2013 (4) TMI 919 - AT - Income Tax

Tribunal decisions on tax appeal outcomes and interest payments under various sections

The Tribunal allowed the assessee's appeal for the assessment years 2006-07 and 2007-08, stating that provisions of section 115JB were not applicable. The ... - Issues Involved:1. Applicability of provisions of section 115JA/115JB to the assessee.2. Grant of interest u/s 244A of the Act.3. Levy of interest u/s 234D.Summary:1. Applicability of Provisions of Section 115JA/115JB:The first issue pertains to the applicability of provisions of section 115JA and 115JB. For the assessment years 1997-98, 1998-99, and 2002-03, the Tribunal dismissed the assessee's ground of appeal as it was not raised before the CIT(A) nor in the original grounds of appeal before the Tribunal. The Tribunal stated, 'The issue was not raised by the assessee by following proper procedure by raising the same as additional ground of appeal before the Tribunal.'For the assessment years 2006-07 and 2007-08, the issue was raised before the CIT(A) and decided in favor of the assessee. The Tribunal referenced the Hyderabad Bench's decision in the case of State Bank of Hyderabad Vs. DCIT, which held that 'the provisions of section 115JB will not be applicable to the assessee and set aside the assessment made under section 115JB on the assessee bank.' Consequently, the Tribunal allowed the assessee's appeal, stating, 'Respectfully following the decision of the Hyderabad Bench of the Tribunal, we set aside the order of the CIT(A) on this issue and allow this ground of appeal of the assessee.'2. Grant of Interest u/s 244A:The second issue involves the grant of interest u/s 244A. The Tribunal, referencing its earlier decision in ITA No.1250/Mds/2008, noted that 'there has been delay in making refund to the assessee by the Department. As such the assessee is entitled to interest on delayed payment of refund as provided under section 244A.' The Tribunal remitted the case back to the Assessing Officer for the calculation of interest on interest, if any, arising out of delay in payment of interest, in accordance with the method set out by the Hon'ble Supreme Court in the case of Sandvik Asia Ltd.3. Levy of Interest u/s 234D:In ITA No.1756/Mds/2011 for the assessment year 2002-03, the Revenue raised an additional ground regarding the levy of interest u/s 234D. The Tribunal referenced its earlier decision in ITA No.248/Mds/2010, where it was held that 'interest under section 234D is leviable on or after 2.6.2003 irrespective of the assessment year.' The Tribunal allowed this ground of appeal, stating, 'Respectfully following the decision of the Hon'ble jurisdictional High Court in the case of Infrastructure Development Finance Co. Ltd., we reverse the findings of the CIT(A) on this issue and allow the ground of appeal of the Revenue.'Conclusion:The appeals of the Revenue were partly allowed for statistical purposes, with specific directions provided for each issue. The order was pronounced in the open court on April 2, 2013, at Chennai.