Mahavir Spinning Mills (P) Ltd., Ludhiana v. ACIT, Ludhiana

ITA 199/CHANDI/2012 | 1999-2000
Pronouncement Date: 30-03-2012 | Result: Allowed

Appeal Details

RSA Number 19921514 RSA 2012
Assessee PAN AAACV5455B
Bench Chandigarh
Appeal Number ITA 199/CHANDI/2012
Duration Of Justice 1 month(s) 13 day(s)
Appellant Mahavir Spinning Mills (P) Ltd., Ludhiana
Respondent ACIT, Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 30-03-2012
Assessment Year 1999-2000
Appeal Filed On 16-02-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE MS SUSHMA CHOWLA JUDICIAL MEMBER AND SHRI MEHAR SINGH ACCOUNTANT MEMBER ITA NO. 199 /CHD/2012 ASSESSMENT YEAR: 1999-2000 MAHAVIR SPINNING MILLS (P) LTD. V. A.C.I.T. (FORMERLY KNOWN AS VARDMAN CIRCLE I LUDHIANA TEXTILE PROCESSORS (P) LTD.) LUDHIANA PAN: AAACV 5455 B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUBHASH AGGARWAL RESPONDENT BY: SHRI AKHILESH GUPTA DATE OF HEARING: 29.3.2012 DATE OF PRONOUNCEMENT: 30.03.2012 ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A)-II LUDHIANA DATED 01.12.2011 RELATING TO ASSESSMENT YE AR 1999-2000 AGAINST THE ORDER PASSED UNDER SECTION 154 OF THE I.T. ACT 1961. 2. THE ONLY ISSUE ARISING IN THE PRESENT CASE IS AL LOWABILITY OF INTEREST U/S 244A OF THE ACT ON TDS OF RS. 6 18 411/-. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IN THE ORIGINAL RETURN OF INCOME FILED ON 30.12.1999 HAD NOT CLAIME D CREDIT OF TDS OF RS. 6 18 411/-. THE ASSESSEE FILED REVISED RETURN ON 2 4.2.2001 IN RESPECT OF THE SAID CLAIM. THE AO HOWEVER DID NOT ALLOW THE CLAIM VIDE INTIMATION U/S 143(1) OF THE ACT. THE SAID INTIMATION HAD ALR EADY BEEN PASSED ON 10.2.2001. THE CLAIM OF THE ASSESSEE FOR ALLOWING CLAIM OF TDS WAS REJECTED BY THE CIT(A). THE TRIBUNAL IN ITA NO. 10 31/CHANDI/2005 RELATING TO ASSESSMENT YEAR 1999-2000 IN ASSESSEES OWN CASE VIDE ORDER DATED 26.12.2006 DIRECTED THE AO TO CONSIDER AND EX AMINE THE REVISED CLAIM OF THE ASSESSEE IN TERMS OF THE PROVISIONS OF SECTION 199 R.W.S. 237 2 OF THE ACT. THE TRIBUNAL FURTHER DECIDED THE ISSUE OF ALLOWABILITY OF INTEREST U/S 244A OF THE ACT VIDE PARA 5 OF THE ORD ER DATED 28.12.2006. THE TRIBUNAL HELD THAT THE INTEREST ON REFUND OF TH E TYPE OF TAX I.E. TDS IS TO BE ALLOWED FOR THE PERIOD COMPRISING FROM THE FI RST DAY OF THE APRIL OF THE ASSESSMENT YEAR TO THE DATE ON WHICH THE REFUND IS ACTUALLY GRANTED. THE TRIBUNAL FURTHER HELD - ON THIS ASPECT IN OUR VIEW IT WOULD MEET THE ENDS OF JUSTICE IF THE AO EXAMINES THE AFORESAID PL EA OF THE ASSESSEE AND RE-DETERMINES THE INTEREST ON REFUND DUE TO THE ASS ESSEE IN ACCORDANCE WITH LAW. THE AO VIDE ORDER DATED 28.12.2007 GAVE EFFECT TO THE ORDER OF THE TRIBUNAL AND DETERMINED THE REFUND DUE AT RS. 8 86 575/-. THEREAFTER THE AO PASSED AN ORDER U/S 154 OF THE ACT DATED 7.1 0.2008 REDUCING THE REFUND DUE TO THE ASSESSEE TO RS. 7 45 887/- BY RED UCING THE INTEREST U/S 244A OF THE ACT. THE CIT(A) UPHELD THE ORDER OF AO . THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF THE CIT(A). 4. THE ONLY GRIEVANCE OF THE ASSESSEE IN THE PRESEN T APPEAL IS THE INTEREST ALLOWABILITY U/S 244A OF THE ACT. ADMITTED LY THE ASSESSEE HAS BEEN ALLOWED CREDIT OF TDS OF RS. 6 18 411/-. THE ASSESSEE HAS SOUGHT INTEREST U/S 244A ON THE SAID REFUND OF TDS W.E.F. 1.4.1999. THE AO VIDE ORDER PASSED U/S 154 OF THE ACT DATED 7.10.2008 HAS ACKNOWLEDGED THE ORDER OF THE TRIBUNAL UNDER WHICH IT HAD DIRECTED T HE AO TO ALLOW THE INTEREST ON REFUND OF TDS FOR THE PERIOD COMPRISING FROM IST DAY OF APRIL OF THE ASSESSMENT YEAR TO THE DATE OF GRANT OF REFU ND. THE AO HOWEVER NOTED THAT THE ASSESSEE HAD NOT FURNISHED THE TDS C ERTIFICATE ALONG WITH THE RETURN OF INCOME AND HENCE CREDIT OF THE SAME C OULD NOT GIVEN FROM THE TIME OF FILING OF RETURN. 5. WE FIND NO MERIT IN THE STAND OF THE AO. THE TA X AT SOURCE IS DEDUCTED BY THE PAYER FROM THE ACCOUNTS OF THE PAYE E EITHER AT THE TIME OF ACCRUAL OF THE INCOME OR AT THE TIME OF PAYMENT WHI CHEVER IS EARLIER. THE SAID TAX IS HELD BY THE PAYER AND DEPOSITED IN THE ACCOUNT OF THE 3 DEPARTMENT. THE TAX THUS IN THE FORM OF TDS IN THE HANDS OF THE PAYEE IS AVAILABLE WITH THE DEPARTMENT BY WAY OF DEDUCTION O UT OF INCOME ACCRUING TO THE ASSESSEE OR PAID TO THE PAYEE IN THE FINANC IAL YEAR ITSELF. THE AMOUNT BEING AVAILABLE TO THE REVENUE DEPARTMENT BY WAY OF TAX AT SOURCE IF FOUND TO BE DEDUCTED IN EXCESS IS TO BE REFUNDED TO THE ASSESSEE BY WAY OF REFUND DUE ON WHICH THE ASSESSEE IS ENTIT LED TO CLAIM OF INTEREST AS PROVIDED U/S 244A OF THE ACT. THE SAID INTEREST IS TO BE COMPUTED FROM IST DAY OF APRIL OF THE ASSESSMENT YEAR TO THE DATE OF GRANT OF REFUND TO THE ASSESSEE. MERELY BECAUSE THE ASSESSEE HAD NOT FURNISHED THE TDS CERTIFICATE ALONG WITH RETURN OF INCOME DOES NOT E STABLISH THE STAND OF THE REVENUE. THE FURNISHING OF TDS CERTIFICATE IS A FO RMALITY BY THE PAYEE TO CLAIM ITS ADJUSTMENT AGAINST TAX DUE FOR THE RELEVA NT FINANCIAL YEAR. IN THE CURRENT SCENARIO OF FURNISHING RETURN OF INCOME BY WAY OF E-FILING THE PRACTICE OF FILING THE CERTIFICATE ALONG WITH RETUR N OF INCOME HAS BEEN DISPENSED WITH. THE CREDIT IS ALLOWED TO THE ASSES SEE FROM WHOSE ACCOUNT TAX HAD BEEN DEDUCTED BY WAY OF THE INFORMATION AVA ILABLE ON THE COMPUTER NET WORK. IN THE TOTALITY OF THE FACTS AN D CIRCUMSTANCES OF THE CASE AND IN CONTINUATION OF THE DIRECTIONS OF THE T RIBUNAL VIDE ORDER DATED 28.12.2006 WE DIRECT THE AO TO ALLOW INTEREST U/S 244A OF THE ACT ON TDS OF RS. 6 18 411/- FROM 1.4.1999 TO THE DATE OF GRANT OF REFUND. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS THUS ALL OWED. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30TH DAY OF MARCH 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 MARCH 2012 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/THE DR 4