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Dy. Commissioner of Income Tax, Circle 11 (4) , Bangalore Versus M/s. IBM India Pvt. Ltd.

2015 (9) TMI 995 - ITAT BANGALORE

Rectification of mistake - interest u/s. 220(2) and 234D of the Act had not been charged - CIT (Appeals) deleted the charge of interest u/s.220(2) - Held that:- CIT (Appeals) has cancelled the charging of interest by placing reliance on the decisions which are not germane to the issue under consideration. We are also of the view that the decision of the learned CIT (Appeals) appears to have been based on facts which have not been placed in the proper perspective before him. It is also seen that .....

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for statistical purposes - I.T.A. No.1391/Bang/2014 - Dated:- 14-8-2015 - SHRI VIJAY PAL RAO AND SHRI JASON P. BOAZ, JJ. For The Appellant : Shri Farhat Hussain Qureshi, CIT (D. R) For The Respondent : Shri Ajay Rotti, C. A. Per Shri Jason P. Boaz : This appeal by Revenue is directed against the order of the Commissioner of Income Tax (Appeals) - IV, Bangalore dt.22.9.2014 for Assessment Year 2007-08. 2. The facts of the case, briefly, are as under :- 2.1 The assessment for A.Y. 2007-08 in the .....

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r Section 143(3) rws 144C was passed on 15.2.2011. It is seen that in this order interest under Section 234B and interest under Section 220 on delay of payment of ₹ 12,77,77,868 has been not levied. Also there is a mistake in calculation of interest under Section 234D. As these are the mistakes apparent from records, the same are rectified after considering assessee's submission filed on 8.7.2011. Assessee's argument that interest under Section 220(2) for the period of one month on .....

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under Section 154 of the Act for A.Y. 2007- 08, the assessee preferred an appeal before the CIT (Appeals) - IV, Bangalore. From the grounds of appeal before the learned CIT (Appeals), it is seen that the assessee has raised the following issues before the CIT (Appeals) with regard to the charging of interest u/s.220(2) of the Act. (a) The Assessing Officer erred in charging interest u/s.220(2) of the Act amounting to ₹ 12,77,779 for a period prior to the date of regular assessment order un .....

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T (Appeals) disposed off the assessee's appeal vide order dt.22.9.2014 allowing the assessee's appeal and cancelling the charge of interest u/s.220(2) of the Act. 3. Revenue being aggrieved by the order of the CIT (Appeals) - IV, Bangalore dt.27.9.2011 for A.Y. 2007-08, has preferred this appeal before the Tribunal raising the following grounds :- 1. The order of the learned CIT (Appeals) is opposed to law and the facts and circumstances of the case. 2. The CIT (Appeals) erred in deletin .....

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. 3. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the CIT (Appeals) be reversed and that of the Assessing Officer be restored. 4. The appellant craves leave to add, to alter, amend or delete any of the grounds that may be urged at the time of hearing of the appeal. 4. The Grounds raised at S.Nos. 1. 3 & 4 are general in nature and therefore no adjudication is called for thereon. 5. Ground No.2 : Charge of Interest u/s.220(2) .....

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nn 271(Mad) which are distinguishable and not applicable to the facts of the case on hand and the issue involved. The learned Departmental Representative assailed the order of the CIT (Appeals) arguing that the impugned order was wrong on facts, in that the interest u/s.220(2) of the Act has been charged only after the order of assessment under Section 143(3) of the Act was passed and submitted that the various judicial pronouncements relied on by the CIT (Appeals) in the impugned order are eith .....

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Cotton Spinning and Weaving Mills Ltd. V ITO in 211 ITR 610 (Cal) (ii) ABB Ltd. V Addl. CIT in ITA No.437 &439/Bang/2012 (ITAT, Bangalore). (iii) Kapurchand Shirmal V CIT (131 ITR 0451)(SC) 5.3.1 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions relied on by the learned CIT (Appeals) in the impugned order. At the outset, we are constrained to observe that the order of the learned CIT (Appeals) is not a speaking .....

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on hand, i. E. the charging of interest under Section 220(2) of the Act. 5.3.2 The learned CIT (Appeals) has relied on the following decisions to conclude that interest u/s.220(2) of the Act is not chargeable in the case on hand :- (i) CIT V Gujarat Electricity Board (260 ITR 84) (SC) (ii) CIT V Manjit Singh Sachdeva (310 ITR 357) (SC) (iii)Spaco Carburattors India Ltd. V Raj Kumar, DCIT reported in 284 ITR 611 (Bom) (iv)Tamil Nadu Magnesite V CIT reported in 196 Taxmann 271 (Mad) In all the abo .....

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ase of Manjit Singh Sachdeva (supra), it was held that no action under Section 154 of the Act could be initiated once assessment proceedings have commenced by issue of notice under Section 143(2) of the Act. The other two decisions cited are also on the same issue that intimation under Section 143(1)(a) of the Act and its rectification does not survive once regular assessment proceedings under Section 143(2) are commenced. 5.3.3 In the case on hand, however, the facts are different. It is clear .....

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r view, totally misplaced. 5.3.4 We also find that in the grounds of appeal raised by the assessee before the learned CIT (Appeals), the facts of the case have been wrongly stated. For instance, the assessee raised the ground that the Assessing Officer was wrong in charging interest u/s.220(2) of the Act for a period prior to the date of regular assessment order under Section 143(3) of the Act and that there cannot be double charge of interest under Section 220(2) and 234B of the Act for the sam .....

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