELLANEOUS APPLICATION HAS BEEN FILED BY TH E REVENUE REQUESTING FOR RECTIFICATION OF THE ORDER DATED 11. 4.2012 OF THE TRIBUNAL IN ITA NO.238/M/12 IN RELATION TO THE PORTION OF THE ORDER REGARDING LEVY OF INTEREST UNDER SECTION 234D OF THE ACT. 2. AT THE TIME OF HEARING OF THE MISCELLANEOUS APPL ICATION OF THE REVENUE NO ONE APPEARED ON BEHALF OF THE ASSESSEE THOUGH NO TICE OF HEARING HAD BEEN ISSUED WELL IN ADVANCE. WE, THEREFORE, PROCEED TO D ECIDE THE MISCELLANEOUS APPLICATION AFTER HEARING THE LD. DR WHO POINTED OU T THAT IN VIEW OF RETROSPECTIVE AMENDMENT MADE BY THE FINANCE ACT, 20 12 THE INTEREST UNDER MA NO. 711/M/12 ARISING OU T OF ITA NO.238/M/10 A.Y: 03-04 2 SECTION 234D WAS LEVIABLE EVEN IN RELATION TO ASSES SMENT YEAR PRIOR TO 1.6.2003 IF THE PROCEEDINGS WERE COMPLETED AFTER TH AT DATE. 3. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE M ATTER CAREFULLY. THE TRIBUNAL IN THE ORDER DATED 11.4.2012 FOLLOWING THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF EKTA PROMOTERS (113 ITD 719) HELD THAT INTEREST UNDER SECTION 234D WAS LEVIABLE ONLY FROM ASSESSMENT YEAR 2004-05. HOWEVER, LAW WAS AMENDED RETROSPECTIVELY BY THE FIN ANCE ACT, 2012 AS PER WHICH SECTION 234D WOULD ALSO APPLY TO EARLIER ASSE SSMENT YEARS IF THE PROCEEDINGS WERE COMPLETED AFTER 1.6.2003. IN THE P RESENT CASE ASSESSMENT YEAR INVOLVED IS 2003-04, PROCEEDINGS FOR WHICH HAD BEEN COMPLETED AFTER 1.6.2003. THEREFORE, THERE IS AN APPARENT MISTAKE I N THE ORDER OF THE TRIBUNAL IN DELETING THE INTEREST. WE, THEREFORE, CORRECT TH E ORDER BY HOLDING THAT IN VIEW OF THE RETROSPECTIVE AMENDMENT BY THE FINANCE ACT, 2012 THE INTEREST UNDER SECTION 234D HAD BEEN RIGHTLY LEVIED BY THE A SSESSING OFFICER AND ACCORDINGLY CONFIRM THE ORDER OF CIT(A) ON THIS POI NT. IN THE RESULT THE APPEAL OF THE ASSESSEE WILL STAND DISMISSED AS THE OTHER G ROUNDS HAVE ALREADY BEEN DISMISSED BY THE TRIBUNAL. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION OF THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17.5.2013. SD/- SD/- ( VIVEK VARMA) ( RAJENDRA SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 17.5. 2013. JV. MA NO. 711/M/12 ARISING OU T OF ITA NO.238/M/10 A.Y: 03-04 3 COPY TO: THE APPLICANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.