The ACIT, Circle -1(1), Baroda v. Alembic Ltd.,, Baroda

ITA 1507/AHD/2006 | 1994-1995
Pronouncement Date: 02-08-2010 | Result: Dismissed

Appeal Details

RSA Number 150720514 RSA 2006
Assessee PAN AABCA7950P
Bench Ahmedabad
Appeal Number ITA 1507/AHD/2006
Duration Of Justice 4 year(s) 1 month(s) 25 day(s)
Appellant The ACIT, Circle -1(1), Baroda
Respondent Alembic Ltd.,, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 02-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 02-08-2010
Date Of Final Hearing 30-06-2010
Next Hearing Date 30-06-2010
Assessment Year 1994-1995
Appeal Filed On 07-06-2006
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABA D (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HON'BLE S HRI N.S. SAINI A.M.) I.T.A. NO. 1507/AHD./2006 ASSESSMENT YEAR : 1994-1995 ASSISTANT COMMISSIONER OF INCOME TAX -VS.- ALEMBIC LTD. BARODA CIRCLE-1(1) BARODA (PAN : AABCA 7950 P) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GAURAV BATHAM D.R. RESPONDENT BY : SHRI S.N. SOPARKAR O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER DATED 14.03.2006 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I BARODA FOR T HE ASSESSMENT YEAR 1994-95 DIRECTING THE ASSESSING OFFICER TO GRANT INTEREST ON REFUND OF IN TEREST PAYMENT UNDER SECTION 234B OF THE INCOME TAX ACT 1961 BY FOLLOWING THE RATIO OF THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LIMITED VS.- CIT & ORS. R EPORTED IN 200 CTR 505. 2. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A LI STED COMPANY ENGAGED IN MANUFACTURE AND MARKETING OF PHARMACEUTICALS PRODUCTS ETC. THE ASSE SSEE FILED THE ORIGINAL RETURN OF INCOME SHOWING INCOME OF RS.1 29 07 860/- WHICH WAS DULY A SSESSED. HOWEVER AGGRIEVED WITH THE ASSESSMENT ORDER THE ASSESSEE HAD FILED AN APPEAL BEFORE THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) WHICH WAS DECIDED BY THE LEARNED COMM ISSIONER OF INCOME TAX(APPEALS) VIDE ORDER DATED 2.12.2002. PURSUANT TO THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) THE ASSESSEE WAS ELIGIBLE FOR REFUND. THE ASSESSING OFFICER PASSED AN ORDER GIVING EFFECT TO THE APPELLATE ORDER HAD GRANTED INTEREST UNDER SECTION 244A ON THE REFUND BUT NOT TO THE EXTENT EXPECTED BY THE ASSESSEE-COMPANY. THE ASSESS EE-COMPANY APPLIED FOR RECTIFICATION UNDER SECTION 154 OF THE MISTAKE. VIDE APPLICATION DATED 10.01.2005 OF THE ASSESSEE-COMPANY THE ASSESSING OFFICER REJECTED THE SAID APPLICATION UND ER SECTION 154 ON THE GROUND THAT THE AMOUNT ADJUSTED AGAINST INTEREST UNDER SECTION 234B IS NOT COVERED UNDER THE EXCESS AMOUNT OF TAX AND PENALTY AS PER SECTION 244A OF THE ACT. AGGRIEVED W ITH THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS) THE ASSESSEE FILED AN APPEAL. THE GRIEVANCE OF THE ASSESSEE WAS THAT THE 2 ITA NO. 1507/AHD/2006 ASSESSING OFFICER GRANTED INTEREST OF RS.31 69 379/ - UNDER SECTION 244A INSTEAD OF RS.55 89 292/-. IN APPEAL AGAINST THE ORDER UNDER SECTION 154 IN THE IMPUGNED ORDER THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) EXAMINE D THE PROVISIONS CONTAINED IN SECTION 244A AND VARIOUS DECISIONS ON THIS ISSUE INCLUDING THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LIMITED VS.- CIT & ORS . REPORTED IN 200 CTR 505 AND FOLLOWING THOSE DECISIONS TOOK THE VIEW THAT THE ASSESSEE WAS ENTITLED TO INTEREST UNDER SECTION 244/ 244A ON THE DELAY IN GETTING REFUND OF TAXES AND INTERES T PAID BY IT IN EXCESS PURSUANT TO APPEAL PROCEEDINGS. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ACCORDINGLY HELD THAT THE ASSESSEE IS ENTITLED TO REFUND THE PAYMENT UNDER SE CTION 234B. AGGRIEVED WITH THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS) THE RE VENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING ON BEHALF OF REVENUE SHR I GAURAV BATHAM LD. D.R. APPEARED AND CONTENDED THAT THE LEARNED COMMISSIONER OF INCOME T AX(APPEALS) ERRED IN FOLLOWING THE RATIO OF THE DECISION REPORTED AT 200 CTR 505 BECAUSE THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF SANDVIK ASIA LTD. 280 ITR 643 (SC) IN APRO POS SECTION 244(1A) WHICH IS MATERIALLY DIFFERENT FROM SECTIN 244A IN SO FAR CLAUSE (B) OF SECTION 244A(1) IS CONCERNED. IN SECTION 244A(1)(B) WHICH IS A MACHINERY SECTION AND LAYS D OWN THE METHOD FOR WORKING OUT INTEREST THREE IS MENTION OF PAYMENT OF TAX OR PENALTY BUT N OT INTEREST. IN CONTRADISTINCTION TO THIS IN SECTION 244(1A) THE INTEREST IS PAYABLE ON AMOUNT SO FOUND IN EXCESS. THEREFORE THE RATIO OF THE DECISION OF THE HON'BLE SUPREME COURT SHALL NOT APP LY TO THE CASES FALLING UNDER SECTION 244A. 4. ON THE OTHER HAND SHRI S.N. SOPARKAR LD. COUNS EL APPEARING ON BEHALF OF THE ASSESSEE VEHEMENTLY SUPPORTED THE ORDER OF LEARNED COMMISSIO NER OF INCOME TAX(APPEALS). THE LD. COUNSEL OF THE ASSESSEE POINTED OUT THAT THE VIEW T AKEN BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) IN THE IMPUGNED ORDER IS NOT CONFORMIT Y WITH THE DECISION DATED 10.11.2006 OF ITAT C BENCH AHMEDABAD IN ASSESSEES OWN CASE I N ITA NO. 1666/AHD/2006 FOR THE ASSESSMENT YEAR 1999-2000. THE SAID DECISION IS REP ORTED IN (2008) 111 ITD 320 (AHD.). THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT IN THIS DECI SION IT HAS BEEN HELD THAT THE ASSESSEE IS ENTITLED TO INTEREST UNDER SECTION 244A ON THE REFU ND OF INTEREST PAID UNDER SECTION 234B OF THE INCOME TAX ACT 1961. 3 ITA NO. 1507/AHD/2006 5. HAVING HEARD BOTH THE SIDES WE HAVE CAREFULLY G ONE THROUGH THE ORDERS OF AUTHORITIES BELOW AS WELL AS THE DECISION OF THE ITAT C BENC H AHMEDABAD IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1999-2000 IN ITA NO. 1666/AHD/2006 REPORTED IN 111 ITD PAGE 320 (AHD.). THE HON'BLE SUPREME COURT IN THE CASE OF SANDVIK AS IA LTD VS.- CIT & ORS. (SUPRA) HELD THAT THE ASSESSEE WAS ENTITLED TO INTEREST ON DELAY IN G ETTING REFUND OF TAXES AND INTEREST PAID BY IT. SIMILAR VIEW IS TAKEN BY THE ITAT C BENCH AHMED ABAD IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1999-2000. AFTER CAREFULLY GOING TH ROUGH BOTH THE DECISIONS WE ARE OF THE VIEW THAT THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS ) IS LEGALLY AND FACTUALLY CORRECT IN HOLDING THAT THE ASSESSEE IS ENTITLED TO INTEREST UNDER SECTION 244A ON THE REFUND OF INTEREST PAID UNDER SECTION 234B OF THE INCOME TAX ACT 1961. WE THEREFORE DECLINE TO INTERFERE WITH THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS ) ON THIS ISSUE. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 02.08.20 10 SD/- SD/- (N.S. SAINI) (T.K. SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 02 / 08 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGI STRAR ITAT AHMEDABAD LAHA/SR.P.S.