GODREJ INDUSTRIES LTD, V. DCIT 1(1),

MA 73/MUM/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 1893 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2014
• Appeal Filed By: Assessee
• Bench Allotted: G
• Assessment Year: 1997-1998
• Appeal Filed On: 13-02-2014
• Court: TRIBUNAL
• Department Lawyers: NEERJA PRADHAN
• Keywords: Opportunity of being heard
• Section: 244A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER M.A. NO. 72/MUM/2014 (ARISING OUT OF ITA NO. 515/MUM/2011) ASSESSMENT YEAR: 1996-97 & M.A. NO. 73/MUM/2014 (ARISING OUT OF ITA NO. 516/MUM/2011) ASSESSMENT YEAR: 1997-98 M/S. GODJREJ INDUSTRIES LTD. PHIROJSHANAGAR, ESTERN EXPRESS HIGHWAY, VIKHROLI MUMBAI- 400 079 PAN :AAACG 2953 R VS. DCIT (TDS) -1(1) MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.M. GOLVALA & AJIT SHAH RESPONDENT BY : MS. NEERJA PRADHAN DATE OF HEARING : 25.04.2014 DATE OF PRONOUNCEMENT : 25.04.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THESE MISCELLANEOUS APPLICATIONS ARE FILED BY THE ASSESSEE ON 11.02.2014 U/S 254 CLAUSE 2 OF THE INCOME TAX ACT, SEEKING RECTIFI CATION WITH REFERENCE TO THE GROUNDS OF APPEAL IN ITA NOS. 515 & 516/MUM/2011 WH ICH HAVE BEEN ADJUDICATED BY US VIDE ORDER DATED 29.11.2013 FOR THE ASSESSMEN T YEARS 1996-97 & 1997-98. 2. DURING THE PROCEEDING BEFORE US, THE LD.AR FOR T HE ASSESSEE HAS BROUGHT OUR ATTENTION TO THE MISCELLANEOUS APPLICATIONS AND STA TED THAT THERE IS A NEED FOR MAKING RECTIFICATION IN THE SAID ORDER OF THE TRIBU NAL DATED 29.11.2013. THE IMPUGNED RECTIFICATIONS ARE REQUIRED TO BE DONE QUA THE ADJUDICATION OF THE APPEAL ON THE ISSUE OF DETERMINATION OF THE AMOUNT OF INTE REST U/S 244 A OF THE INCOME TAX ACT. M.A. NO. 72/MUM/2014 (ARISING OUT OF ITA NO. 515/MUM/2011) & M.A. NO. 73/MUM/2014 (ARISING OUT OF ITA NO. 516/MUM/2011) M/S. GODJREJ INDUSTRIES LTD. ASSESSMENT YEAR: 1996-97 & 97-98 2 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS THE CONTENTION OF THE LD.AR THAT AT THE TIME OF HEARING OF THE APPEALS, IT HAS BEEN POINTED OUT THAT THE DECISION OF THE SUPREME COURT IN GUJARAT FLOURO CHEMICALS IS CONCERNED WITH THE INTERPRETATION OF SECTION 244A A ND THE UNDERSTANDING OF THE CBDT CIRCULAR BEARING NO. 549 PERTAINS TO THE INTRO DUCTION OF SECTION 244A. IT HAS FURTHER BEEN POINTED OUT THAT AT THE TIME HEARING T HE APPEALS, THE LD.AR HAS RELIED ON THE DECISIONS OF THE SUPREME COURT IN THE CASE O F CIT VS. HEG LIMITED (324 ITR 331) AND THE DELHI HIGH COURT IN THE CASE OF INDIA TRADE PROMOTION ORGANIZATION . HOWEVER, WHILE ADJUDICATING THE APPEALS, THE TRIBUN AL HAS GIVEN A FINDING IN PARA 5 AT PAGE 4 OF THE SAID ORDER, WHEREIN IT HAS BEEN HE LD THAT:- CONSIDERING THE TOTALITY OF FACTS, AFTER NOTING THA T THE EARLIER DECISION OF THE TRIBUNAL IS BASED ON THE DECISION OF THE APEX COURT IN THE CASE OF SANDVIK ASIA LIMITED, WE ARE OF THE CONSIDERED VIEW THAT IT IS JUST AND PROPER TO REMIT BACK THE ENTIRE MATTER TO THE FILE OF THE AO TO DEC IDE THE MATTER AFRESH IN THE LIGHT OF THE DECISION OF THE APEX COURT IN THE CASE OF GUJARAT FLOURO CHEMICALS AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM. ACCORDING TO THE LD.AR THERE IS A MISTAKE APPARENT ON RECORD FOR THE REASON THAT THE AO IS NOW CONSTRAINED TO DECIDE THE MATTER AFRESH O NLY IN THE LIGHT OF THE DECISION OF THE SUPREME COURT IN THE CASE OF GUJARAT FLOURO CHE MICALS. IN VIEW OF THAT MATTER, THE LD.AR HAS PRAYED THAT THERE SHOULD ALSO BE A RE FERENCE IN THE ORDER TO THE DECISION OF THE SUPREME COURT IN THE CASE OF CIT VS. HEG LIMITED , THE DECISION OF THE DELHI HIGH COURT IN THE CASE OF CIT VS. INDIA TRADE PROMOTION ORGANIZATION AND THE CIRCULAR ISSUED BY THE CBDT. IN THIS CONNECTION , IT IS PERTINENT TO MENTION THAT THE TRIBUNAL VIDE THE AFOREMENTIONED ORDER DATED 29 .11.2013 REMITTED BACK THE ENTIRE MATTER TO THE FILE OF THE AO TO DECIDE THE M ATTER AFRESH IN THE LIGHT OF THE DECISION OF THE APEX COURT IN THE CASE OF GUJARAT F LOURO CHEMICALS AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO SUBST ANTIATE ITS CLAIM. IT IS CLARIFIED THAT SINCE THE AO IS DIRECTED TO DECIDE THE MATTER AFRESH AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM, THE ASSESSEE IS AT LIBERTY TO RELY ON ANY DECISION IN THE PROPOSED PROCEEDINGS BE FORE THE AO AND ALSO THE SAID DIRECTION WILL NOT IN ANY WAY CONSTRAIN THE AO TO C ONSIDER ANY DECISION PROPOSED TO BE RELIED ON BY THE ASSESSEE TO SUBSTANTIATE ITS CL AIM IN THE PROCEEDINGS BEFORE THE M.A. NO. 72/MUM/2014 (ARISING OUT OF ITA NO. 515/MUM/2011) & M.A. NO. 73/MUM/2014 (ARISING OUT OF ITA NO. 516/MUM/2011) M/S. GODJREJ INDUSTRIES LTD. ASSESSMENT YEAR: 1996-97 & 97-98 3 AO. IN VIEW OF THAT MATTER, THE MISCELLANEOUS APPLI CATIONS FILED BY THE ASSESSEE ARE DISPOSED OFF WITH THE AFOREMENTIONED OBSERVATION. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF APRIL, 2014. SD/- SD/- (P.M. JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 25.04.2014 *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR G BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.