SAMOSARAN YARNS P.LTD, MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX 9(3) , MUMBAI

MA 91/MUM/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5892 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARJOO GAR O DIA
• Assessee Lawyers: D B SANGHVI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN , JM M A NO. 91 / MUM/20 17 (ARISING OUT OF ITA NO.5651/MUM/2017) ( ASSESSMENT YEAR : 2013 - 14 ) M/S. SAMOSARAN YARNS PVT. LTD., 41/42, LIBERTY BUILDI NG SIR VITHALDAS THAKERSY MARG MUMBAI 400 020 VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(3)(1) MUMBAI PAN/GIR NO. AAJCS6707Q APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI D.B. SANGHVI REVENUE BY MS. ARJOO GARODIA DATE OF HEARING 10 / 11 /201 7 DATE OF PRONOUNCEME NT 14 / 11 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS M.A. AROSE OUT OF ORDER PASSED BY TRIBUNAL IN ITA NO.5651/MUM/2015 DATED 21/07/2016. 2. IT WAS CONTENDED BY LEARNED AR THAT THE APPEAL WAS AGAINST CHARGING OF INTEREST U/S. 234A OF THE INCOME TAX ACT, 1961 ['THE ACT']. THE ISSUE WAS WHETHER, IN A CASE WHERE A RETURN OF INCOME IS FILED LATE, THAT IS, BEYOND THE DUE DATE OF FILING RETURN OF INCOME, WHILE COMPUTING THE INTEREST LEVIAB LE U/S.234A , THE PERIOD SHOULD BE FROM THE DUE DATE OF FILING OF RETURN OF INCOME TILL THE ACTUAL DATE OF FILING THE RETURN OF INCOME , OR TILL THE DATE OF PAYMENT OF SELF - ASSESSMENT TAX. M.A.NO.91/MUM/2017 M/S. SAMOSARAN YARNS PVT. LTD., 2 3. IT WAS FURTHER CONTENDED THAT ISSUE IS COVERED BY THE DECISION OF THE DELHI HIGH COURT IN THE CASE OF DR. PRANNOY ROY & ANR. VS. COMMISSIONER OF INCOME TAX & ANR (DELHI) REPORTED IN 254 ITR 755 (DEL), WHICH WAS FURTHER CONFIRMED BY HONBLE SUPREME COURT. 4. WE HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL AND FOUND THAT I SSUE OF CHARGING INTEREST U/S.234A WAS DECIDED IN FAVOUR OF THE ASSESSEE AFTER RELYING ON THE DECISION OF GUJARAT HIGH COURT IN THE CASE OF BHARAT BHAI B. SHAH 355 ITR 373, HOWEVER, THE DIRECTION SO GIVEN BY THE BENCH WAS NOT CLEAR. ACCORDINGLY, WE MODIFY THE SAME AND RESPECTFULLY FOLLOWING THE DECISION OF DELHI HIGH COURT WHICH HAS BEEN APPROVED BY THE SUPREME COURT AND REPORTED AT 309 ITR 231 AND THEREAFTER , A CIRCULAR HAS ALSO BEEN ISSUED BY CBDT NO.2/2015 DATED 10/02/2015, WE DIRECT THE AO NOT TO CHARGE INTEREST U/S.234A ON THE AMOUNT OF TAX THAT HAS BEEN PAID BEFORE THE DATE OF ACTUAL FILING OF INCOME TAX RETURN FOR THE RELEVANT ASSESSMENT YEAR. 5. IN THE RESULT, M.A. FILED BY THE ASSESSEE IS ALLOWED IN TERMS INDICATED HEREINABOVE. O RDER PRONOUNCED IN T HE OPEN COURT ON THIS 14 / 11 /2017 S D/ - ( SANDEEP GOSAIN ) S D/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 14 / 11 /201 7 KARUNA SR. PS M.A.NO.91/MUM/2017 M/S. SAMOSARAN YARNS PVT. LTD., 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//