THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 4(2)(2), MUMBAI V. STANDARD CHARTERED BANK (SINGAPORE)LIMITED, MUMBAI

MA 92/MUM/2025

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The case involves a dispute between the Deputy Commissioner of Income Tax (DCIT), International Tax Circle 4(2)(2), Mumbai, and Standard Chartered Bank (Singapore) Ltd., concerning the levy of interest under section 234C of the Income Tax Act for the Assessment Year 2021-22. The revenue's application challenged the Tribunal's earlier decision, which had favored the assessee, citing a Supreme Court decision that was allegedly overlooked. The Tribunal, however, reaffirmed its decision by referencing a relevant Bombay High Court judgment, distinguishing the context and application of the law in the cases cited by the revenue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397912 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2021-2022
• Other Referred Cases: Director of International Tax, New Delhi Vs Mitsubishi Corporation, Director of Income Tax (International Taxation) Vs Nge Network Asia LLC
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAGIRATH RAMAWAT
• Assessee Lawyers: DHANESH BAFNA AMOL
• Keywords: TDS
• Section: 154; 234B

Judgement Text

" |आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER प्रकीणण आवेदन सुं./MA No. 92/MUM/2025 (Arising out of ITA No. 2505/Mum/2024) (ननिाणरण वर्ण / Assessment Year :2021-22) DCIT, International Tax Circle 4(2)(2), Mumbai Air India Building, Nariman Point, Mumbai, Maharashtra- 400021 v/s. बनाम Standard Chartered Bank (Singapore) Ltd. Narendra Singhania & Company, E 21, 1st and 2nd Floor, Hauz Khas, New Delhi-110016 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: ABBCS3236R Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Shri Dhanesh Bafna/Shri Amol Mahajan राजस्व की ओर से /Revenue by: Shri Bhagirath Ramawat, Sr. DR स नवाई की िारीख / Date of Hearing 06.06.2025 घोर्णा की िारीख/Date of Pronouncement 06.06.2025 आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA [A.M.]:- This miscellaneous application by the revenue is directed towards the order of the Tribunal in ITA No. 2505/Mum/2025 for Assessment Year [A.Y.] 2021-22. P a g e | 2 ITA No. 92/Mum/2025 A.Y. 2021-22 Standard Chartered Bank (Singapore) Ltd. 2. The grievance of the revenue can be understood from the following extract from the miscellaneous application: “During the previous year relevant to assessment year 2021-22, the assessee received interest income on Commercial papers/non-convertible debentures/Government Securities. On some part of the said interest income the payer did not deduct TDS. The CPC TDS vide order u/s 154 of the Act dated 23.06.2023, levied interest of Rs. 51,75,514/- u/s 234C of the Act. The assessee claims that it has discharged tax liability on said interest income by way of advance tax. The Assessee preferred appeal before CIT(A) raising ground inter alia with regard to levy of interest u/s 234C of the Act. The Ld. CIT(A)-58, Mumbai vide order dated 20.03.2024 relying on the decision of Hon'ble Apex court in the case of Director of International Tax, New Delhi Vs Mitsubishi Corporation ([2021] 130 taxmann.com 276 (SC)), dismissed the ground raised by the assessee with regard to levy of interest u/s 234C of the Act. The assessee preferred second appeal against the action of the Ld. CIT(A) confirming the action of the AO (CPC) in levying interest of Rs. 51,75,514 u/s 234C of the Act. 4.1 The Hon'ble ITAT' Bench allowed the appeal of the assessee relying on decision of jurisdictional High Court in the case of Director of Income Tax (International Taxation) Vs Nge Network Asia LLC.” 3. The sum and substance of the grievance is that the Tribunal has followed the order of the Hon’ble Bombay High Court, whereas the decision of the Hon’ble Supreme Court, followed by the CIT(A), has been ignored. 4. Having heard the rival submissions, we have carefully perused the order of the coordinate bench qua the grievance of the revenue. 5. At the very outset, we have to draw attention to the decision of the Hon’ble Supreme Court in 198 ITR 297, wherein the Hon’ble Supreme Court has laid down the ratio that a judgment should be read as a whole and has to be considered in the context in which it is delivered. The decision of the Hon’ble Supreme Court referred by the revenue is in the context of charging of interest u/s 234B of the Act, whereas the decision of the Hon’ble Bombay High Court, P a g e | 3 ITA No. 92/Mum/2025 A.Y. 2021-22 Standard Chartered Bank (Singapore) Ltd. followed by the coordinate bench, deals with the charging of interest u/s 234C of the Act. Therefore, we do not find any merit in this MA of the revenue, and the same is accordingly dismissed. 6. In the result, the MA of the revenue is dismissed. Order pronounced in the open court on 06.06.2025. Sd/- Sd/- RAHUL CHAUDHARY NARENDRA KUMAR BILLAIYA (न्यानयक सदस्य/JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 06.06.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "