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Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI
Before: SHRI C.N. PRASAD, HONBLE & SHRI MANOJ KUMAR AGGARWAL, HONBLE
Date of Hearing : 21.11.2017 Date of pronouncement : 23.11.2017 O R D E R PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against the order of the Dispute Resolution Panel–2 (hereinafter in short ‘DRP’), Mumbai, dated 14.12.2015 passed u/s. 144(c)(5) of the Act.
Learned Counsel for the assessee submits that the DRP in its order directed the Assessing Officer to grant credit for TDS, credit for advance
(A.Y: 2012-13) M/s. Orient Overseas Container Line Limited tax and credit for self-assessment tax, after due verification of facts and in accordance with law. Learned Counsel for the assessee further submits that DRP also held that interest u/s. 234B and 234C cannot be imposed on the assessee on the failure of payer to deduct tax at source from the payments made to the assessee, in view of the decision of the Hon'ble Jurisdictional High Court in the case of DIT (International Taxation) v. NGC Network Asia LLC [313 ITR 187]. Learned Counsel for the assessee submits that, Assessing Officer did not comply with the directions of the DRP and passed order u/s.142(3) r.w.s. 143(3)(13) without granting advance tax of ₹.22,59,51,875/-, granted short credit for self-assessment tax and TDS of ₹.7,31,46,145/- and ₹.1,011/- respectively. Learned Counsel for the assessee further submits that, though the DRP has directed not to levy any interest u/s. 234B and 234C the Assessing Officer while passing the consequential order levied interest u/s.234B and 234C. Therefore, he submits that direction may be given to the Assessing Officer to strictly comply with the directions of the DRP by not charging any interest u/s.234B and 234C and to grant credit for TDS as per the provisions of section 199 of the Act and taking into consideration Form 26AS and grant advance tax and self-assessment tax after due verification.
(A.Y: 2012-13) M/s. Orient Overseas Container Line Limited 3. Ld.DR has no serious objection in directing the Assessing Officer to comply with the directions of the DRP. Ld. DR further submits that Assessing Officer may be directed to examine the issue in so far as levy of interest u/s. 234B and 234C in the light of the decision of the Hon'ble Jurisdictional High Court in the case of DIT (International Taxation) v. NGC Network Asia LLC (supra).
We have heard the rival submissions, perused the order of the DRP. We observe from the order of the DRP that specific direction was given not to charge any interest u/s. 234B and 234C and the DRP has given the reason in holding so. Revenue not challenged the order of the DRP in deleting levy of interest u/s. 234B and 234C of the Act. In the circumstances we hold that there is no reason in ignoring the directions of the DRP and once again levying interest u/s. 234B and 234C by the Assessing Officer while giving effect to the order of the DRP. Judicial discipline demands to comply with the orders of the higher authorities. Thus we direct the Assessing Officer not to charge interest u/s.234B and 234C in compliance with the directions of the DRP.
Coming to not granting credit for advance tax, granting short credit for self-assessment tax and TDS, we direct the Assessing Officer to examine the details furnished by the assessee and grant credit for TDS in (A.Y: 2012-13) M/s. Orient Overseas Container Line Limited accordance with the provisions of section 199 of the Act and also taking into consideration Form 26AS and examine the details of advance tax and self-assessment tax paid by the assessee and credit shall be granted for such taxes in accordance with the law. We direct the Assessing Officer accordingly.
In the result, appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open court on the 23rd November, 2017.