Income Tax Appellate Tribunal - Chandigarh
Nahar Exports Ltd.,, Ludhiana vs Assessee
Author: G.S.Pannu
Bench: G.S.Pannu
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES 'B' CHANDIGARH
BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER
AND MS SUSHMA CHOWLA, JUDICIAL MEMBER
ITA No. 3/Chd/2010
Assessment Year: 1999-2000
M/s Nahar Exports Ltd., Vs. JCIT, Range-VII.
Now known as Nahar Pol y Ludhiana
Films Ltd.,
Ludhiana
PAN No.AACN5708K
(Appellant) (Respondent)
Appellant By : Shri Navdeep Sharma
Respondent By: Shri S.P. Khutan
ORDER
PER SUSHMA CHOWLA, JM
The appeal by the assessee is against the order of CIT(A)-II, Ludhiana dated 28.10.2009 relating to assessment year 1999-2000 against the order passed under section 143(3) of the I.T. Act.
2. The assessee has raised the following grounds of appeal:-
1) The learned CIT(A) erred in law and on the facts of the case in not following the directions of Hon'ble ITAT given in CO No.19/Chd/2006 in the case of appellant company to decide the matter in view of decision of Hon'ble Supreme Court in the case of CIT Vs. Kwaliaty Biscuits Ltd., which is binding on various High Courts as well as Tribunal.
2) That the CIT(A) erred in law and on facts in deciding the issue by following the decision of Hon'ble 2 Himachal High Court in the case of CIT Vs. United Vanaspati Ltd reported in 218 CTR 524(M.P.) and by ignoring the decision of the Bombay High Court in the case of Snowcem India Ltd reported in 178 Taxman 478 (Bombay).
3) That learned CIT(A) erred in law and on facts in not deleting the interest charged u/s 234-B and 234-C by Assessing Officer on the tax computed u/s 115JA. Directions may be given to delete the interest charged u/s 234-B & 234-C, on tax on book profit computed u/s 115JA of the Act in view of the decision of Hon'ble Supreme Court in the case of Kwality Biscuits Ltd., which was followed by various appellate Tribunals & High Courts.
3. The assessee vide letter dated 22.2.2010 has raised the following Additional ground of appeal :-
The learned Assessing Officer erred in law and on facts in giving directions to charge interest u/s 234-B and 234-C on the tax calculated on Book Profit computed u/s 115 JA of the Act. Directions be given not to charge any interest u/s 234B and 234C on the tax computed on Book Profit u/s 115JA as the provisions of section 234B and 234C are not applicable to the facts of the Appellant company.
4. The Ld. AR for the assessee has filed a declaration under section 158A (1) of the Income Tax Act claiming that an identical question of law regarding charging of interest u/s 234B and 234C of the Act on the tax computed under section 115JA of the Act is pending before the Hon'ble Supreme Court in an appeal filed u/s 261 of the Income Tax Act relating to Assessment Year 1999-2000 in the case of the assessee. The copy of the S LP has also been filed on record. A request was made to admit the declaration u/s 158A of the Act as identical question of law is involved. 3 The assessee had moved the application on 25.3.2010 and the learned DR for the Revenue has not raised any objection to its admission and the appeal is heard.
5. We have heard the rival contentions and perused the records. The issue in the present appeal is against charging of interest u/s 234B & 234C of the Act on the taxes calculated on the book profits computed u/s 115JA of the Act. The C IT(A) rel ying on the ratio laid down by the Hon'ble Jurisdictional High Court in CIT Vs. Upper India Steel Manufacturing and Engineering Company & other M/s Nahar Exports Ltd. [279 ITR 123 (P&H) ] had held that interest u/s 234B & 234 C is to be charged on the income computed u/s 115JA of the Act. We are in conformit y with the order of the CIT(A) in view of the ratio laid down by the Hon'ble Punjab & Haryana High Court in the case of the assessee itself (Supra). Accordingl y, we uphold the order of CIT(A). However, in view of the application moved by the assessee u/s 158 A of the Act, where identical issue is pending before the Hon'ble Apex Court, we direct the Assessing Officer to appl y the ratio propounded by Hon'ble Supreme Court in an appeal filed u/s 261 of the Income Tax Act relating to Assessment Year 1999-2000, once the same is available. The grounds of appeal of the assessee are dismissed.
6. In the result, appeal of the assessee is dismissed.
Order Pronounced in the Open Court on this 9 t h day of Jul y 2010.
Sd/- Sd/-
(G.S.PANNU) (SUSHMA CHOWLA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 9 t h Jul y, 2010
Rkk
Copy to:
4
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR