Income Tax Appellate Tribunal - Mumbai
Stup Consultants Pvt. Ltd., Mumbai vs Addl.C.I.T. Rg.3(3), Mumbai on 22 November, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL "E"
BENCH, MUMBAI
BEFORE SHRI R. C. SHARMA, AM &
SHRI SANDEEP GOSAIN, JM
आयकरअपीलसं./ I.T.A. No. 5827/Mum/2012,
(निर्धारणवर्ा / Assessment Year: 2009-10)
Stup Consultants Pvt. Ltd. ACIT RG. 3(3)
1004-05, Raheja Chambers, बिधम/ R No. 606, 6th Floor,
213, Free Press Journal Marg, Vs. Aayakar Bhavan,
Nariman Point, Mumbai. Mumbai - 400020
स्थायीलेखासं ./ जीआइआरसं ./ PAN/GIR No. AABCS1945E
(अपीलाथी/Appellant) : (प्रत्यथी / Respondent)
अपीलाथीकीओरसे/ Appellant by : None
प्रत्यथीकीओरसे/Respondentby : Sh. V. Justin
सुनवाईकीतारीख/
: 04/09/2017
Date of Hearing
घोषणाकीतारीख /
: 22/11/2017
Date of Pronouncement
आदे श / O R D E R
Per Sandeep Gosain, Judicial Member:
The present Appeal filed by the assessee is against the order of Commissioner of Income Tax (Appeals)-7, Mumbai dated 07.05.12 for AY 2009-10 on the grounds mentioned herein below:-
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I.T.A. No. 5827 /Mum/2012 Sup Consultants Pvt. Ltd.
1. The Order u/s 250 dated 7th May, 2012, passed by the Commissioner of Income Tax (Appeals)-7, Mumbai, is bad in law, contrary to the facts of the case and evidence on record, to the extent of Ground No.2.
2. The learned CIT (A) erred in upholding the disallowance of Rs.1,84,25,877 being the interest paid to the Income Tax Department on delays in payment of disputed tax dues, out of which Rs.1,83,05,381 was refunded in the following year and offered for taxation.
3. The appellant craves leave to add/alter/amend or withdraw any or all grounds of this appeal. Further, (1) Necessary Paper Book will be filed at the time of hearing.
2. At the very outset, it is noticed that none has appeared on behalf of assessee in spite of several calls and even no application for adjournment was moved. On the other hand Ld. DR is present in the court and is ready with arguments. Therefore we have decided to proceed with the hearing of the case ex-parte with the assistance of the Ld. DR and the material placed on record.
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I.T.A. No. 5827 /Mum/2012 Sup Consultants Pvt. Ltd.
3. As per the facts of the present case, the assessee is as company engaged in the business of civil enginerring and architecture consultancy. The assessee filed its return of income for AY 2009-10 on 30.09.09 declaring total income of Rs. 23,66,11,352. Subsequently assessee furnished revised return of income thereby disclosing total income of Rs. 23,65,72,137/- .Subsequently, the case was selected for scrutiny and after serving statutory notices and seeking reply of the assessee, order of assessement 143(3) was passed by the AO on 30.11.11 thereby making disallowance under different heads.
Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties partly allowed the appeal of the assessee.
Now before us, the assessee has preferred the appeal by raising the above grounds.
Ground No. 1 to 2.
4. Since both the above grounds raised by the assessee are inter connected and inter related and relates to challenging the order of Ld. CIT(A) in upholding the disallowance of Rs.1,84,25,877 being the interest paid to the Income Tax 4 I.T.A. No. 5827 /Mum/2012 Sup Consultants Pvt. Ltd.
Department on delays in payment of disputed tax dues, therefore we thought it fit to dispose of the same thorough this common order.
5. We have heard Ld. DR and we have also perused the material placed on record as well as the orders passed by revenue authorities.
Before we decide the merits of the case, it is necessary to evaluate the orders passed by Ld. CIT(A). The Ld. CIT(A) has dealt with the above grounds raised by the assessee in para no. 6 of its order. The operative portion of the order of Ld. CIT(A) is contained in para no. 6.3 of its order and the same is reproduced below:-
5.3 I have considered the A.O.'s order as well as the appellant's submission. Having considered both, I do not find any merits in the arguments of the appellant. It has been clearly held by various judicial pronouncements that interest on tax is not an allowable deduction, as the same is part of the tax itself. The payment of tax and interest thereon is a personal liability of the appellant company and hence the same is not an allowable deduction u/s 37 of the Act. Accordingly, after considering the AO's findings as well the case laws relied upon by the appellant, I agree 5 I.T.A. No. 5827 /Mum/2012 Sup Consultants Pvt. Ltd.
with the AO's action that interest on tax is part and parcel of the tax itself and the same is not an allowable deduction. Accordingly, this ground of appeal is dismissed.
6. After having gone through the facts of the present case as well as considering the orders passed by revenue authorities and submissions made by Ld. DR, we find that Ld. CIT(A) has correctly upheld the finding recorded by AO to the effect that interest on tax is not an allowable deduction as the same is part of itself. Ld. CIT(A) while reaching to this conclusion has rightly relied upon the various judicial pronouncements.
Moreover, no new facts or contrary judgments have been brought on record before us in order to controvert or rebut the findings so recorded by Ld CIT (A). Therefore, there are no reasons for us to interfere into or deviate from the findings recorded by the Ld. CIT (A). Hence, we are of the considered view that the findings so recorded by the Ld. CIT (A) are judicious and are well reasoned. Resultantly, these ground raised by the assessee stands dismissed.
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Ground No.3
7. This ground is general in nature, thus requires no specific adjudication.
8. In the net result, the appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 22nd November 2017 Sd/- Sd/-
(R.C. Sharma) (Sandeep Gosain) ले खासदस्य / Accountant Member न्याययकसदस्य / Judicial Member मुंबई Mumbai;यदनां कDated : 22.11.2017 Sr.PS. Dhananjay आदे शकीप्रनिनिनिअग्रे नर्ि/Copy of the Order forwarded to :
1. अपीलाथी/ The Appellant
2. प्रत्यथी/ The Respondent
3. आयकरआयुक्त(अपील) / The CIT(A)
4. आयकरआयुक्त/ CIT- concerned
5. यवभागीयप्रयतयनयध, आयकरअपीलीयअयधकरण, मुंबई/ DR, ITAT, Mumbai
6. गार्ड फाईल / Guard File आदे शधिुसधर/ BY ORDER, उि/सहधयकिंजीकधर .
(Dy./Asstt.Registrar) आयकरअिीिीयअनर्करण, मुंबई/ ITAT, Mumbai