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Income Tax Appellate Tribunal, MUMBAI BENCH “H”, MUMBAI
Before: SHRI C.N. PRASAD, HONBLE & SHRI RAJESH KUMAR, HONBLE
This appeal is filed by the Revenue against the order of the Ld. Commissioner of the Income-tax -4, Mumbai dated 25.05.2016. The first issue in the appeal of the Revenue is that, the Ld.CIT(A) erred in directing the Assessing Officer to allow interest u/s. 244A on the self-assessment tax paid by the assessee.
2 ITA.No. 5171/MUM/2016 (A.Y: 2006-07) M/s. Bank of India 2. At the outset Ld. Counsel for the assessee submitted that no self- assessment tax was paid by the assessee during the year and there was no finding in the order of Ld. CIT(A) that interest sought to be granted on self-assessment tax and accordingly, the ground raised by the Department needs to be dismissed. Without prejudice to the above, Learned Counsel for the assessee submitted that the Ld. CIT (A) had only directed the AO to examine the working of refund and the interest in the light of the decision of Delhi High Court in the case of India Trade Promotion Organization v. CIT [361 ITR 646] and in accordance with the order of Hon'ble ITAT in the to 5446/Mum/2013. Hence, there should not be any grievance for the Department to come up in appeal.
Ld. Counsel for the assessee further submitted that the issue involved is not granting of interest u/s. 244A of the Act on interest but only the method of adjustment of part refunds granted. According to the assessee the part refunds granted are to be first adjusted against interest refund due and thereafter the balance amount against the tax refund that is due. However, the A.O adjusted the refund first against the tax refund that becomes due leaving the interest component aside.
3 ITA.No. 5171/MUM/2016 (A.Y: 2006-07) M/s. Bank of India 4. Ld. DR vehemently supported the orders of the Assessing Officer. Ld. DR further relied on the decision of the Hon'ble Supreme Court in Civil Appeal No. 4366 of 2012 in the case of CIT v. Gujarat Flouro Chemicals dated 18.09.2013 interest on interest is not allowable.
We have heard the rival submissions, perused the orders of the authorities below. We find from the grounds of appeal filed by the assessee before the Ld.CIT(A) that assessee challenged the order of the Ld. Assessing Officer in not granting interest on interest u/s. 244A of the Act in the process of granting interest and the Ld.CIT(A) disposed of this ground of appeal observing that the issue does not emerge from the order giving effect and since the issue has not been decided against the assessee by the Assessing Officer no administrative direction can be given. He also observed that in assessee’s own case the Tribunal directed the Assessing Officer to examine the working of refund and adjustment of interest in the light of the decision of the Hon'ble Delhi High Court in the case of India Trade Promotion Organization v. CIT [361 ITR 646]. Ld.CIT(A) directed to follow the decision of the Hon'ble ITAT and proceed in the matter accordingly. Therefore, the issue of granting interest u/s. 244A on the self-assessment tax paid by the assessee is not the subject matter before the Ld.CIT(A). What was before the Ld.CIT(A) was non granting of interest on interest u/s. 244A of the Act. We also 4 ITA.No. 5171/MUM/2016 (A.Y: 2006-07) M/s. Bank of India observe that the issue in the case of India Trade Promotion Organization v. CIT (supra) is with reference to interest on refund and its computation. As rightly observed by the Ld.CIT(A) that the Tribunal had already considered the adjustment of interest of refund for the Assessment Years 2002-03, 2003-04 and 2006-07 in ITA.No. 5444, 5445 & 5446/Mum/2013 dated 22.12.2014 and restored the issue to the file of the Assessing Officer to examine the issue in the light of the decision of the Hon'ble Delhi High Court in the case of the India Trade Promotion Organization v. CIT (supra). In the circumstances, we hold that the issue of granting of interest on self-assessment tax does not arise out of the order passed by the lower authorities. However, the issue before the Ld.CIT(A) was with reference to not granting interest on interest u/s. 244A in the process of granting interest, the Ld.CIT(A) had already directed the Assessing Officer to examine the issue in the light of the decision of the Tribunal in assessee’s own case. Therefore, we do not see any grievance to the Department in examine the issue in the light of the decision of the Hon'ble Delhi High Court in the case of the India Trade Promotion Organization v. CIT (supra) and also relevant case laws on the issue. With these observations Ground No.1 is disposed off.
6. Ground No.2 is in respect of computation of book profits u/s. 115JB of the Act.
5 ITA.No. 5171/MUM/2016 (A.Y: 2006-07) M/s. Bank of India 7. Learned Counsel for the assessee submitted that this issue in appeal is already decided by the Tribunal while disposing off the appeal filed against Assessment Order u/s. 143(3) for the Assessment Year 2006-07. Copy of the order is placed on record. We find that the Tribunal in its order dated 28.08.2015 in ITA.No. 3422/Mum/2013 had already considered as to whether the provisions of section 115JB of the Act are applicable to the assessee bank or not and the Tribunal following the order in assessee’s own case for the Assessment Year 2001-02 in ITA.No. 1498/Mum/2011 dated 09.04.2014 held that the provisions of section 115JB of the Act are not applicable to the assessee bank. Thus following the same we hold that the provisions of section 115JB of the Act are not applicable to the assessee bank, thus this ground of appeal is dismissed.
In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on the 06th June, 2018.