TMI Blog2016 (2) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... n preceding para s of this order. Levy of interest u/s 234A, 234B and 234C - HELD THAT:- Restore the issue back to the file of learned assessing officer who would levy interest as per provisions of Section 234 of the Act and give credit for the TDS amount. - I.T.A. No. 4358/Mum/2013 - - - Dated:- 8-2-2016 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Shri Ashwin Kashinath For The Revenue : Dr. P.Daniel ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee company, being ITA No. 4358/Mum/2013, is directed against the order dated 17/01/2013 passed by the learned Commissioner of Income Tax (Appeals)- 40, Mumbai (Hereinafter called the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal and praying for condonation of the delay. In this regard, the said affidavit along with application for condonation filed by the assessee company is brought to our attention by the Ld. Counsel and the relevant extract of the affidavit read as under: 2. The Appellant is a notified person u/s. 3 of the Special Court (Trial of offences Relating to Transactions in Securities) Act ,1992 , hereinafter referred to as Said Act . The appellant come to be notified by custodian on 8.6.1992 on and from which date all the asset of the Appellant got attached in terms of Section 3(4) of the said Act, they can be dealt with by the Custodian only under the directions of Hon ble Special Court. That the Hon ble Court has earlier permitted Custod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tset, ld Counsel for the assessee company mentioned that ground nos. 1,2 and 3 are not pressed . After hearing the ld. Special Counsel for the Revenue, the said grounds are dismissed as not pressed. 6. Ground No. 4 relates to the disallowance of interest expenditure of ₹ 1,57,85,366/-. In this regard the Ld. Counsel of the assessee company submitted that the Tribunal in the assessee company s own case for the assessment year 1995-96 to 1999-2000 , 2003-04 , 2004-05 , 2005-06 and 2007-08 in ITA no. 4015-4019/Mum/2011 vide orders dated 20.11.2013, ITA no. 5203/Mum/ 2013 vide orders dated 18.12.2004 , ITA No. 4629/Mum/2011 dated 06.11.2013 , ITA no. 4020/Mum/2011 dated 20.11.2013 and ITA no. 8478/Mum/2010 dated 20.11.2013 on identical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit u/s 115JB amounting to ₹ 1,77,97,551/ is consequential to our decision in the ground no 4 raised by the assessee company, which we have adjudicated in preceding para s of this order . We order accordingly. 11. Ground No 6 relates to levy of interest u/s 234A, 234B and 234C of the Act. The ld. Counsel for the assessee company submitted that interest u/s 234A , 234B and 234C is mandatory but the interest liability to be calculated after taking into account Tax deducted at source . The Ld. Counsel for the assessee company relied upon decisions of the Tribunal in the case of DCIT v. Smt Rasila S. Mehta in ITA no. 5870/Mum/2011 vide orders dated 21.10.2015, Divine Holding Pvt. Ltd. v. ACIT in ITA no. 560/Mum/2013 dated 21.10.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Special Courts Act, that the Tribunal in the case of the appellant and several other entities had held the view in favour of the appellant , that the Hon ble Bombay High Court in the case of Divine Holdings Pvt. Ltd. and Cascade Holdings Pvt. Ltd. had held that the provisions of sections 234A, 234B and 234C of the Act were mandatory and were applicable to the notified entities also , that the assessee was in the process of filing an appeal against the said order before the Hon ble Supreme Court , that the income earned in the year under consideration was subjected to the provisions of TDS, that the chargeability of section 234A, 234B and 234C of the Act should be after considering the amount of tax deductible at source on the income as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. Counsel for the assessee company submitted that the Tribunal has in the assessee company s own case has adjudicated the issue in ITA no. 5203/Mum/2013 for assessment year 2003-04, vide orders dated 18.12.2014 as under: 9. Ground No. 5 relates to charging of interest u/s 234A and 234B of the Act. In connection with the charge of interest u/s 234B of the Act, Ld. Counsel for the assessee submitted that the assessee being a notified person , there is no charge of interest. It is his further submissions that the receipts of the assessee are subjected to TDS. On the contrary, Special Counsel for the Revenue filed various decisions of the Tribunal in support of charge of interest. The judgment of the jurisdictional High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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