SHRI SANJEEV KUMAR,CHANDIGARH V. ACIT-CC-1, CHANDIGARH

ITA 590/CHANDI/2023

AI Insights

The Income Tax Appellate Tribunal in Chandigarh heard multiple appeals concerning the levy of interest under sections 234A, 234B, and 234C of the Income Tax Act, 1961, for various assessment years from 2012-13 to 2018-19. The appeals were filed by different assessees, including Shri Sanjeev Aggarwal, Shri Balram Krishan, Maxport India Pvt. Ltd., and Scott Edil Pharmacia Ltd., against the Assistant Commissioner of Income Tax, Central Circle-I, Chandigarh. The main legal issue was whether the non-levy of interest in the original assessment order constituted a mistake apparent on record, justifying a rectification under section 154. The tribunal referenced the Supreme Court's decision in Karanvir Singh Gossal Vs. CIT and another, which affirmed the mandatory nature of such interest levies.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107828 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-08-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 26-09-2023
• Other Referred Cases: Karanvir Singh Gossal Vs. CIT and another (2012) 349 ITR 692 (SC), Anjum M.H. Ghaswala & Ors, (2001) 252 ITR 1
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K.MEHBOOB ALI KHAN
• Assessee Lawyers: PARIKSHIT AGGARWAL; C.A; WAY OF SEPARATE
• Keywords: Rectification of order
• Section: 154; 234B

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “बी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARD THROUGH: PHYSICAL MODE ŵी संजय गगŊ, Ɋाियक सद˟ एवं ŵी क ृणवȶ सहाय, लेखा सद˟ BEFORE: SHRI. SANJAY GARG, JM & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA No. 590/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Shri Sanjeev Aggarwal, C/o Parikshit Aggarwal, C.A, H.No. 3035, Sector 27D, Chandigarh बनाम The Asst. CIT Central Circle-1 Chandigarh ˕ायी लेखा सं./PAN NO: ABCPK9428K अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent आयकर अपील सं./ ITA Nos. 585 To 589/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2013-14 To 2017-18 Shri Sanjeev Aggarwal, C/o Parikshit Aggarwal, C.A, H.No. 3035, Sector 27D, Chandigarh बनाम The Asst. CIT Central Circle-1 Chandigarh ˕ायी लेखा सं./PAN NO: ABCPK9428K अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent आयकर अपील सं./ ITA Nos. 733 To 739/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 To 2018-19 Shri Balram Krishan Plot No. 47-48, Phase-2 Industrial Area, Chandigarh बनाम The Asst. CIT Central Circle-I, Chandigarh ˕ायी लेखा सं./PAN NO: ABCPK9427G अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent आयकर अपील सं./ ITA Nos. 576 To 578/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2014-15 To 2016-17 Maxport India Pvt. Ltd. C/o Parikshit Aggarwal, C.A H.No. 3035, Sector 27D, Chandigarh बनाम The Asst. CIT Central Circle-I, Chandigarh ˕ायी लेखा सं./PAN NO: AAICM9120E अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent आयकर अपील सं./ ITA Nos. 580 & 581/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 & 2018-19 Maxport India Pvt. Ltd. C/o Parikshit Aggarwal, C.A H.No. 3035, Sector 27D, Chandigarh बनाम The Asst. CIT Central Circle-I, Chandigarh ˕ायी लेखा सं./PAN NO: AAICM9120E अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent 2 आयकर अपील सं./ ITA Nos. 835 To 841/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 To 2018-19 Scott Edil Pharmacia Ltd. Plot No. 54-55, Phase-II Industrial Area, Chandigarh बनाम The Asst. CIT Central Circle-I, Chandigarh ˕ायी लेखा सं./PAN NO: AAHCS1643K अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent आयकर अपील सं./ ITA Nos. 848 To 854/Chd/ 2023 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 To 2018-19 Scott Edil Advance Research Laboratories And Education Limited Plot No. 28/6, Industrial Area, Phase-2, Chandigarh बनाम The Asst. CIT Central Circle-I, Chandigarh ˕ायी लेखा सं./PAN NO: AANCS1120M अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : Shri Parikshit Aggarwal, C.A Smt. Shruti Khandelwal, Advocate राज᭭व कᳱ ओर से/ Revenue by : Shri. K. Mehboob Ali Khan, CIT DR सुनवाई कᳱ तारीख/Date of Hearing : 21/08/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 06/11/2024 आदेश/Order Per Sanjay Garg, Judicial Member : All the above appeals have been preferred by respective assesses for different Assessment Years. Some of the appeals are barred by limitation of one day only. Considering the shortness of delay, the short delay of one day is hereby condoned. 2. Since the sole and common issue is involved in all the above appeals, hence these have been heard together and are being disposed off with this common order. 3. The common issue raised by the assessee in all the above appeals is relating to the levy of interest under section 234A, 234B and 234C of the Income Tax Act, 1961 by the AO by way of rectification order passed under section 154 of the Act. 4. Ld. Counsel for the Assessee has contended that non levy of interest under section 234A, 234B and 234C in the assessment order does not constitute a mistake apparent on record, therefore the Assessing Officer was not justified in levying interest under section 234A, 234B and 234C of the Act by way of rectification order 3 passed under section 154 of the Act. The Ld. DR, however has stated that the issue is squarely covered against the assessee by the decision of the Hon’ble Supreme Court in the case of Karanvir Singh Gossal Vs. CIT and another (2012) 349 ITR 692 (SC) wherein, the Hon’ble Supreme Court while further relying upon the Five Judges Bench decision of the Hon’ble Supreme Court in the case of Anjum M.H. Ghaswala & Ors, (2001) 252 ITR 1 has held that the levy of interest under section 234A, 234B and 234C is mandatory in nature. 4.1 In view of aforesaid settled position of law, the Ld. AO was justified in invoking the provisions of Section 234A, 234B and 234C by way of rectification order passed under section 154 of the Act. 5. However both the Ld. Representatives of the parties have also been fair enough to admit that levy of interest under section 234A, 234B and 234C is consequential in nature i.e; the same is dependent upon the quantum additions made / sustained in the case of the assessee. The assessee by way of separate appeals for the Assessment Years under consideration have contested the validity of addition made, therefore, it is held if the additions are sustained then the consequential interest will be leviable, however if the additions stand deleted in the quantum appeals, the consequential interest under section 234A, 234B and 234C will also automatically stands deleted. 6. Subject to the above observations, all the above captioned appeals filed by the different assessees are hereby dismissed. Order pronounced in the open Court on 06/11/2024 Sd/- Sd/- क ृणवȶ सहाय संजय गगŊ (KRINWANT SAHAY) (SANJAY GARG) लेखा सद᭭य/ ACCOUNTANT MEMBER ᭠याियक सद᭭य / JUDICIAL MEMBER AG Date: 06/11/2024 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "