The ITO, TDS-4,TRS Range,, Ahmedabad v. Vishal Fabrics Pvt.Ltd.,, Ahmedabad

ITA 448/AHD/2007 | 2001-2002
Pronouncement Date: 09-04-2010 | Result: Dismissed

Appeal Details

RSA Number 44820514 RSA 2007
Assessee PAN AAACV6304R
Bench Ahmedabad
Appeal Number ITA 448/AHD/2007
Duration Of Justice 3 year(s) 2 month(s) 8 day(s)
Appellant The ITO, TDS-4,TRS Range,, Ahmedabad
Respondent Vishal Fabrics Pvt.Ltd.,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 09-04-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 09-04-2010
Date Of Final Hearing 31-03-2010
Next Hearing Date 31-03-2010
Assessment Year 2001-2002
Appeal Filed On 31-01-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI JM AND N. S. SAINI AM) ITA NO.448/AHD/2007 A. Y.: 2001-02 THE INCOME TAX OFFICER TDS-4 TDS RANGE 2 ND FLOOR AMRUT JAYANTI BHAVAN NAVJIVAN PRESS BUILDG. OFF ASHRAM ROAD AHMEDABAD VS VISHAL FABRICS PVT. LTD. CHIRIPAL HOUSE NR. SHIVRANJINI RASTA SATELLITE ROAD AHMEDABAD PA NO. AAACV 6304 R (APPELLANT) (RESPONDENT) APPELLANT BY KUMAR HRISHIKESH DR RESPONDENT BY SHRI P.M. MEHTA AR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-X AHMEDABAD DATED 15-11-2006 FOR ASSESSMENT YEAR 2001-02 ON THE FOLLOWING GROUND: 1. THE LD. CIT(A) ERRED IN LAW AND ON THE FACTS OF THE CASE IN DIRECTING THE A. O. TO DELETE THE DEMAND LEVIED U/S 201 (1) OF THE I. T. ACT AT RS.35 77 200/- AND INT EREST CHARGED U/S 201(1) (1A) OF RS.3 21 948/- WITHOUT APPRECIATING THE FACT THAT THERE IS NO TIME LIMITAT ION PROVIDED IN THE I. T. ACT 1961 FOR PASSING ORDERS UNDER THIS SECTIONS AND AS ALSO HELD BY HONBLE KERALA HI GH COURT IN THE CASE OF CIT VS TRICHUR CO-OP. BANK LTD . 184 CTR 400 (KER) 2003 AND THAT INTEREST U/S. 201(1A) C AN BE LEVIED IRRESPECTIVE OF THERE BEING NO TAX LIABIL ITY OF THE PAYEE. 2. THE LEARNED CIT(A) CONSIDERING THE EXPLANATION O F THE ASSESSEE AND THE SEVERAL DECISIONS OF THE TRIBUNAL NOTED THAT TH E ORDER PASSED BY THE AO IS TIME BARRED. THE FINDINGS OF THE LEARNED CIT( A) IN PARA 4 ARE REPRODUCED AS UNDER: ITA NO.448/AHD/2007 VISHAL FABRICS PVT. LTD. 2 4. I HAVE CAREFULLY GONE THROUGH THE SUBMISSION MA DE BY THE APPELLANT AND THE DECISIONS RELIED UPON BY THE APPELLANT. I FIND THAT THE ASSESSING OFFICER HAS PASSED THE ORDE R U/S. 201(1) & U/S. 201 (1A) ON 29/5/2006 FOR THE A. Y. 2 001-02 WHICH IS EVIDENTLY BEYOND THE LIMITATION OF FOUR YE ARS AS DECIDED BY THE VARIOUS TRIBUNALS OF BOMBAY AND DELH I. THE ORDER PASSED BY THE ITO IS BEYOND THE LIMITATION PE RIOD OF FOUR YEARS FROM THE END OF THE FINANCIAL YEAR OF ASSESSM ENT YEAR 2001-02. THE APPELLANT HAS ALSO ESTABLISHED THAT TH E PARTY FOR WHICH THE TDS WAS TO BE DEDUCTED HAD ALREADY PAID T HE TAXES UNDER SELF ASSESSMENT. FROM THE SECTION 201 (1A) IT IS SEEN THAT THERE IS AN AMENDMENT IN THE SECTION EFFECTIVE FROM 1/6/2006 ONLY WHEREIN IT HAS BEEN MADE MANDATORY F OR THE APPELLANT TO MAKE THE PAYMENT OF INTEREST. SUCH INT EREST SHALL BE PAID BEFORE FURNISHING THE QUARTERLY STATEMENT F OR EACH QUARTER IN ACCORDANCE WITH THE PROVISIONS OF SUB-SE CTION (3) OF SECTION 200. HOWEVER THE PLEA OF THE ASSESSEE IN SO FAR AS LIMITATION IS CONCERNED IS ACCEPTED IN VIEW OF THE VARIOUS DECISIONS BY THE ITAT OF BOMBAY & DELHI. SINCE THE ORDER PASSED BY THE ITO TDS-4 AHMEDABAD IS BEYOND THE PE RIOD OF FOUR YEARS FROM THE END OF THE FINANCIAL YEAR THER EFORE FOLLOWING THE DECISION OF VARIOUS TRIBUNALS I DIRE CT THE ITO TDS-4 AHMEDABAD TO DELETE THE INTEREST LEVIED U/S. 201(1A) OF RS.3 21 948/-. SINCE THE PLEA OF THE APPELLANT R EGARDING TIME LIMITATION IS ACCEPTED. I DO NO CONSIDER IT NE CESSARY TO ADJUDICATE UPON OTHER GROUNDS OF APPEAL. 3. THE LEARNED DR SUBMITTED THAT THERE IS NO TIME L IMITATION PROVIDED UNDER THE ACT TO PASS THE IMPUGNED ORDER BY THE AO. ON THE OTHER HAND THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION MADE BEFORE THE AUTHORITIES BELOW AND SUBMITTED THAT ORD ER PASSED BY THE AO IS TIME BARRED. THE AO PASSED THE ORDER ON 29-05-20 06 FOR THE ASSESSMENT YEAR UNDER APPEAL I. E. 2001-02 AND THER E ARE SEVERAL DECISIONS IN SUPPORT OF THE FINDINGS OF THE LEARNED CIT(A) THAT NO SUCH ORDER CAN BE PASSED AFTER EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVANT FINANCIAL YEAR. HE HAS SUBMITTED THAT THE ISSUE IS NOW SQUARELY COVERED BY THE JUDGMENT OF THE HONBLE DELHI HIGH C OURT IN THE CASE OF CIT VS NHK JAPAN BROADCASTING CORPORATION 305 ITR 1 37 (DEL). ITA NO.448/AHD/2007 VISHAL FABRICS PVT. LTD. 3 4. ON CONSIDERATION OF THE ABOVE FACTS AND CONSIDER ING THE FINDINGS OF THE LEARNED CIT(A) ABOVE WE ARE OF THE VIEW THAT T HE ISSUE IS NOW SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS NHK JAPAN BROADCASTING CORPORATION (SUPRA) IN WHICH IT WAS HELD THAT THE DATE OF KNOWLEDGE WAS NO RELEVANT FOR THE PURPOSE O F EXERCISING JURISDICTION IN SO FAR AS THE PROVISIONS OF THE ACT WERE CONCERNED. TIME LIMIT OF FOUR YEARS PRESCRIBED BY THE TRIBUNAL CALLED FOR NO INTERFERENCE AND ACTION WAS TO BE INITIATED BY THE COMPETENT AUTHORITY UNDER THE ACT WHERE NO LIMITATION WAS PRE SCRIBED WITHIN THE PERIOD OF FOUR YEARS. THE ACCEPTANCE OF LIABILI TY BY THE ASSESSEE WOULD NOT BY ITSELF EXTEND THE PERIOD OF LIMITATION NOR WOULD IT EXTEND THE REASONABLE TIME THAT WAS POSTULATED BY T HE SCHEME OF THE ACT. MERELY BECAUSE IT HAD ADMITTED ITS LIABILI TY AND AGREED TO PAY TAX VOLUNTARILY THE ASSESSEE COULD NOT BE PUT IN A SITUATION WORSE THAN IF IT HAD CONTESTED ITS LIABILITY. 5. IN VIEW OF THE ABOVE IT IS CLEAR THAT THE FINDI NG OF THE LEARNED CIT(A) BASED UPON DIFFERENT ORDERS OF THE TRIBUNAL WHICH HAVE BEEN CONFIRMED BY THE HONBLE DELHI HIGH COURT IN THE CA SE ABOVE THEREFORE WE DO NOT FIND ANY MERIT IN THE DEPARTMENTAL APPEAL . THE SAME IS ACCORDINGLY DISMISSED. 6. AS A RESULT THE DEPARTMENTAL APPEAL IS DISMISSE D. ORDER PRONOUNCED ON 09-04-2010 SD/- SD/- (N. S. SAINI) ACOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 09-04-2010 LAKSHMIKANT/- ITA NO.448/AHD/2007 VISHAL FABRICS PVT. LTD. 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD