DCIT Circle 9 (1), v. Surya Roshni Ltd,

ITA 1165/DEL/2008 | 1992-1993
Pronouncement Date: 30-04-2010 | Result: Allowed

Appeal Details

RSA Number 116520114 RSA 2008
Bench Delhi
Appeal Number ITA 1165/DEL/2008
Duration Of Justice 2 year(s) 27 day(s)
Appellant DCIT Circle 9 (1),
Respondent Surya Roshni Ltd,
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted G
Tribunal Order Date 30-04-2010
Date Of Final Hearing 23-03-2010
Next Hearing Date 23-03-2010
Assessment Year 1992-1993
Appeal Filed On 02-04-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G DELHI) BEFORE SHRI A.D. JAIN AND SHRI SHAMIM YAHYA ITA NOS. 1165 & 1166(DEL)2008 ASSESSMENT YEARS: 1992-93 & 1993-94 DY. COMMISSIONER OF INCOME TAX M/S. SURYA ROSH NI LTD. CIRCLE 9(1) NEW DELHI. V. PADMA T OWER 1 RAJENDRA PLACE NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI KISHORE B SR. DR RESPONDENT BY: SHRI SALIL AGGA RWAL ADVOCATE ORDER PER A.D. JAIN J.M. ITA NO. 1165(DEL)2008 : THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER OF THE CIT(A)-XII NEW DELHI DATED 8.01.08 FOR THE ASSESSMENT YEAR 1992-9 3. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DIRECTING THE AO TO ALLOW INTER EST TO THE ASSESSEE ON THE SAME FOOTING AS PROVIDED IN EXPLANATION TO SUB-SECT ION (1) OF SECTION 140(A) WHEREAS THE SAID EXPLANATION IS APPLICABLE ONLY FOR SELF ASSESSMENT TAX AND THAT APPLYING IT IN CASES OF INTEREST PAYABLE ON RE FUND WOULD TANTAMOUNT TO ALLOWING INTEREST ON INTEREST PAYABLE TO THE ASSESS EE FOR WHICH THERE IS NO PROVISION U/S 244A. ITA NOS. 1165&1166(DEL)08 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E LD. CIT(A) FAILED TO APPRECIATE THAT THERE WAS NO INTENTION OF THE LEGIS LATURE TO TREAT THE INTEREST PAYABLE TO THE ASSESSEE AT PAR WITH THE INTEREST PA YABLE BY THE ASSESSEE AND TWO INTERESTS ARE GOVERNED BY SEPARATE PROVISIONS O F THE ACT. 3. THE BRIEF FACTS ARE THAT THE AO PASSED AN OR DER U/S 154 ON 30.3.2005. IN THE SAID ORDER IT HAS BEEN NOTED BY THE AO THAT AS PER THE EARLIER ORDER U/S 154 DATED 30.3.2000 THE TAXABLE INCOME OF THE ASSESSEE WAS D ETERMINED AT RS. 3 34 80 234/-. IT IS NOTED BY THE AO THAT THE SAID INCOME WAS DETE RMINED TO BE SET OFF BROUGHT FORWARD LOSSES. IT WAS FURTHER NOTED BY THE AO THA T AS PER THE CLAIM OF THE ASSESSEE THERE ARE BROUGHT FORWARD LOSSES AND UNAB SORBED INVESTMENT ALLOWANCE AND UNABSORBED DEPRECIATION OF EARLIER YEARS OF A TOTAL AMOUNT OF RS.5 05 25 778/-. THE AO HAD ALLOWED SET OFF OF BROUGHT FORWARD LOSS TO THE EXTENT OF INCOME DETERMINED IN THE PRESENT YEAR AS PER EARLIER ORDER U/S 154 DATED 30.3.2000 AND HAD ALSO ALLOWED CARRY FORWARD OF UNABSORBED INVESTMENT ALLOWANCE TO THE EXTENT OF RS. 1 70 45 544/-. AS PER ITNS NO. 150 DATED 30.3. 05 THE AO HAD STARTED THE WORKING OF INCOME TAX REFUNDABLE ON THE BASIS THAT AS PER EARLIER ORDER U/S 154 DATED 30.3.2000 THE TAX PAYABLE BY THE ASSESSEE W AS WORKED OUT AT RS.29 17 670/- AND SINCE AS PER THE PRESENT ORDER OF THE AO U/S 15 4 THE TAX PAYABLE IS NIL THE AMOUNT OF TAX REFUNDABLE TO THE ASSESSEE COMES TO R S. 29 17 670/-. THE AO ALLOWED REFUND OF THIS AMOUNT OF TAX TO THE ASSESS EE AND THERE WAS NO DISPUTE ON ACCOUNT OF REFUND HELD TO BE ALLOWABLE BY THE AO VI DE ORDER DATED 30.3.05. THE DISPUTE IS REGARDING INTEREST ALLOWABLE TO THE ASSE SSEE U/S 244A ON ACCOUNT OF THIS ITA NOS. 1165&1166(DEL)08 3 REFUND. THE AO HAD WORKED OUT THIS INTEREST ALLOW ABLE TO THE ASSESSEE U/S 244A AT RS. 2 40 005/- AND SUCH INTEREST WAS ALLOWED BY THE AO FROM 1.4.2000 TO 31.3.2005. IT WAS THE CLAIM OF THE ASSESSEE BEFOR E THE LD. CIT(A) THAT THE AO SHOULD HAVE ALLOWED INTEREST ON THIS AMOUNT OF REFU ND FROM 1.4.92 TO 30.3.05. IN SHORT THE GRIEVANCE OF THE ASSESSEE WAS THAT THE AO HAD ERRED IN NOT ALLOWING INTEREST ON THIS REFUND FOR THE PERIOD FROM 1.4.92 TO 31.3.2000. TO THIS EXTENT WE ARE IN AGREEMENT WITH THE ASSESSEE BECAUSE WE HAVE NOTED THAT THE TOTAL TAX PAID BY THE ASSESSEE TILL 31.3.92 WAS RS. 1 61 40 887/- AND AS PER ITNS NO. 150 DATED 26.5.2000 THE AO HAD WORKED OUT THE REFUND AMOUNT TO RS. 1 32 23 217/- AFTER DEDUCTING THIS DEMAND OF RS. 29 17 670/- FROM THE T OTAL AMOUNT OF TAX PAID BY THE ASSESSEE TILL 31.3.92 OF RS. 1 61 40 887/-. IN ITN S NO. 150 DATED 26.5.2000 THE AO HAD ALLOWED INTEREST U/S 244A OF RS. 70 68 516/- AND THERE IS NO DISPUTE RAISED BY FILING AN APPEAL BEFORE THE LD. CIT(A) OR BEFORE US AGAINST SUCH CALCULATION OF INTEREST U/S 244A AS PER ITNS NO.150 DATED 26.5.20 00 AT RS. 70 68 516/-. HENCE THE WORKING OF THE ASSESSEE AS PER ANNEXURE-I FILED BEFORE THE LD. CIT(A) AND ALSO BEFORE US HAS NO RELEVANCE FOR DECIDING THE ISSUE W HICH AROSE OUT OF THE IMPUGNED ORDER U/S 154 DATED 30.3.05 AS TO WHETHER INTEREST ON THIS REFUND AMOUNT OF RS. 29 17 670/- SHOULD BE FROM 1.4.2000 AS HAS BEEN DON E BY THE AO OR SHOULD BE FROM 1.4.92 AS IS BEING CLAIMED BY THE ASSESSEE. HENCE WE REVERSE THIS ORDER OF LD. CIT(A) TO THIS EXTENT AND DIRECT THE AO TO ALLO W FURTHER INTEREST U/S 244A ON ITA NOS. 1165&1166(DEL)08 4 THIS REFUND AMOUNT OF RS. 29.17 LAKHS FOR THE PERIO D FROM 1.4.92 TO 3`1.3.2000 IN ADDITION TO INTEREST ALREADY ALLOWED BY HIM FOR THE PERIOD FROM 1.4.2000 TO 31.3.2005. CONSIDERING THE FACTS OF THE PRESENT CA SE SUCH INTEREST IS ALLOWABLE TO THE ASSESSEE ON SUCH REFUND FROM 1.4.92 AND SINCE T HE AO HAS ALLOWED INTEREST TO THE ASSESSEE ONLY FROM 1.4.2000 ON THIS AMOUNT OF R EFUND OF RS. 29 17 670/- WE DIRECT THE AO TO ALLOW TO THE ASSESSEE FURTHER INTE REST U/S 244A FOR THE PERIOD FROM 1.4.92 TO 31.3.2000 ON THIS AMOUNT OF REFUND OF RS. 29 17 670/-. REGARDING THE OBSERVATION OF THE LD. CIT(A) THAT THE PARAMETERS P RESCRIBED IN EXPLANATION TO SUB- SECTION (1) OF SECTION 140A SHOULD ALSO BE APPLICAB LE FOR THE PURPOSE OF CALCULATING INTEREST ALLOWABLE TO THE ASSESSEE U/S 244A WE ARE OF THE CONSIDERED OPINION THAT IN THE FACTS OF THE PRESENT CASE THERE IS NO NECESSI TY TO GO INTO THIS ARGUMENT BECAUSE IN THE FACTS OF THE PRESENT CASE INTEREST IS ALLO WABLE TO THE ASSESSEE ON THE AMOUNT OF REFUND OF RS. 29 17 670/- FOR THE PERIOD FROM 1. 4.92 TO 31.3.2000 IN ADDITION TO THE INTEREST ALREADY ALLOWED BY THE AO FOR THE PERI OD FROM 1.4.2000 ONWARDS. HENCE THIS ASPECT DOES NOT CALL FOR ANY ADJUDICATIO N OR DECISION ON OUR PART. ITA NO. 1166(DEL)2008 : 4. THE FACTS FOR ASSESSMENT YEAR 1992-93 BEIN G PARI MATERIA WITH THOSE IN ASSESSMENT YEAR 93-94 AND THE ISSUE RAISED THERE BE ING IDENTICAL ITA NO.1166(DEL)08 FOR ASSESSMENT YEAR 1993-94 IS ALSO DECIDED ACCORDINGLY. ITA NOS. 1165&1166(DEL)08 5 5. IN THE RESULT THE APPEALS OF THE REVENUE STAND ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 30 .04.2010 . SD/- SD/- (SHAMIM YAHYA) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30.04.2010 *RM COPY FORWARDED TO: 1. DCIT CIR.9(1) NEW DELHI. 2. M/S. SURYA ROSHNI LTD. PADMA TOWER-1 RAJENDRA PLA CE NEW DELHI. 3. CIT 4. CIT(A) 5. DR TRUE COPY BY ORDER DEPUTY REGISTRAR