Income Tax Appellate Tribunal - Mumbai
A.P. Moller, Mumbai vs Department Of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL,
MUMBAI BENCH 'G', MUMBAI
Before Shri P.M. Jagtap, AM and Shri N.V. Vasudevan, JM
I.T.A.Nos. 1575 & 1578/Mum/2010
Assessment Years : 2000-01 & 2003-04
Asst. Director of Income-tax- M/s. A.P. Moller,
(International Taxation)-1(1), Room C/o. Maersk India Pvt. Ltd., Empire
No.117, Scindia House, Ballard Industries Complex, 414, Senapati
Vs.
Estate, N.M. Road, Mumbai 400 038. Bapat Marg, Lower Parel,
Mumbai 400 013.
PAN: AAACA 8917 F
(Appellant) (Respondent)
Appellant by : Shri Jitendra Yadav
Respondent by : Shri Dinesh Chawla
ORDER
PER P.M. JAGTAP, AM :
These two appeals are preferred by the Revenue against two separate orders passed by the learned Commissioner of Income-tax (Appeals)-10, Mumbai, dated 23.12.2009, whereby he cancelled the interest of Rs. 2,66,418/- and Rs. 25,84,180/- charged by the Assessing Officer under section 234D for the assessment years 2000-01 and 2003-04 respectively.
2. We have heard the arguments of both the sides and perused the relevant material on record. It is observed that interest charged by the Assessing Officer under section 234D for both the years under consideration i.e. Assessment Years 2000-01 and 2003-04, was cancelled by the learned CIT(A) by these impugned orders relying on the decision of the Delhi Special Bench of the Tribunal in the case of M/s. Ekta Promoters (P) Ltd., 305 ITR 1 (AT)(Del.), wherein it was held that the provisions of section 234D having been inserted in the statute with effect from 1st June 2003, the same are applicable only from the assessment year 2004-05.
3. At the time of hearing before us the learned counsel for the assessee has relied besides the decision of the Special Bench of the I.T.A.T in the case of M/s. 2 ITA Nos.1575 & 1578/M/2010
M/s. A.P. Moller Ekta Promoters (P) Ltd., on the decision of the Hon'ble Delhi High Court in the case of Director of Income-tax vs. Jacabs Civil Incorporated (330 ITR 578)(Del.) in support of the impugned order of the learned CIT(A) deciding the issue in favour of the assessee. The learned Departmental Representative, on the other hand, has relied on the decision of the Hon'ble Kerala High Court in the case of CIT vs. Kerala Chemicals & Proteins Ltd. (323 ITR 584)(Ker.) in support of the revenue's case on this issue. It is, however, observed that this issue now stands squarely covered by the decision of the Hon'ble Bombay High Court in the case of CIT v. Bajaj Hindustan Ltd., Income-tax Appeal No 198 of 2009 dated 15.04.2009. In the said case, it was held by the Tribunal that interest u/s.234D cannot be levied in respect of refunds granted prior to 1.6.2003 and while challenging the said decision of the Tribunal in an appeal filed before the Hon'ble Bombay High Court, the following question of law was sought to be raised by the Revenue:
"Whether on the facts and circumstances of the case and in law, the I.T.A.T was right in holding that the interest u/s.234D cannot be levied in respect of refunds granted prior to 1.6.2003?"
4. The Hon'ble Bombay High Court vide its judgment dated 15.4.2009 (supra) held that the provisions of section 234D having come on the Statute Book only with effect from 1.6.2003 and the said provisions having no retrospective effect, no substantial question of law arose from the order of the Tribunal as sought to be raised by the revenue in its appeal. The issue involved in the present case thus now stands squarely covered by the decision of the Hon'ble Bombay High Court in the case of CIT v. Bajaj Hindustan Ltd., and respectfully following the same, we uphold the impugned order of the learned CIT(A) for the assessment year 2000-01 cancelling the interest charged by the Assessing Officer u/s.234D as the corresponding refund for the said year was granted on 14.3.2002 i.e. prior to 1.6.2003. The refund for the assessment year 2003-04, however, was admittedly granted to the assessee on 17.3.2004 i.e. after 01.06.2003 and the learned 3 ITA Nos.1575 & 1578/M/2010 M/s. A.P. Moller CIT(A), therefore, was not justified in canceling the interest levied by the Assessing Officer for the assessment year 2003-04. The impugned order of the learned CIT(A) for the assessment year 2003-04 on this issue is accordingly set aside and that of the Assessing Officer is restored.
5. In the result, the appeal of the revenue for the assessment year 2000-01 being ITA No. 1575/Mum/10 is dismissed whereas the appeal for the revenue for the assessment year 2003-04 being ITA No. 1578/Mum/10 is allowed.
Order pronounced in the open court on this 23rd day of February, 2011.
Sd. Sd.
(N.V.Vasudevan) (P.M. Jagtap)
Judicial Member Accountant Member
Mumbai dated the 23rd February, 2011.
kn
Copy to:
1. The Assessee
2. The Revenue
3. The DIT(International Taxation), Mumbai
4. The CIT(A)-10, Mumbai
5. The DR 'G' Bench, Mumbai By order
/True copy/
Asst. Registrar, ITAT, Mumbai