ACIT, CHENNAI vs. MOHAN BREWERIES & DISTILLERIES LTD., CHENNAI

This appeal by the Revenue isdirected against the order passed by the Ld. Commissioner of Income Tax (Appeals)-8, Chennaidated21.03.2017 in for the assessment year 2001-02 passed u/s.250(6) r.w.s.143(3) of the Act.

There is a delay of 2 days in filing the appeal by the Revenue. The Ld.DCIT has furnished an affidavit before us stating that the delay had occurred due to misplacement of file and due to the time taken for tracing the file. It was therefore pleaded that the short delay in filing the appeal may be condoned. The Ld.AR did not seriously raise any objection against the submission of the Ld.DR. After hearing both sides, though we do not appreciate the lethargic attitude of the Revenue, in the interest of justice, we hereby condone the short delay in filing the appeal by the Revenue and proceed to hear the appeal on merits.

The Revenue has raised several grounds in its appeal, however the crux of the issue is that theRevenue is aggrieved by the order of the Ld.CIT(A) for re-computing the interest payable U/s.234B of the Act.

At the outset the Ld.AR submitted that in the case of the assessee interest U/s.234B of the Act is not leviable because the Ld.AO U/s.154 of the Act has passed order dated 09.04.2007 for the relevant assessment year assessing the income of the assessee as ‘Nil’ after granting the benefit of brought forward losses to the tune of Rs.16,26,61,756/-. Further, the Ld.AR submitted that the Tribunal vide its order 08.02.2008 in ITA

Considering the facts narrated by the Ld.AR, we are of the considered view that the entire issue with respect to levy of interest U/s.234B of the Act, requires to be verified and re- examined in the light of the order of the Tribunal and the order of the Ld.AO U/s.154 of the Act, as pointed out by the Ld.AR herein above. Therefore, we hereby remit back the matter to the file of Ld.AO for de-nova consideration.

In the result, the appeal of the Revenue is allowed for statistical purposes.