DCIT (INTERNATIONAL TAXATION), GURGAON vs. M/S. MOL CORPORATION, GURGAON

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ITA 2097/DEL/2016Status: DisposedITAT Delhi02 February 2022AY 2012-134 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the DRP's direction to delete the interest under Section 234B. The DRP had relied on a jurisdictional High Court decision, which the Tribunal found no reason to interfere with.

What were the facts?

The Revenue appealed against the deletion of interest under Section 234B of the Income Tax Act by the Dispute Resolution Panel (DRP). The Assessing Officer (AO) had initially levied this interest.

What were the issues?

Whether interest under Section 234B was correctly deleted by the DRP, following a jurisdictional High Court precedent.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI ‘D’ BENCH,

Before: SHRI N.K. BILLAIYA, & MS. ASTHA CHANDRA

For Appellant: Shri Akshay Uppal Adv
For Respondent: Ms. Anupama Anand, CIT- DR
Hearing: 02.02.2022Pronounced: 02.02.2022

Heard together (2 matters)

ITA No. 2096/DEL/2016
ITA No. 2097/DEL/2016

Read from the judgment's own cause title. This page is filed under one of them.

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:-

1.

The above captioned two separate appeals by the Revenue are preferred against two separate orders of the Assessing Officer dated 19.02.2016 framed under section 144C(13) r.w.s 143(3) the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] in respect of two different assessees, namely Microsoft Regional Sales Corporation and MOL Corporation, pertaining to Assessment Year 2012-13.

2.

The common grievance in both the appeals relates to the directions of the DRP to delete interest u/s 234B of the Act.

3.

Since the underlying facts in issues are common in both these appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.

4.

The ld. DR strongly supported the findings of the Assessing Officer and the ld. counsel for the assessee relied upon the directions of the DRP.

5.

We have carefully perused the orders of the authorities below.

We find that the interest levied u/s 234B of the Act was deleted by the DRP relying upon the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of GE Packaged Power 373 ITR 65 in which the Hon'ble High Court followed the decision in the case of Agence France Press 2015-TII-14-HC-DEL-Intl. From the scrutiny report, on DRP’s directions, the AO has accepted the deletion. But since the matter is subjudice before the Hon'ble Supreme Court, these appeals have been preferred.

6.

Since the DRP has followed the decision of the Hon'ble Jurisdictional High Court, we do not find any error or reason to interfere with the findings of the DRP.

7.

In the result, both the appeals of the Revenue in & 2097/DEL/2016 are dismissed.

The order is pronounced in the open court on 02.02.2022.

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