ITO WD 9(3)(3), MUMBAI v. VISHNU LAMINAITON P. LTD, MUMBAI

ITA 5385/MUM/2010 | 2006-2007
Pronouncement Date: 30-09-2011 | Result: Allowed

Appeal Details

RSA Number 538519914 RSA 2010
Assessee PAN AABVC8284H
Bench Mumbai
Appeal Number ITA 5385/MUM/2010
Duration Of Justice 1 year(s) 2 month(s) 29 day(s)
Appellant ITO WD 9(3)(3), MUMBAI
Respondent VISHNU LAMINAITON P. LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted F
Tribunal Order Date 30-09-2011
Assessment Year 2006-2007
Appeal Filed On 01-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F MUMBAI BEFORE SHRI P.M.JAGTAP (A.M) & SHRI N.V.VASUDEVAN (J.M) ITA NO.5385/MUM/2010(A.Y. 2006-07) THE INCOME TAX OFFICER 9(3)(3) ROOM NO.227 AAYKAR BHAVAN MK ROAD MUMBAI 20 (APPELLANT) VS. M/S. VISHNU LAMINATION PVT. LTD. B-56 A-001 KAPIL CO-OP. HSG. SOCIETY LTD. GOKULDHAM GOREGAON(E) MUMBAI -63. PANAABVC 8284H (RESPONDENT) APPELLANT BY : SHRI PARTHSHASTRI NAIK RESPONDENT BY : NONE DATE OF HEARING : 28/09/2011 DATE OF PRONOUNCEMENT : 30/09/2011 ORDER PER N.V.VASUDEVAN J.M THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDE R DATED 19/4/2010 OF CIT(A) 20 MUMBAI RELATING TO A.Y 2006-07. NOTICE O F HEARING WAS SENT TO THE ASSESSEE AT THE ADDRESS GIVEN IN FORM NO.36. THE S AME HAS NEITHER BEEN RECEIVED BACK UNSERVED NOR ACKNOWLEDGEMENT OF SERVI CE RECEIVED. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS FOL LOWS: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN HOLDING THAT INTEREST UNDER SEC.234B AND 234C IS NOT CHARGEABLE WHEN INCOME TAX IS COMPUTED ON TH E BASIS OF BOOK PROFITS DETERMINED U/S. 1 15JB OF THE INCOME-TAX AC T 1961 DESPITE THE FACT THAT THE CASE OF SNOWCEM INDIA LTD. V. DCI T (313 ITR 170) RELIED ON BY THE LEARNED CIT(A) WAS IN THE CONTEXT OF SECTION 11 5JA WHEREAS THE ASSESSEES CASE IS GOVERNED BY SECTION 1 15JB AND THE LEVY OF INTEREST ULS.2348 AND 234C IS MANDATORY EVE N WHEN INCOME TAX IS COMPUTED ON THE BASIS OF BOOK PROFITS FOLLOWING THE RATIO OF THE DECISION IN THE CASE OF ACIT V. ASHIMA SYNTEX LTD ( SPECIAL BENCH) ITAT AHMEDABAD IN ITAT NO.2001/AHD/2002 AND 2002/A HD./2001) ITA NO.5385/MUM/2010(A.Y. 2006-07) 2 2. THE ISSUE RAISED BY THE REVENUE IN THIS APPEAL I S AS TO WHETHER INTEREST UNDER SS. 234B AND 234C OF THE INCOME TAX ACT 1961 (THE ACT) SHALL BE PAYABLE ON FAILURE TO PAY ADVANCE TAX IN RESPECT OF TAX PAYABLE UNDER S. 115JA/115JB OF THE ACT. AT THE TIME OF HEARING LD. D.R BROUGHT TO OUR NOTICE THAT HONBLE SUPREME COURT EVEN IN THE CONTEXT OF S ECTION 115JA OF THE ACT IN THE CASE OF JCIT VS. ROLTA INDIA LTD. 330 ITR 47 0 HELD THAT INTEREST UNDER SS. 234B AND 234C OF THE INCOME TAX ACT 1961 (THE ACT) SHALL BE PAYABLE ON FAILURE TO PAY ADVANCE TAX IN RESPECT OF TAX PAYABL E UNDER S. 115JA/115JB OF THE ACT. THE DECISION OF THE HON'BLE SUPREME COUR T IN THE CASE OF KWALITY BISCUITS LTD. 284 ITR 434 BASED ON WHICH THE HON BLE BOMBAY HIGH COURT RENDERED ITS DECISION IN THE CASE OF SNOCEM INDIA L TD. 313 ITR 170 WAS ALSO DULY CONSIDERED BY THE HON'BLE SUPREME COURT IN IT S DECISION RENDERED IN THE CASE OF ROLTA INDIA LTD. (SUPRA). IN VIEW OF T HE ABOVE WE REVERSE THE ORDER OF THE CIT(A) AND RESTORE THE ORDER OF THE AO. 3. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 30 TH DAY OF SEPT. 2011. SD/- SD/- (P.M.JAGTAP ) (N.V.VASUDEVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED. 30 TH SEPT.2011 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3 . THE CIT CITY CONCERNED 4. THE CIT(A)- CONCERNED 5. THE D.RF BENCH. (TRUE COPY) BY ORDER ASST. REGISTRAR I TAT MUMBAI BENCHES MUMBAI. ITA NO.5385/MUM/2010(A.Y. 2006-07) 3 VM. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 28/9/11 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 28/9/11 SR.PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7. FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER