Madras High Court
M/S.Brakes India Limited vs The Deputy Commissioner Of Income ... on 5 February, 2021
T.C.A.No.53 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 05.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.No.53 of 2013
M/s.Brakes India Limited,
Padi, Chennai – 600 050. ... Appellant
Vs.
The Deputy Commissioner of Income Tax (LTU),
1775, Jawaharlal Nehru Inner Ring Road,
Anna Nagar Western Extension,
Chennai – 600 101. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
Bench "A" Chennai, dated 29.06.2012 in I.T.A.No.758/Mds/2012.
For Appellant : Mr.R.Venkatanarayanan
For Respondent : Mr.T.Ravikumar,
Senior Standing Counsel
JUDGMENT
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T.C.A.No.53 of 2013
(Judgment was delivered by M.DURAISWAMY, J.)
The above appeal arises against the order dated 29.06.2012 passed
by the Income Tax Appellate Tribunal “A” Bench in I.T.A.No.758/Mds/
2012 in respect of the assessment year 2002-03.
2.It is the case of the appellant that they are engaged in the
business of manufacture of brake assemblies and automobile
components. For the assessment year 2003-04 under appeal assessee filed
return of income on 31.10.2002 declaring a total income of
Rs.22,01,34,205/-. The scrutiny assessment under Section 143(3) was
completed on 28.02.2005 determining the total income at
Rs.24,22,39,334/- after making certain disallowances. Pursuant to the
appellate order passed by the CIT (Appeals) – III, the assessment was
subsequently revised on 15.02.2006 giving effect to the order of CIT
(Appeals), as a result of which, the total income was revised to
Rs.22,54,78,112/-. Subsequently, the assessment order passed under
Section 143(3) on 28.02.2005 was set aside by the CIT by order dated
30.03.2007 to examine the payment of Rs.3,97,55,441/- to M/s.Wescare
India Private Limited vis-a-vis the units of electricity supplied to the
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T.C.A.No.53 of 2013
assessee. In consequence of the direction given by the CIT, the Assessing
Officer passed an order under Section 143(3) read with Section 263 on
18.12.2007, determining the total income at Rs.26,52,33,550/-. The
assessee preferred an appeal against the said order before the CIT
(Appeals) and the Appellate Authority, by order dated 24.04.2008, partly
allowed the appeal. While giving effect to the order of CIT (Appeals), the
order dated 18.12.2007 was revised vide order dated 30.03.2009 and the
Assessing Officer granted interest under Section 244A at Rs.11,46,600/-
as against Rs.16,84,867/-. While Computing the refund under Section
244A, the Assessing Officer has omitted to consider that as per
provisions of Section 244A, where refund of any amount arises to the
appellant out of advance tax/TDS/tax paid, the appellant is entitled to
interest from the 1st day of April of the assessment year/date of payment
to the date on which the refund is actually granted. The actual interest
due to the appellant calculated strictly on the above basis amounts to
Rs.16,84,867/-. Aggrieved by the said order granting lesser interest, the
assessee preferred an appeal to the CIT (Appeals) and the Appellate
Authority by order dated 21.02.2012 rejected the contentions of the
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T.C.A.No.53 of 2013
assessee holding that the interest under Section 244A is to be granted
only if there is inordinate delay in the granting of refund. Aggrieved by
the order of the CIT (Appeals), the assessee preferred an appeal to the
Income Tax Appellate Tribunal and the Tribunal, by its order dated
29.06.2012, confirmed the order of the CIT (Appeals) and dismissed the
appeal. Aggrieved over the same, the assessee has filed the above appeal.
3.The above appeal was admitted on the following substantial
questions of law:
“1)Whether on the facts and circumstances of the
case, the Tribunal was right in holding that the appellant is
not entitled to the differential claim of interest u/s 244A on
refund as claimed by it?
2)Whether the Tribunal was right in law in not
following the judgment of the Hon'ble Supreme Court in the
case of CIT Vs. H.E.G. Ltd. (324 ITR 331) holding that
interest component will partake of the character of the
amount due u/s 244A of the Act which becomes an integral
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T.C.A.No.53 of 2013
part of the principal amount and assessee would be entitled
to interest after the said amount becomes due and payable?”
4.Heard Mr.R.Venkatanarayanan, learned counsel for the appellant
and Mr.T.Ravikumar, learned senior standing counsel for the respondent.
5.The learned counsel appearing for the appellant submitted that in
similar circumstances, in respect of the same assessee, the Hon'ble
Division Bench of this Court, by its judgment dated 20.03.2019 in
T.C.A.Nos.813, 814, 816 to 819 of 2009, following the judgment of the
Hon'ble Supreme Court reported in (2013) 358 ITR 291 (SC) [CIT Vs.
Gujarat Fluoro Chemicals] remitted the matter back to the Tribunal to
decide the appeals afresh in accordance with law.
6.The learned counsel appearing for the appellant submitted that
the present appeal may also be remitted back to the Tribunal for fresh
consideration.
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T.C.A.No.53 of 2013
7.Mr.T.Ravikumar, learned Senior Standing Counsel for the
Department also submitted that in view of the judgment of the Hon'ble
Division Bench of this Court dated 20.03.2019, the matter may be
remitted back to the Tribunal for fresh consideration.
8.Having regard to the submissions made by the learned counsel
on either side, following the judgment made by the Hon'ble Division
Bench of this Court in T.C.A.Nos.813, 814, 816 to 819 of 2009, dated
20.03.2019, the matter is remitted back to the Income Tax Appellate
Tribunal to decide the matter afresh in accordance with law.
9.With these observations, the Tax Case Appeal is disposed of. No
costs.
[M.D., J.] [T.V.T.S., J.]
Index : Yes/No 05.02.2021
Internet : Yes
va
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T.C.A.No.53 of 2013
To
The Income Tax Appellate Tribunal, Madras, Bench "A"
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T.C.A.No.53 of 2013
M.DURAISWAMY, J.
and
T.V.THAMILSELVI, J.
va
T.C.A.No.53 of 2013
05.02.2021
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