2012 (11) TMI 1097

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....abs Civil Incorporated in holding hat the provisions of Section 234D were applicable only from Assessment Year 2004-05 onwards and not in earlier Assessment Years by ignoring that the said decision of the Hon'ble High Court has not been accepted by the department and against which a Special Leave Petition has been filed before the Apex Court. 2. Whether on the fats and circumstances of the case, the CIT (A) has erred in deleting the interest charge u/s 234D in this case by holding that the provisions of section 234D were applicable only from Assessment Year 2004-05 onwards by ignoring that these provisions are applicable on any proceedings completed on or after 1st June, 2003, irrespective of Assessment Year to which it pertains as clarifi....

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....e applicable to all Assessment Years commencing before the first day June, 2003 and the proceedings in respect of such assessment is completed after the said date. 5. The ld. counsel of the assessee could not cogently rebut the submissions but placed reliance upon the following case laws:- i) Asstt. Commissioner of LT (OSD) vs. GTL Ltd. (MA No.746/Mum/2009); ii) CIT vs. Sudhir S. Mehta 139 Taxman 54; and iii) GlaxoSmithkline Asia (P) Ltd. vs. ACIT 97 TTJ (Del) 108. 6. The Ld. DR submitted that all the above case laws were rendered prior to the amendment in Section 234D vide Explanation 2. Hence, he pleaded that Ld. CIT (A)'s order needs to be reversed. The Ld. DR relied upon the following case laws:- i) CIT vs. Kamla S. Rani 189 ITR 3....

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....Explanation 2.-For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in respect of such assessment year is completed after the said date." 8. A reading of the above Section clearly indicates that Explanation 2 was added by Finance Act, 2012 with retrospective effect from 01.06.2003. By that amendment, it was clearly brought on the statute that the Section shall also apply to an Assessment Year commencing before the first date of June, 2003 if the proceedings in respect of such Assessment Year is completed after the said date. In this regard, we find that the case laws relied upon by the Ld. DR are germane. In....