ADIT (IT)-3(1), MUMBAI v. M/S. GE ASSET MANAGEMENT INCORPORATED, MUMBAI

ITA 3685/MUM/2009 | 1999-2000
Pronouncement Date: 05-02-2010 | Result: Dismissed

Appeal Details

RSA Number 368519914 RSA 2009
Assessee PAN AAATG3740P
Bench Mumbai
Appeal Number ITA 3685/MUM/2009
Duration Of Justice 8 month(s)
Appellant ADIT (IT)-3(1), MUMBAI
Respondent M/S. GE ASSET MANAGEMENT INCORPORATED, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 05-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 05-02-2010
Assessment Year 1999-2000
Appeal Filed On 05-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH MUMBAI BEFORE SHRI D. K. AGARWAL JM & SHRI R.K. PANDA AM I.T.A. NO. 3685/MUM/2009 (ASSESSMENT YEAR 1999-2000) I.T.A. NO. 3686/MUM/2009 (ASSESSMENT YEAR 2003-2004) ADIT (IT)-3(1) SCINDIA HOUSE R.NO. 136 1 ST FLOOR N.M. ROAD MUMBAI VS. M/S. GE ASSET MGT. INC. A/C. GENERAL ELECTRIC PENSION TRUST C/O. PRICEWATERHOUSECOOPERS PVT. LTD. CAS PWC HOUSE PLOT NO. 18/A GURU NANAK ROAD (STATION ROAD) BANDRA (WEST) MUMBAI-400 050 PAN: AAATG3740P APPELLANT RESPONDENT APPELLANT BY: MR. MOHD. USMAN RESPONDENT BY: MR. KANCHUN KAUSHAL & MR. DHANESH BAFNA O R D E R DATE OF HEARING: 04.02.2010 DATE OF ORDER: 05.02.2010 PER R.K. PANDA AM: THE ABOVE TWO APPEALS FILED BY THE REVENUE ARE DIR ECTED AGAINST THE SEPARATE ORDERS DATED 5 TH MARCH 2009 OF THE CIT(A)- XXXIII MUMBAI RELATING TO ASSESSMENT YEARS 1999-2 000 AND 2003- 04 RESPECTIVELY. SINCE IDENTICAL GROUNDS ARE TAKE N BY THE REVENUE IN BOTH THE APPEALS THEREFORE THESE WERE HEARD TO GETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. I.T.A. NO. 3685/MUM/2009 (A.Y. 1999-2000): 2. THE GROUNDS OF RAISED BY THE REVENUE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN HOLDING THAT TH E ASSESSEE IS ENTITLED TO INTEREST UNDER SECTION 244A ON THE AMOUNT OF SELF-ASSESSMENT TAX PAID. 2. WITHOUT PREJUDICE TO THE ABOVE THE LD. CIT(A) ERRE D IN HOLDING THAT THE ASSESSEE IS ENTITLED TO THE SAI D I.T.A. NOS. 3685&3686/MUM/2009 M/S. GE ASSET MANAGEMENT INC. ======================== 2 INTEREST FROM THE DATE OF PAYMENT OF SELF ASSESSMEN T TAX. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CIT(A ) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE A O RESTORED. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE HAD PAID ADVANCE TAX SELF ASSESSMENT TAX AND TAX ON REGULAR ASSESSMENT AS FOLLOWS: PARTICULARS DATE AMOUNT (RS.) ADVANCE TAX 31.03.99 17 33 529 ADVANCE TAX 31.03.99 53 57 257 SELF ASSESSMENT TAX 25.06.99 76 255 SELF ASSESSMENT TAX 13.02.06 1 88 90 839 TAX ON REGULAR ASSESSMENT 26.03.07 1 61 81 525 4 22 39 405 4. THE ASSESSING OFFICER IN THE ORDER PASSED ON 3 RD OCTOBER 2008 DETERMINED THE TAX LIABILITY OF THE ASSESSEE A T RS.2 22 92 037. ACCORDINGLY AN AMOUNT OF RS.1 99 47 368 WAS PAYABLE TO THE ASSESSEE. HOWEVER THE ASSESSING OFFICER GRANTED I NTEREST U/S. 244A OF THE INCOME-TAX ACT 1961 (THE ACT) ONLY ON THE A MOUNT OF THE TAX PAID ON REGULAR ASSESSMENT I.E. RS.1 61 81 525 AND DID NOT GRANT INTEREST ON THE BALANCE AMOUNT OF RS.1 88 90 839 PA ID BY WAY OF SELF ASSESSMENT TAX ON 13 TH FEBRUARY 2006. 5. BEFORE CIT(A) IT WAS SUBMITTED THAT INTEREST U/S. 2 44A SHOULD ALSO BE GRANTED ON THE AMOUNT OF SELF ASSESS MENT TAX. THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CA SE OF CIT VS. ASHOK LEYLAND LTD. REPORTED IN 254 ITR 641 THE DE CISION OF THE HONBLE SUPREME COURT IN THE CASE OF SANDVIK ASIA L TD. VS. CIT REPORTED IN 280 ITR 643 AND THE DECISION OF THE KOL KATA BENCH OF THE TRIBUNAL IN THE CASE OF HOOGHLY MILLS CO. VS. D CIT REPORTED IN 74 ITD 309 WERE RELIED UPON. 6. BASED ON THE VARIOUS ARGUMENTS ADVANCED BY THE ASSE SSEE THE CIT(A) HELD THAT THE ASSESSEE IS ENTITLED TO AD DITIONAL INTEREST U/S. 244A OF THE ACT ON THE AMOUNT OF SELF ASSESSME NT TAX PAID FROM I.T.A. NOS. 3685&3686/MUM/2009 M/S. GE ASSET MANAGEMENT INC. ======================== 3 THE DATE OF PAYMENT I.E. 13 TH FEBRUARY 2006 TILL THE DATE OF GRANTING OF REFUND. THE RELEVANT OPERATIVE PARA OF THE CIT( A) READS AS UNDER: 15. I HAVE GONE THROUGH THE ABOVE FACTS AND THE CONTENTIONS RAISED BY THE APPELLANT IN THIS REGARD. THE PROVISIONS OF SECTION 244A(1)(B) INCLUDE ALL SITUAT IONS OF REFUNDS OTHER THAN THOSE COVERED BY SECTION 244A(1) (A) I.E. REFUNDS ARISING OUT OF ADVANCE TAX OR TDS. I NTEREST UNDER SECTION 244A(1)(B) IS PAYABLE TO THE APPELLAN T EVEN IF THE REFUND ARISES ON ACCOUNT OF SELF ASSESS MENT TAX PAID BY THE APPELLANT. THE ABOVE VIEW IS ALSO SUPPORTED BY THE DECISIONS IN CASE OF CIT VS. ASHOK LEYLAND LTD. (2002) 254 ITR 641 (MAD) AND HOOGHLY MILLS CO. LTD. V. DCIT (74 ITD 309) (CAL. ITA) AND HONBLE MUMBAI ITATS DECISION IN THE CASE OF DCIT VS. BSES LTD. 133 TTJ 227 (MUM). 15.1 BASED ON THE ABOVE I HOLD THAT THE APPELLANT IS ENTITLED TO ADDITIONAL INTEREST UNDER SECTION 244A ON THE AMOUNT OF SELF ASSESSMENT TAX PAID FROM THE DAT E OF PAYMENT I.E. FEBRUARY 13 2006 TILL THE DATE OF GRA NTING OF REFUND I.E. DECEMBER 2008. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE REVENU E IS IN APPEAL BEFORE US. 7. AFTER HEARING BOTH THE SIDES WE DO NOT FIND ANY IN FIRMITY IN THE ORDER OF THE CIT(A). ADMITTEDLY THE ASSESSING OFFICER HAS NOT ASSIGNED ANY REASONS FOR NOT GRANTING INTEREST ON S ELF ASSESSMENT TAX PAID BY THE ASSESSEE ON 13 TH FEBRUARY 2006. WE FIND THE LEARNED CIT(A) WHILE ALLOWING THE CLAIM OF THE ASSE SSEE HAS FOLLOWED THE DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUN AL IN THE CASE OF DCIT VS. BSES LTD. REPORTED IN 113 TTJ (MUM) 227. WE FIND THE TRIBUNAL IN THE SAID DECISION HAS HELD AS UNDER: (S HORT NOTE) CLAUSE (B) OF S. 244A(1) PROVIDES THAT IN ANY OTHE R CASE I.E. A CASE WHICH DOES NOT FALL WITHIN CL. (A) SU CH INTEREST HAS TO BE GRANTED FROM THE DATE OR AS THE CASE MAY BE DATES OF PAYMENTS OF THE TAX OR PENALTY TO THE DATE ON WHICH THE REFUND IS GRANTED. THE EXPLANATI ON BELOW CL. (B) PROVIDES THAT DATE OF PAYMENT OF TAX OR PENALTY MEANS THE DATE ON AND FROM WHICH THE AMOUN T OF TAX OR PENALTY SPECIFIED IN THE NOTICE OF DEMAND ISSUED UNDER S. 1567 IS PAID IN EXCESS OF SUCH DEMA ND. THERE IS NO DISPUTE THAT THE SELF ASSESSMENT TAX WA S I.T.A. NOS. 3685&3686/MUM/2009 M/S. GE ASSET MANAGEMENT INC. ======================== 4 PAID ON 29 TH JUNE 1998. IF THAT BE SO ONE NEED NOT GO TO THE DEFINITION OF THE SAID TERM IN THE EXPLANATION BELOW CL. (B).. THE EXPLANATION CAN IN NO MANNER CURTAIL OR RESTRICT THE PROVISIONS OF THE SECTION. AS THE REV ENUE HAS HAD USE OF THE SELF ASSESSMENT TAX RIGHT FROM29 TH JUNE 1998 IT IS BUT EQUITABLE THAT THE ASSESSEE S HOULD BE ENTITLED TO INTEREST FROM THAT DATE. THE ASSESS EE SHOULD BE ENTITLED TO INTEREST FROM 29 TH JUNE 1998 UP TO THE DATE OF THE REFUND AND NOT FROM THE DATE OF THE ASSESSMENT ORDER TO THE DATE OF REFUND AS HAS BEEN DIRECTED BY THE CIT(A). ASST. CIT VS. NATIONAL OR GANIC CHEMICALS LTD. (ITA NO. 7464/MUM/1997) AND ADDL. CIT VS. GRINDWELL NORTON LTD. (2006) 102 TTJ (MUM) 265; (2006) 100 ITD 245 (MUM) FOLLOWED; S. SUNDARAM PILLAI VS. V.R. PATTABIRAMAN (1985) 1 SCC 591 APPLI ED. 8. SINCE THE LEARNED CIT(A) HAS ALLOWED THE CLAIM OF T HE ASSESSEE BY FOLLOWING THE DECISION OF THE CO-ORDINA TE BENCH OF THE TRIBUNAL THEREFORE IN ABSENCE OF ANY CONTRARY MAT ERIAL BROUGHT TO OUR NOTICE BY THE LEARNED DR WE DO NOT FIND ANY IN FIRMITY IN THE ORDER OF THE CIT(A). ACCORDINGLY THE SAME IS UPHE LD. THE GROUNDS RAISED BY THE REVENUE ARE ACCORDINGLY DISMISSED. I.T.A. NO. 3686/MUM/2009 (A.Y. 2003-04): 9. AFTER HEARING BOTH THE SIDES WE FIND THE GROUNDS R AISED IN THE IMPUGNED APPEAL ARE IDENTICAL TO THE GROUNDS OF APPEAL IN I.T.A. NO. 3685/MUM/2009 ABOVE. WE HAVE ALREADY DECIDED T HE APPEAL AND THE GROUNDS RAISED BY THE REVENUE HAVE BEEN DIS MISSED. FOLLOWING THE SAME RATIO THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL ARE ALSO DISMISSED. 10. IN THE RESULT BOTH THE APPEALS FILED BY THE REVENU E ARE DISMISSED. ORDER PRONOUNCED ON 5 TH FEBRUARY 2010 SD/- (D.K. AGARWAL) JUDICIAL MEMBER SD/- (R.K. PANDA) ACCOUNTANT MEMBER MUMBAI DATED 5 TH FEBRUARY 2010 I.T.A. NOS. 3685&3686/MUM/2009 M/S. GE ASSET MANAGEMENT INC. ======================== 5 COPY TO: (1) THE APPELLANT (2) THE RESPONDENT (3) THE CIT(A)-XXXIII MUMBAI (4) THE DIT (IT) MUMBAI (5) THE DR G BENCH ITAT MUMBAI. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI TPRAO