Nahar Exports Ltd.,, Ludhiana v. JCIT,, Ludhiana

ITA 3/CHANDI/2010 | 1999-2000
Pronouncement Date: 09-07-2010 | Result: Dismissed

Appeal Details

RSA Number 321514 RSA 2010
Bench Chandigarh
Appeal Number ITA 3/CHANDI/2010
Duration Of Justice 6 month(s) 4 day(s)
Appellant Nahar Exports Ltd.,, Ludhiana
Respondent JCIT,, Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 09-07-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 09-07-2010
Date Of Final Hearing 06-05-2010
Next Hearing Date 06-05-2010
Assessment Year 1999-2000
Appeal Filed On 04-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI G.S.PANNU ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 3/CHD/2010 ASSESSMENT YEAR: 1999-2000 M/S NAHAR EXPORTS LTD. VS. JCIT RANGE-VII. NOW KNOWN AS NAHAR POLY LUDHIANA FILMS LTD. LUDHIANA PAN NO.AACN5708K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NAVDEEP SHARMA RESPONDENT BY: SHRI S.P. KHUTAN ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER O F CIT(A)-II LUDHIANA DATED 28.10.2009 RELATING TO ASSESSMENT YE AR 1999-2000 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. A CT. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1) THE LEARNED CIT(A) ERRED IN LAW AND ON THE FACTS OF THE CASE IN NOT FOLLOWING THE DIRECTIONS OF HON'BLE ITA T GIVEN IN CO NO.19/CHD/2006 IN THE CASE OF APPELLANT COMPANY TO DECIDE THE MATTER IN VIEW OF DECISION OF HON'BLE SUPREME COURT IN THE CASE OF CIT VS. KWALIA TY BISCUITS LTD. WHICH IS BINDING ON VARIOUS HIGH COU RTS AS WELL AS TRIBUNAL. 2) THAT THE CIT(A) ERRED IN LAW AND ON FACTS IN DECIDI NG THE ISSUE BY FOLLOWING THE DECISION OF HON'BLE 2 HIMACHAL HIGH COURT IN THE CASE OF CIT VS. UNITED VANASPATI LTD REPORTED IN 218 CTR 524(M.P.) AND BY IGNORING THE DECISION OF THE BOMBAY HIGH COURT IN T HE CASE OF SNOWCEM INDIA LTD REPORTED IN 178 TAXMAN 478 (BOMBAY). 3) THAT LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN NO T DELETING THE INTEREST CHARGED U/S 234-B AND 234-C BY ASSESSING OFFICER ON THE TAX COMPUTED U/S 115JA. DIRECTIONS MAY BE GIVEN TO DELETE THE INTEREST CHAR GED U/S 234-B & 234-C ON TAX ON BOOK PROFIT COMPUTED U /S 115JA OF THE ACT IN VIEW OF THE DECISION OF HON'BLE SUPREME COURT IN THE CASE OF KWALITY BISCUITS LTD. WHICH WAS FOLLOWED BY VARIOUS APPELLATE TRIBUNALS & HIGH COURTS. 3. THE ASSESSEE VIDE LETTER DATED 22.2.2010 HAS RAI SED THE FOLLOWING ADDITIONAL GROUND OF APPEAL :- THE LEARNED ASSESSING OFFICER ERRED IN LAW AND ON FACTS IN GIVING DIRECTIONS TO CHARGE INTEREST U/S 2 34-B AND 234-C ON THE TAX CALCULATED ON BOOK PROFIT COMPUTED U/S 115 JA OF THE ACT. DIRECTIONS BE GIVE N NOT TO CHARGE ANY INTEREST U/S 234B AND 234C ON THE TAX COMPUTED ON BOOK PROFIT U/S 115JA AS THE PROVISIONS OF SECTION 234B AND 234C ARE NOT APPLICABLE TO THE FACTS OF THE APPELLANT COMPANY. 4. THE LD. AR FOR THE ASSESSEE HAS FILED A DECLARAT ION UNDER SECTION 158A (1) OF THE INCOME TAX ACT CLAIMING THAT AN IDE NTICAL QUESTION OF LAW REGARDING CHARGING OF INTEREST U/S 234B AND 234C OF THE ACT ON THE TAX COMPUTED UNDER SECTION 115JA OF THE ACT IS PENDING BEFORE THE HON'BLE SUPREME COURT IN AN APPEAL FILED U/S 261 OF THE INC OME TAX ACT RELATING TO ASSESSMENT YEAR 1999-2000 IN THE CASE OF THE ASS ESSEE. THE COPY OF THE SLP HAS ALSO BEEN FILED ON RECORD. A REQUEST W AS MADE TO ADMIT THE DECLARATION U/S 158A OF THE ACT AS IDENTICAL QUESTI ON OF LAW IS INVOLVED. 3 THE ASSESSEE HAD MOVED THE APPLICATION ON 25.3.2010 AND THE LEARNED DR FOR THE REVENUE HAS NOT RAISED ANY OBJECTION TO ITS ADMISSION AND THE APPEAL IS HEARD. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. THE ISSUE IN THE PRESENT APPEAL IS AGAINST CHARGING OF INTEREST U/S 234B & 234C OF THE ACT ON THE TAXES CALCULATED ON THE BOOK PROFITS COMPUTED U/S 115JA OF THE ACT. THE CIT(A) RELYING ON THE RATIO LAID DOWN BY THE HON'BLE JURISDICTIONAL HIGH COURT IN CIT VS. UPPER INDIA STEEL MANUFACTURING AND ENGINEERING COMPANY & OTHER M/S N AHAR EXPORTS LTD. [279 ITR 123 (P&H) ] HAD HELD THAT INTEREST U/S 234 B & 234 C IS TO BE CHARGED ON THE INCOME COMPUTED U/S 115JA OF THE ACT . WE ARE IN CONFORMITY WITH THE ORDER OF THE CIT(A) IN VIEW OF THE RATIO LAID DOWN BY THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF THE ASSESSEE ITSELF (SUPRA). ACCORDINGLY WE UPHOLD THE ORDER OF CIT(A). HOWEVER IN VIEW OF THE APPLICATION MOVED BY THE ASSESSEE U/ S 158 A OF THE ACT WHERE IDENTICAL ISSUE IS PENDING BEFORE THE HON'BLE APEX COURT WE DIRECT THE ASSESSING OFFICER TO APPLY THE RATIO PROPOUNDED BY HON'BLE SUPREME COURT IN AN APPEAL FILED U/S 261 OF THE INCOME TAX ACT RELATING TO ASSESSMENT YEAR 1999-2000 ONCE THE SAME IS AVAILAB LE. THE GROUNDS OF APPEAL OF THE ASSESSEE ARE DISMISSED. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 9 TH DAY OF JULY 2010. SD/- SD/- (G.S.PANNU) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 9 TH JULY 2010 RKK COPY TO: 4 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR