M/S. SASKEN COMMUNICATION vs. THE INCOME TAX OFFICER

The appeal is filed raising the question of law for consideration, which reads as follows: "Whether on the facts and in the circumstances of the case, the Honourable ITAT was right in law in upholding the action of the Learned Respondent in levying interest under Section 201(1A) of the IT Act?"

Sri. S.Sharath, learned counsel appearing for the appellant would submit that the above stated question of law is answered by the Hon'ble Apex Court in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE (P.) LTD. v. COMMISSIONER OF INCOME-TAX reported in (2021) 432 ITR 471 (SC) and the said question is answered in favour of the Assessee. In view of the same, learned counsel prays for allowing the appeal.

Learned counsel Sri. Ravi Raj.Y.V., along with learned counsel Sri. Dilip.M., for the respondent-Revenue is not in a position to dispute the contention of learned counsel for the appellant.

Taking note of the above, in terms of the order passed by the Hon'ble Apex Court in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE (P.) LTD. (supra), we answer the above question of law in favour of the Assessee and against the Revenue.

Learned counsel for the Revenue would submit that the Revenue has preferred Review Petition before the Hon'ble Apex Court in R.P.Nos.1422-1497/2021 praying to review the order passed in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE (P.) LTD. (supra) and prays for liberty to file review in case the Revenue succeeds before the Hon'ble Apex Court. On the other hand, learned counsel appearing for the appellant would place reliance on the decision in the case of COMMISSIONER OF INCOME-TAX v. GRACEMAC

Learned counsel for the Revenue is seeking liberty to file review petition depending upon the outcome of the review pending before the Hon'ble Apex Court, apparently because of the observation made by the Hon'ble Apex Court at Paragraph Nos.6 and 7 in GRACEMAC CORPORATION case (supra).

We have gone through the above decision and deem it appropriate to grant liberty to the respondent- Revenue to file review petition based on the outcome of the review pending before the Hon'ble Apex Court and it is for the respondent-Revenue to make out a case for review.