M/s Patel Soma Joint Venture, Hyderabad v. ACIT, Hyderabad

ITA 248/HYD/2010 | 2006-2007
Pronouncement Date: 06-08-2010 | Result: Allowed

Appeal Details

RSA Number 24822514 RSA 2010
Assessee PAN AAATP3847H
Bench Hyderabad
Appeal Number ITA 248/HYD/2010
Duration Of Justice 5 month(s) 18 day(s)
Appellant M/s Patel Soma Joint Venture, Hyderabad
Respondent ACIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 06-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 06-08-2010
Date Of Final Hearing 29-07-2010
Next Hearing Date 29-07-2010
Assessment Year 2006-2007
Appeal Filed On 17-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI AKBER BASHA ACCOUNTANT MEMEBR ITA NO.248/HYD/10 : ASSTT. YE AR 2006-07 M/S. PATEL SOMA JOINT VENTURE HYDERABAD ( PAN AAATP 3847 H ) V/S. ASST. COMMISSIONER OF INCOME- TAX CIRCLE 6(1) HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.RAGHAVENDRA RAO RESPONDENT BY : SHRI K.V.N.CHARYA & SMT.V.MADHUVANI O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2006- 07 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- '1. THE LEARNED COMMISSIONER OF INCOME TAX(APP EAL) (CIT(A)) HAS ERRED ON FACTS AND IN LAW IN UPHOLDING THE REST RICTION OF INTEREST PAYABLE U/S. 244A OF THE INCOME-TAX ACT T O A PERIOD OF SEVEN MONTHS ONLY. INTEREST IS PAYABLE FOR THE PER IOD 01.04.2006 TO 31.07.2008. 2. THE LEARNED CIT(A) IS NOT JUSTIFIED IN HOLDING THA T THE FILING OF THE ANNEXURE TO FORM 16A ISSUED BY THE TAX-DEDUC TOR UNDER THE TDS PROVISIONS WITHOUT THE ANNEXURE IS DE LAYED FOR REASONS ATTRIBUTABLE TO THE ASSESSEE. ITA NO248./HYD/10 M/S. PATEL SOMA JOINT VENTURE HYDERABAD 2 3. THE LEARNED CIT(A) HAS FAILED TO NOTICE THAT THE A NNEXURE IS NOT STATUTORY IN NATURE AND THAT IN ANY CASE THE A NNEXURE WAS NOT ATTACHED TO FORM NO.16A AT THE TIME OF ITS ISSUE BY THE TAX DEDUCTOR. THEREFORE THE DELAY ENVISAGED U/ S. 244A(2) IS NOT ATTRIBUTABLE TO THE ASSESSEE. 4. THE LEARNED CIT(A) FAILED TO APPRECIATE THAT INTER EST U/S. 244A IS OF A COMPENSATORY NATURE AND THAT THE ASSES SEE IS ENTITLED TO INTEREST ON THE EXCESS OF TDS WHICH IS NOT VOLUNTARILY KEPT AS A DEPOSIT WITH THE GOVERNMENT W ITH A NOTICE FOR EARNING INTEREST. 5. FOR THESE AND ANY OTHER GROUNDS THAT MAY BE RAISED AT/BEFORE THE TIME OF HEARING IT IS PRAYED THAT THE LOWER AUTHORITIES BE DIRECTED TO GRANT INTEREST FOR THE P ERIOD FROM 01.04.2006 TO THE DATE OF THE ASSESSMENT ORDER 31.7 .2008 ON THE EXCESS AMOUNT OF TDS LYING WITH THE GOVERNME NT WITHOUT EXCLUSION OF ANY PERIOD.' 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS ERRED IN UPHOLDING THE RESTRICTION OF INTER EST PAYABLE UNDER S.244A OF THE ACT TO A PERIOD OF SEVEN MONTHS ONLY AN D IN FACT THE INTEREST WAS PAYABLE FOR THE ENTIRE PERIOD FROM 1.4.2 006 TO 31.7.2008 HE SUBMITTED THAT THE ASSESSEE HAS FILED THE CORRECT FORM NO .16A ISSUED BY THE DEDUCTOR AND THE DELAY IN FILING THE ANN EXURE TO FORM 16A WAS NOT ATTRIBUTABLE TO THE ASSESSEE. HE SUBMITTED TH AT THE ANNEXURE TO FORM NO.16A WAS NOT STATUTORY IN NATURE A ND THE TDS AMOUNT WAS IN FACT DEDUCTED BY THE GOVERNMENT DEPARTME NT AND WAS LYING WITH THE GOVERNMENT ITSELF AND THEREFORE THE RE IS NO REASON FOR NOT ALLOWING INTEREST THEREON TO THE ASSESSEE. HE RELI ED ON THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF D CIT V/S. MITSUBISHI CORPORATION (295 ITR 64). IN SUPPORT OF H IS SUBMISSIONS. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPO SED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMI TTED THAT IN ACCORDANCE WITH THE PROVISIONS OF LAW EVEN IF THE DELAY IS PARTLY ATTRIBUTABLE TO THE ASSESSEE THE REVENUE IS NOT BOUND TO PAY ITA NO248./HYD/10 M/S. PATEL SOMA JOINT VENTURE HYDERABAD 3 INTEREST THEREON. HE RELIED ON THE ORDERS OF THE ASSESSI NG OFFICER AND THE CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND T HAT IT IS AN ADMITTED POSITION THAT THE ASSESSEE HAS FILED THE STA TUTORY FORM NO.16A WELL IN TIME. THE TAX WAS DEDUCTED IN TIME BY THE EXECUTIVE ENGINEER DIVISION NO.1 METPALLY ON BEHALF OF THE G OVERNMENT AND WAS LYING WITH THE GOVERNMENT. THE DELAY IN ISSUING ANNEXURE TO FORM NO.16A BY THE GOVERNMENT DEDUCTOR WAS NOT ATTR IBUTABLE EVEN PARTLY TO THE ASSESSEE. THE ASSESSEE HAS FILED THE NECESSARY DE TAILS IN THE FORM OF ANNEXURE TO FORM NO.16A AT THE EARLIE ST OPPORTUNITY AFTER RECEIVING THE SAME FROM THE GOVERNMENT DEPARTME NT. A PERUSAL OF THESE DETAILS SHOW THAT THE DEDUCTOR GOVERNMENT DEP ARTMENT HAS DEPOSITED THE TAX TO THE CREDIT OF THE DEPARTMENT IN TIME. IN THESE FACTS OF THE CASE WE HOLD THAT THE DECISION OF THE HON'BL E HIGH COURT RELIED ON BY THE LEARNED COUNSEL FOR THE ASSESSEE APPLY TO THE FACTS OF THE CASE OF THE ASSESSEE AND THE ASSESSEE IS ENTITLED TO IN TEREST UNDER S.244A FOR THE ENTIRE PERIOD FROM 1.4.2006 T O 31.7.2008. IN THIS VIEW OF THE MATTER WE DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT ASSESSEE'S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 6.8.2010 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 6TH AUGUST 2010 ITA NO248./HYD/10 M/S. PATEL SOMA JOINT VENTURE HYDERABAD 4 COPY FORWARDED TO: 1. M/S. PATEL SOMA JOINT VENTURE 8-2-623/5/1/1/14 A VENUE 4 BANJARA HILLS HYDERABAD 2. ASST. COMMISSIONER OF INCOME-TAX CIRCLE 6(1) HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-IV HYDERABAD 4. COMMISSIONER OF INCOME-TAX III HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S .