The ACIT, Circle-2(1), Vijayawada v. M/s Agri Gold Foods & Farm Products Ltd. (formerly Agri Gold Farms Ltd.), Vijayawada

ITA 327/VIZ/2010 | 2000-2001
Pronouncement Date: 13-08-2010 | Result: Dismissed

Appeal Details

RSA Number 32725314 RSA 2010
Assessee PAN AABCA8733E
Bench Visakhapatnam
Appeal Number ITA 327/VIZ/2010
Duration Of Justice 2 month(s) 12 day(s)
Appellant The ACIT, Circle-2(1), Vijayawada
Respondent M/s Agri Gold Foods & Farm Products Ltd. (formerly Agri Gold Farms Ltd.), Vijayawada
Appeal Type Income Tax Appeal
Pronouncement Date 13-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 13-08-2010
Assessment Year 2000-2001
Appeal Filed On 01-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.327 & 328/VIZAG/2010 ASSESSMENT YEAR : 2000-01 & 2002-03 ACIT CIRCLE-2(1) VIJAYAWADA M/S. AGRI GOLD FOODS & FARM PRODUCTS LTD. (FORMERLY AGRI GOLD FARMS LTD.) VIJAYAWADA (APPELLANT) VS. (RESPONDENT) PAN NO.AABCA 8733E APPELLANT BY: SHRI D.S. SUNDER SINGH DR RESPONDENT BY: SHRI G.V.N. HARI CA ORDER PER SHRI S.K. YADAV JUDICIAL MEMBER:- THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINS T THE CONSOLIDATED ORDER OF THE CIT(A) FOR THE ASSESSMENT YEAR 2000-01 AND 2002-03 ON A SOLITARY GROUND THAT CIT(A) HAS ERRED IN CONCLUDING THAT THE OPERATION OF SECTION 234D IS TO BE HELD AS APPLICABLE FROM THE A SSESSMENT YEAR 2004-05 ONWARDS WITHOUT CONSIDERING THE ORDER OF THE HONBL E HIGH COURT OF KERALA ERNAKULAM IN CIT VS. KERALA CHEMICALS & PROTEINS LT D. IN ITA NO.1692 OF 2009. 2. THE BRIEF FACTS BORNE OUT FROM THE RECORD ARE TH AT ASSESSING OFFICER HAS LEVIED THE INTEREST U/S 234D AT RS.49 850/- AND RS. 13 91 372/- FOR ASSESSMENT YEAR 2000-01 AND 2002-03 RESPECTIVELY. THE ASSESSEE SOUGHT RECTIFICATION U/S 154 OF THE ACT CLAIMING DELETION OF INTEREST LEVIED U/S 234D OF THE ACT ON THE GROUND THAT INTEREST U/S 234D WAS NO T LEVIABLE IN RESPECT OF ASSESSMENTS FALLING PRIOR TO THE ASSESSMENT YEAR 20 04-05 RELYING UPON THE ORDER OF THE TRIBUNAL DELHI BENCH IN THE CASE OF IT O VS. M/S. EKTA PROMOTERS PVT. LTD. (2008) 117 TTJ DELHI (SB) 289. THE REQUE ST OF THE ASSESSEE WAS TURNED DOWN BY THE A.O. HAVING OBSERVED THAT THERE WAS NEITHER A MISTAKE OF FACT NOR A MISTAKE OF LAW APPARENT FROM THE RECORD AND THE ISSUE WAS ALSO NOT 2 FREE FROM CONTROVERSY. HE ACCORDINGLY HELD THE ISS UE BEING DEBATABLE WAS OUTSIDE THE PURVIEW OF REMEDIAL ACTION U/S 154 OF T HE ACT. 3. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT( A) AND PLACED THE RELIANCE UPON THE ORDER OF THE TRIBUNAL IN THE CASE OF ITO VS. EKTA PROMOTERS PVT. LTD. (SUPRA) IN WHICH IT WAS HELD THAT THIS AM ENDMENT WAS SUBSTANTIVE AMENDMENT AND WAS APPLICABLE ONLY FROM THE ASSESSME NT YEAR 2004-05 ONWARDS. THE OTHER ORDERS OF THE TRIBUNALS WERE AL SO RELIED ON BY THE ASSESSEE BEFORE THE CIT(A). HAVING CONVINCED WITH THE ARGUMENTS OF THE ASSESSEE THE CIT(A) HAS DELETED THE INTEREST LEVIE D U/S 234D AFTER HAVING OBSERVED THAT INTEREST CHARGED U/S 234D WAS NOT IN CONSONANCE WITH LAW. 4. NOW THE REVENUE IS BEFORE US WITH THE SUBMISSION S THAT WHILE ADJUDICATING THE ISSUE CIT(A) HAS NOT FOLLOWED THE JUDGEMENT OF THE KERALA HIGH COURT IN THE CASE OF CIT VS. KERALA CHEMICALS & PROTEINS LTD. (SUPRA). 5. DURING THE COURSE OF HEARING THE LD. D.R. WAS A SKED TO PLACE A JUDGEMENT OF THE KERALA HIGH COURT AS IT WAS NOT RE PORTED IN ANY OF THE JOURNAL. SUFFICIENT TIME WAS GIVEN TO THE D.R. FOR PLACING THE SAME BUT HE COULD NOT PLACE FOR OUR PERUSAL DESPITE A LAPSE OF A WEEK. THE LD. D.R. WAS ALSO ASKED TO PLACE SOMETHING ON RECORD TO ESTABLIS H THAT THIS ORDER PASSED BY THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF EKTA PROMOTERS PVT. LTD. (SUPRA) HAS BEEN OVER RULED BY THE HIGHER JUDICIAL FORUM. BUT NOTHING HAS BEEN PLACED ON RECORD. IN THE LIGHT OF THESE FACTS WE ARE OF THE VIEW THAT SINCE THE ISSUES INVOLVED IS SQUARELY COVERED BY TH E ORDER OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. M/S. E KTA PROMOTERS PVT. LTD. (SUPRA) AND OTHER ORDERS OF THE TRIBUNAL CITED IN T HE ORDER OF THE CIT(A) THE ASSESSING OFFICER OUGHT TO HAVE FOLLOWED THE ORDER OF THE TRIBUNAL AND DECIDED THE ISSUES IN TERMS OF THE RATIO LAID DOWN BY THE TRIBUNAL. BUT THE A.O. HAS TAKEN A CONTRARY VIEW WITHOUT BRINGING ANY THING ON RECORD THAT THE ORDERS OF THE TRIBUNALS ARE REVERSED BY THE HIGHER JUDICIAL FORUM. WE DO NOT APPRECIATE THE ACTION OF THE A.O. AS BEING A SUBORD INATE AUTHORITY HE IS REQUIRED TO FOLLOW THE ORDER OF THE SPECIAL BENCH O F THE TRIBUNAL. 3 6. A RELIANCE WAS ALSO PLACED ON THE JUDGEMENT OF T HE APEX COURT IN THE CASE OF M/S. J.K. SYNTHETICS LTD. VS. COMMERCIAL TA X OFFICER 119 CTR 222 (SC) IN WHICH SIMILAR VIEW WAS EXPRESSED IN CONTEXT WITH INTEREST U/S 11B OF RST ACT. WE HOWEVER FIND THAT CIT(A) HAS DECIDED T HE ISSUE FOLLOWING THE ORDER OF THE TRIBUNAL IN WHICH IT HAS BEEN CATEGORI CALLY HELD THAT SECTION 234D WHICH HAS BEEN BROUGHT ON THE STATUTE FROM 1 ST JUNE 2003 CANNOT BE APPLIED TO ASSESSMENT YEAR 2003-04 OR EARLIER YEARS AND IT WILL HAVE APPLICATION ONLY W.E.F. ASSESSMENT YEAR 2004-05. SINCE WE DO NOT FI ND ANY INFIRMITY IN THE ORDER OF THE CIT(A) WE CONFIRM THE SAME. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMI SSED. PRONOUNCED IN THE OPEN COURT ON 13.8.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM DATED 13 TH AUGUST 2010 COPY TO 1 THE ACIT CIRCLE-2(1) VIJAYAWADA 2 M/S. AGRI GOLD FOODS & FARM PRODUCTS LTD. (FORME RLY AGRI GOLD FARMS LTD.) 40-1-21/3 SURYA TOWERS 1 ST FLOOR M.G. ROAD VIJAYAWADA-520 010 3 THE CIT VIJAYAWADA 4 THE CIT(A) VIJAYAWADA 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM