Madras High Court
The Commissioner Of Income-Tax vs M/S.Sundaram Fasteners Ltd on 25 January, 2022
TC(A).Nos.725, 726 and 727 of 2009
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 25.01.2022
CORAM:
THE HONOURABLE MR.JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ
Tax Case (Appeal).Nos.725, 726 and 727 of 2009
The Commissioner of Income-Tax
Chennai III ..Appellant
Vs
M/s.Sundaram Fasteners Ltd.,
98A, 7th floor, Dr.Radhakrishnan Salai
Mylapore,
Chennai-600 004 ..Respondent
Prayer: Tax Case Appeals filed against the order of the Income-tax
Appellate Tribunal “C” Bench Chennai dated 05.11.2008 in ITA.Nos.202,
203 and 204/Mds/2008.
For Appellant : Mr.J.Narayanaswamy
For Respondent : Mr.R.Venkata Narayanan
for M/s.Subbaraya Aiyar.
COMMON JUDGMENT
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TC(A).Nos.725, 726 and 727 of 2009
[Judgment of the Court was delivered by R. MAHADEVAN, J.]
These tax case appeals have been filed by the appellant / Revenue,
challenging the order dated 05.11.2008 passed by the Income Tax Appellate
Tribunal, Chennai -C Bench, in I.TA.Nos.202, 203 and 204/Mds/2008,
relating to the assessment years 1999-2000, 2000-01 and 2003-04.
2. By order dated 11.08.2009, this court admitted the aforesaid tax
case appeals on the following substantial questions of law:
“Whether on the facts and in the circumstances of the case,
the Appellate Tribunal was right in holding that interest under
Section 234D was not leviable for the assessment year under
consideration even though the regular assessment under Section
143(3) for the Assessment Year was completed on 31.03.2006 i.e.,
after Section 234D came into force without considering the
Explanation to Section 234D”
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TC(A).Nos.725, 726 and 727 of 2009
3. Today, when the matters were taken up for consideration, the
learned counsel for the appellant / Revenue as well as the respondent /
assessee jointly submitted that the substantial question of law involved in these
appeals has already been considered and decided in favour of the Revenue by
judgment dated 19.03.2019 passed in TCA.Nos.1457 and 1458 of 2008, the
relevant passage of which, is usefully extracted hereunder:
“5.On the Second Question of Levy of Interest under
section 234D of the Act on the excess refund made to the
Assessee along with the Assessment intimation sent to him
under section 143(1) of the Act, the learned senior standing
counsel for the Revenue drew our attention to a judgment of
this court in the case of Commissioner of Income Tax v. Fisher
Sanmar Ltd, (2014) 361 ITR 296 (Mad), wherein, a Division
Bench of this Court held that if the regular assessment of the
Assessee is made after the amendment of provisions of Section
234D of the Act w.e.f. 01.06.2003, then, the provisions of
Section 234D for levy of interest on the excess refund amount
would become applicable, even though the assessment period
may be prior to the said date of amendment.
9. As for the Question of Levy of Interest under Section
234D of the Act, though computation of interest will depend
upon the appeal effect order to be passed, the quantum of net
payment is to be determined accordingly, after allowing
weighted deduction under Section 35 (2AB) of the Act, as
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TC(A).Nos.725, 726 and 727 of 2009
indicated above. The provisions of Section 234D of the Act
have been held applicable for Assessment Year 2003-2004 in
question in terms of the decision of the Co-ordinate
Bench of this Court in the case of Fisher Sanmar Ltd., cited
supra. Accordingly, Questions of Law Nos.3 and 4 are
answered in favour of the Revenue and against the Assessee.”
4. Following the aforesaid judgment, which applies to the facts of
the present case, the substantial question of law is answered in favour of the
Revenue and against the Assessee. Accordingly, these Appeals of the Revenue
are allowed. No costs.
[R.M.D., J.] [M.S.Q., J.]
25.01.2022
Index:Yes/No
Speaking/Non-speaking order
nvsri
To
1.The Commissioner of Income-Tax,
Chennai III.
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TC(A).Nos.725, 726 and 727 of 2009
2.The Income-tax Appellate Tribunal,
“C” Bench Chennai.
3.The Deputy Commissioner of Income Tax,
Company Circle VI(4), Mahatma Gandhi Road,
Chennai-34.
4.The Commissioner of Income-Tax (Appeals) -V,
121, Mahatma Gandhi Road, Chennai-600 034.
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TC(A).Nos.725, 726 and 727 of 2009
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
nvsri
TC(A).Nos.725, 726 and 727 of 2009
25.01.2022
https://www.mhc.tn.gov.in/judis
