Muthoot Finance Corporation, Trivandrum v. DCIT, Trivandrum

MA 178/COCH/2009 | 2005-2006
Pronouncement Date: 20-08-2010

Appeal Details

RSA Number 17821924 RSA 2009
Assessee PAN AACCM1453E
Bench Cochin
Appeal Number MA 178/COCH/2009
Duration Of Justice 8 month(s) 3 day(s)
Appellant Muthoot Finance Corporation, Trivandrum
Respondent DCIT, Trivandrum
Appeal Type Miscellaneous Application
Pronouncement Date 20-08-2010
Appeal Filed By Assessee
Bench Allotted DB
Tribunal Order Date 20-08-2010
Date Of Final Hearing 20-08-2010
Next Hearing Date 20-08-2010
Assessment Year 2005-2006
Appeal Filed On 17-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH COCHIN BEFORE SHRI N.VIJAYAKUMARAN & SHRI SANJAY ARORA M.P.NO.178/COCH/2009 (ARISING OUT OF I.T.A.NO.784/COCH/2008 ASSESSMENT YEAR:2005-06 M/S. MUTHOOT FINANCE CORPORATION LTD. TRIVANDRUM. PA NO.AACCM 1453 E VS. THE DY. COMMISSIONER OF INCOME-TAX CIRCLE-1(1) TRIVANDRUM. (APPELLANT) ( RESPONDENT ) APPELLANT BY SHRI R.SRINIVASAN C.A. RESPONDENT BY SHRI T.J.VINCENT JR.DR O R D E R PER N.VIJAYAKUMARAN J.M: THIS IS A MISCELLANEOUS PETITION FILED BY THE ASSE SSEE VIZ. M/S. MUTHOOT FINANCE CORPORATION LTD. 2. IN THE MISCELLANEOUS PETITION AT PARA.3 IT HAS BEE N STATED THAT THE HONBLE BENCH AT PARA 9 OF THEIR ORDER HAS COME TO THE CONCLUSION THAT AVERAGE RATE OF INTERES T ON THE BANK LOAN AVAILED BY THE ASSESSEE WAS 8% IN THE PREVIOUS YEAR WHICH IS NOT CORRECT. THE AVERAGE RATE OF INTEREST WILL BE MORE THAN 10%. IN FACT THE FINDING OF THE OFFICE THAT RATE OF INTEREST AT 8% HAS BEEN REBUTTED BY THE ASSESSEE COMPANY. THEREF ORE THE ASSESSING OFFICERS FINDING THAT THE RATE OF INTERE ST PAID BY THE MP NO. 178/COCH/2009 M/S. MUTHOOT FINANCE CORPORATION LTD. 2 COMPANY ON THE LOAN AVAILED FROM BANK AT 8% IS NOT CORRECT. THE ASSESSING OFFICER HAS ALSO NOT CALLED FOR ANY E XPLANATION AS TO HOW PAYMENT OF 10% INTEREST TO DIRECTORS IS JUST IFIED. IT IS THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THIS APPARENT MISTAKE WHICH REQUIRES RECTIFICATION. 3. WE HEARD SHRI R. SRINIVASAN CHARTERED ACCOUNTAN T FOR THE ASSESSEE AND SHRI T.J. VINCENT JR. D.R. FOR TH E REVENUE. WE HAVE CAREFULLY CONSIDERED THEIR SUBMISSIONS AND PERUSED THE IMPUGNED ORDER OF THE TRIBUNAL DATED 28-10-20 09 IN ITA NO.784/COCH/2008 FOR THE ASSESSMENT YEAR 2005-0 6. WE ARE UNABLE TO ACCEPT THAT THERE IS AN ERROR APPA RENT ON RECORD. THIS WILL BE CLARIFIED BY THE OBSERVATION OF THE TRIBUNAL IN THE NEXT PARAGRAPH I.E. PARA.10 ITSELF WHEREIN THE TRIBUNAL HAS FOUND ON FACTS THAT THERE IS NO DISPUTE REGARDING THE OTHER FACT THAT THE ASSESSEE COMPANY HAS PAID INTEREST TO ITS DIRECTORS FOR LOANS AVAILED FROM TH EM AT 10%. THIS BEING THE FACTUAL POSITION WE ARE UNABLE TO A CCEPT THE ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE THAT T HERE IS A MISTAKE IN COMING TO THE CONCLUSION REGARDING THE A VERAGE RATE OF INTEREST. THERE IS NO MISTAKE APPARENT ON RECORD WHICH REQUIRES RECTIFICATION. IF WE ACCEPT THE CON TENTION OF THE PETITIONER PUT FORTH AT THIS STAGE WE ARE OF T HE CONSIDERED OPINION THAT IT WILL AMOUNT TO REVIEW OF ITS ORDER MP NO. 178/COCH/2009 M/S. MUTHOOT FINANCE CORPORATION LTD. 3 WHICH IS NOT PERMISSIBLE IN VIEW OF THE DECISION OF THE APEX COURT IN THE CASE OF SAURASHTRA KUTCH STOCK EXCHANGE LTD. 305 ITR 227 AND THAT OF THE HONBLE MADRAS HIGH COURT IN THE CASE EXPRESS NEWSPAPERS LTD. VS. DY. CIT REPORT ED IN 320 ITR 12. THE TRIBUNAL IS EMPOWERED ONLY TO CORRECT THE MISTAKE APPARENT ON RECORD. IF THE ARGUMENT OF TH E LD. COUNSEL IS TO BE ACCEPTED THEN IT WILL AMOUNT TO R EVIEW OF ITS EARLIER ORDER TO WHICH THE TRIBUNAL IS NOT EMPOWER ED WITH UNDER THE STATUTE OF INCOME-TAX. HENCE THIS MISC ELLANEOUS PETITION IS DISMISSED. 4. IN THE RESULT MISCELLANEOUS PETITION IS DISMISS ED. SD/- SD/- (SANJAY ARORA) (N.VIJAYKUMARAN) ACCOUNTANT MEMBER JUDICIAL M EMBER ERNAKULAM DATED THE 20 TH AUGUST 2010. PM. COPY FORWARDED TO: 1. M/S. MUTHOOT FINANCE CORPORATION LTD. TRIVANDRUM. 2. THE DY. CIT CIRCLE-1(1) TRIVANDRUM. 3. CIT(A)-I TRIVANDRUM. 4. CIT TRIVANDRUM./5. D.R.