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Income Tax Appellate Tribunal - Mumbai

Bechtel International Inc. ( Bint), ... vs Department Of Income Tax

           IN THE INCOME TAX APPELLATE TRIBUNAL
                 MUMBAI BENCH "I", MUMBAI

     BEFORE SHRI D.K. AGARWAL, J.M AND SHRI A.L. GEHLOT, A.M.

                       ITA No. 3377/M/2009
                     Assessment Year: 2002-03

Asstt. Director of Income Tax
(International Taxation) -3(2),                              ...Appellant
Scindia House, R.No. 132, 1st Floor,
N.M. Road, Mumbai - 38.
                                 Vs.

Bechtel International Inc.,                                ...Respondent
C/o Pricewaterhouse Coopers P. Ltd.,
252, Veer Savarkar Marg,
Shivaji Park, Dadar West,
Mumbai - 400 028
(PAN - AAACB6149A)

                  Appellant  by      : Mr. Jitendra Yadav
                  Respondent by      : Mr. Arun Prithwani

                               ORDER

PER A.L. GEHLOT, A.M.:

This appeal filed by the Revenue is directed against the order of CIT(A)-XXXIII, Mumbai, passed on 16.02.2009 for the assessment year 2002-03.

2. The ground raised by the revenue in this appeal is in respect of the action of the CIT(A) in directing the AO to grant interest under section 244A on the self assessment tax from the date of payment of self assessment tax to the date of refund of the self assessment tax i.e. upto the date of adjustment of refund i.e. up to 18.07.2007.

3. Briefly the facts of the case are that the assessee was entitled to refund of self-assessment tax paid along with interest is due u/s 244A of the Act. The AO did not grant any interest on the amount of self assessment tax. The CIT(A) following the decision of ITAT, Mumbai bench in the case of CIT Vs. BSES Ltd., 113 TTJ 227(Mum.) directed the AO to grant interest u/s 244A on the self 2 ITA NO. 3377/M/09 M/s Bechtel International Inc. assessment tax from the date of payment of self assessment tax to the date of refund of the self assessment tax i.e. upto the date of adjustment of refund i.e. up to July 18, 2007.

4. At the outset, the learned AR submitted that this issue is squarely covered by the judgment of Hon'ble Delhi High Court in the case of CIT Vs. Sutlej Industries Ltd., [2010] 231 CTR (Del) 80 wherein it was held that the assessee is entitled to interest u/s 244A on the refund of self-assessment tax paid under section 140A.

5. After hearing the learned DR, we find that the CIT(A) followed the decision of ITAT, Mumbai Bench and directed the AO to grant interest u/s 244A and the issue is also covered in favour of the assessee by the judgment of the Hon'ble Delhi High Court in the case of Sutlej Industries Ltd. cited supra. Therefore, we do not find any infirmity in the order of CIT(A) and we uphold the same.

6. In the result, the appeal of the revenue is dismissed.

Pronounced in open Court on this 25 t h day of June, 2010.

                 Sd/-                               Sd/-
             (D.K. AGARWAL)                  (A.L. GEHLOT)
            JUDICIAL MEMBER                ACCOUNTANT MEMBER


Dated: 25 t h June, 2010.
                                         3                       ITA NO. 3377/M/09
                                                       M/s Bechtel International Inc.

Copy to:-
     1)       The Appellant.
     2)       The Respondent.
     3)       The CIT (A) concerned.
     4)       The CIT concerned.
     5)       The Departmental Representative, "I" Bench, I.T.A.T.,
              Mumbai.
                                                       By Order




//true copy//                                          Asst. Registrar,
                                                       I.T.A.T., Mumbai.
Kv

  S.No.     Description                            Date          Intls
  1.        Draft dictated on                      17.6.10                 Sr.P.S./P.S
  2.        Draft placed before author             18.6.10                 Sr.P.S/PS
  3         Draft proposed & pla ced before the                            JM/AM
            second Member
  4         Draft discussed/approved by second                             JM/AM
            Member
  5         Approved Draft comes t o the                                   Sr.P.S./P.S
            Sr.P.S./PS
  6.        Kept for pronouncement on                                      Sr. P.S./P.S.
  7.        File sent to the Bench Clerk                                   Sr.P.S./P.S
  8         Date on which file goe s to the Head
            Clerk
  9         Date of Dispatch of ord er