Comfoams Ltd, Kottayam v. ACIT, Kottayam

ITA 43/COCH/2010 | 2006-2007
Pronouncement Date: 27-07-2011

Appeal Details

RSA Number 4321914 RSA 2010
Bench Cochin
Appeal Number ITA 43/COCH/2010
Duration Of Justice 1 year(s) 6 month(s) 2 day(s)
Appellant Comfoams Ltd, Kottayam
Respondent ACIT, Kottayam
Appeal Type Income Tax Appeal
Pronouncement Date 27-07-2011
Appeal Filed By Assessee
Bench Allotted DB
Tribunal Order Date 27-07-2011
Assessment Year 2006-2007
Appeal Filed On 25-01-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH COCHIN BEFORE SHRI N.VIJAYAKUMARAN & SHRI SANJAY ARORA I.T.A.NO.43/COCH/2010 ASSESSMENT YEAR:2006-07 COMFOAMS LTD. VAZHAKALA BUILDINGS KK ROAD KOTTAYAM. PA NO.AACCC 9311P VS. THE ASST. COMM ISSIONER OF INCOME-TAX CIRCLE-I KOTTAYAM. (APPELLANT) ( RESPONDENT ) APPELLANT BY SHRI K.I.JOHN C.A. RESPONDENT BY MS. VIJAYAPRABHA JR.D R O R D E R PER N.VIJAYAKUMARAN J.M: THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD. CIT(APPEALS)-IV KOCHI DATED 11-1 1-2009 FOR THE ASSESSMENT YEAR 2006-07. THIS APPEAL AR ISES OUT OF THE ASSESSMENT COMPLETED U/S.154 OF THE I.T.ACT 1961. 2. THE FACTS ARE VERY RELEVANT FOR ADJUDICATING THE ISSUE RAISED IN THIS APPEAL. FOR THE ASSESSMENT YEAR UND ER CONSIDERATION THE ASSESSEE FILED ITS RETURN OF INC OME ON 24- 22-2006MANUALLY AND PAID THE TAX INCLUDING INTERES T U/S.234B & C. THE ACKNOWLEDGMENT IS ON ANNEXURE-I DATED ITA NO. 43/COCH/2010 2 24-11-2006. THE COMPANY HAS TO SUBMIT E FILING OF RETURNS BUT ASSESSEE HAS FILED THE PAPER FORMAT RETURN SIN CE THE ORIGINAL PAN ALLOTTED TO THE ASSESSEE SHOULD HAVE F OUR ALPHABETS AS C WHICH IN THE CASE OF THE ASSESSE E WAS ALLOTTED AS F WHICH IS APPLICABLE TO FIRMS. THI S WAS INTIMATED TO THE ASSESSEE ONLY AT THE TIME OF FILIN G THE RETURN ON CONTACTING THE HELP DESK IT WAS INFORMED THAT A RETURN IN THE PAPER FORMAT COULD BE FILED. THE ORI GINAL PAN CARD IS IN ANNEXURE-II. BECAUSE OF THE MISTAKE AS SESSEE IMMEDIATELY APPLIED FOR A NEW PAN CARD AND WAS ALLO TTED A NEW PAN CARD WHICH IS ANNEXURE-III AND COPY OF THE PAN CARD IS ANNEXURE-IV. NOW THE DISPUTE EMANATES. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE RETURN F ILED ON 24- 11-2006 IN THE PAPER FORMAT IS DEFECTIVE AS THE PAN RELATED TO THAT OF A FIRM. VIDE LETTER DATED 5-3-2008 NE W PAN WAS INTIMATED TO THE ASSESSING OFFICER. FURTHER LETTE R WAS RECEIVED BY THE ASSESSEE ON 10-03-2008 REQUESTING T HE ASSESSEE TO E FILE A RETURN IN THE NEW PAN AND FOR WARD THE COPY OF THE ACKNOWLEDGMENT SLIP. ACCORDINGLY AS SESSEE SENT AN E FILE RETURN ON 12-3-2009 DECLARING THE SA ME TOTAL INCOME DECLARED IN THE RETURNED FILED ON 24-11-2006 . AN INTIMATION U/S.143(1) DATED 28-03-2008 WAS RECEIVED BY THE ASSESSEE WHEREIN THEY ADMITTED IN THE INTIMATION T HAT THE ITA NO. 43/COCH/2010 3 DATE OF FILING OF RETURN IS DATED 24-11-2006. NON 22-08- 2008 A NOTICE OF OUTSTANDING DEMAND WAS RECEIVED FR OM THE ACIT. CIRCLE-I KOTTAYAM INCLUDING THE INTEREST U /S.234A AND 234B. A RECTIFICATION LETTER WAS FILED INFORM ING THAT THE DEMAND AS PER 143(1) DATED 28-0-3-2008 AROSE ON ACC OUNT OF CREDIT NOT BEING GIVEN FOR THE SELF ASSESSMENT T AX PAID. WHILE THE MATTER STOOD SO CONCLUDED FURTHER INTIMA TION U/S.143(1) SLAPPED ON THE ASSESSEE RAISING A DEMAND OF RS.5 50 082/-. THE RECTIFICATION ORDER WAS PASSED ON 27-4- 2009 RAISING A DEMAND OF RS.49 250/- AFTER GIVING C REDIT FOR THE SHORT CREDIT. A RECTIFICATION WAS FILED ON 30 -4- 2009STATING THAT THE DEMAND HAS ARISEN ONLY ON ACCO UNT OF LEVY OF INTEREST U/S.234A AND 234B BY TAKING THE DA TE OF FILING OF RETURN AS 12-03-2008 AS AGAINST THE CORRE CT DATE 24-11-2006. THIS IS THE CRUX ISSUE UNDER DISPUTE. 3. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE FIRST LEVY OF INTEREST U/S.234A IS OF RS.37 875/- AND U/S.234B IS AT RS.11 370/. THIS ARISES FROM THE IMPUGNED ORDER DATED 154 DATED 227-4- 2009 RESULTING IN A DEMAND OF RS.49.250/- WHICH IS AGGREGATE OF THE ABOVE TWO INTEREST. THE ASSESSIN G OFFICER RELIED ON THE CIRCULAR OF CBDT DATED 10-10-2006 WHE REIN IT ITA NO. 43/COCH/2010 4 HAS BEEN STATED THAT THE RETURN FILED AFTER 224-07- 2007 WERE TO BE TRANSMITTED ELECTRONICALLY. THEREFORE THE ASSESSING OFFICER WAS OF THE VIEW THAT PAPER FORMAT RETURN FI LED ON 24- 11-2006 IS NOT A VALID ONE. 4. HOWEVER ON CONSIDERING THE FACTS WE FIND THAT T HE DEPARTMENT HAS ISSUED A WRONG ALLOTMENT OF PAN. THIS IS NOT THE FAULT OF THE ASSESSEE. IN THE EARLIER YEARS THE ASSESSMENTS W ERE COMPLETED BASED ON THE ORIGINAL PAN ONLY. THIS IS THE FIRST YEAR OF E FILING RETURN DISPENSING THE PAPER FORMAT. THIS IS THE ISSUE WH ICH CREPT IN THIS YEAR BECAUSE OF THE WRONG ISSUE OF PAN AND THE ASSESSEE COULD NOT SUBMIT E FILING OF RETURN WITHIN THE STIPULATED DATE BECAU SE OF THE HANDICAP EXPERIENCED. THIS HAS BEEN POINTED OUT TO THE DEP ARTMENT AND THE DEPARTMENT HAS RECTIFIED THE MISTAKE BY ISSUING A N EW PAN AND THE NEW PAN WAS INTIMATED TO THE OFFICER AND SUBSEQUENT LY THE DEPARTMENT REQUESTED THE ASSESSEE TO SUBMIT E FILIN G OF RETURN IN THE NEW PAN AND FORWARD THE COPY OF ACKNOWLEDGMENT SLIP . IT IS NOT DISPUTED THAT IN THE INTIMATION ISSUED U/S.143(1) T HE DEPARTMENT HAS ACCEPTED THE DATE OF FILING AS 24-11-2006 I.E. WIT HIN THE DUE DATE. HENCE WE HAVE NO HESITATION IN SETTING ASIDE THE O RDERS OF THE AUTHORITIES BELOW AS THERE IS NO DELAY ATTRIBUTED O N THE PART OF THE ASSESSEE FOR THE LEVY OF INTEREST U/S.234A AND 234B . ITA NO. 43/COCH/2010 5 5. FURTHER THE DECISION IN THE CASE OF PRIME SECUR ITIES LTD. VS. ACIT (2009) 226 CTR (BOM) 247 AND THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. MA SONEILAN (INDIA) LTD. (2000) 242 ITR 569 ARE VERY RELEVANT. UNDER THE AB OVE CIRCUMSTANCES RESPECTFULLY FOLLOWING THE ABOVE DEC ISIONS WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND ALLOW THE A PPEAL OF THE ASSESSEE. THUS THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. SD/- SD/- (SANJAY ARORA) (N.VIJAYKUMARAN) ACCOUNTANT MEMBER JUDICIAL M EMBER ERNAKULAM DATED THE 27 TH JULY 2011. PM. COPY FORWARDED TO: 1. COMFOAMS LTD. VAZHAKALA BUILDINGS KK ROAD KOTTAY AM. 2. THE ACIT. CIRCLE-I KOTTAYAM. 3. CIT(A)-IV KOCHI. 4. CIT KOTTAYAM. 5. D.R.