Ita v. Punjab State Cooperative Bank [2009-Tiol-21-Hc-P&H-It] Opined That There

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNESDAY, THE 4TH DAY OF DECEMBER 2013/13TH AGRAHAYANA, 1935 ITA.No. 226 of 2012 ----------------------- AGAINST THE ORDER IN ITA 395/COCH/2009 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 29-03-2012 ............ APPELLANT/APPELLANT:- ----------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM, BY ADVS.SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPONDENT:- --------------------------------- M/S. STATE BANK OF TRAVANCORE, HEAD OFFICE, POOJAPPURA, THIRUVANANTHAPURAM - 695 012. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 04-12-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Manjula Chellur, C.J. & A.M. Shaffique, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A. No. 226 OF 2012 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 4[th] day of December, 2013 JUDGMENT Manjula Chellur, C.J. Heard learned Standing Counsel for the Revenue. The entire issue revolves around the issue whether theassessee was entitled for interest on the refund of the amounteven with regard to the quantum or amount that was thesubject of assessment proceedings so far as TDS amounts areconcerned. According to the Department, the time taken bythe assessee for curing defects in the TDS certificates wouldalso come under the category of delay in filing TDS certificates,therefore, the reason contemplated under Section 244A(2) ofthe Income Tax Act is of no assistance to the assessee. Thefacts revealed are as under. 2. The proceedings before the authorities were pertaining to two assessment years, 1989-90 and 1990-91. Sofar as the controversy the revenue submits, on account of ITA No. 226 of 2012 -:2:- defects in some of the TDS certificates filed by the assessee,as explanation was sought from him, assessee took some timeto rectify the defects. When the assessing officer had torecompute the interest payable to the assessee, as per thedirections of appellate tribunal, he did not allow interest underSection 244A of the Act in respect of the period of delay takenby the assessee for correcting the TDS certificates. Thisbecame the challenge before the Commissioner of Income Tax(Appeals) and CIT(Appeals) allowed the appeal. Therefore,the Revenue went before the Tribunal. 3. The Tribunal, at paragraph 7 of the order, hasin detail reproduced the reasoning of the appellate authorityand after hearing the parties, placing reliance on the decisionof Bombay High Court in Commissioner of Income Tax v.Larsen and Toubro Ltd.[(2011) 330 ITR 340(Bom)] anddecision of Punjab & Haryana High Court in the case of-Commissioner of Income Tax v. Punjab State Cooperative Bank [2009-TIOL-21-HC-P&H-IT] opined that there ITA No. 226 of 2012 was no need to interfere with the decisions of the firstappellate authority and rejected the appeal of the revenue.Aggrieved by the same, the revenue is before us. 3. The Tribunal, at paragraph 7 of the order, hasin detail reproduced the reasoning of the appellate authorityand after hearing the parties, placing reliance on the decisionof Bombay High Court in Commissioner of Income Tax v.Larsen and Toubro Ltd.[(2011) 330 ITR 340(Bom)] anddecision of Punjab & Haryana High Court in the case of-Commissioner of Income Tax v. Punjab State Cooperative Bank [2009-TIOL-21-HC-P&H-IT] opined that there ITA No. 226 of 2012 was no need to interfere with the decisions of the firstappellate authority and rejected the appeal of the revenue.Aggrieved by the same, the revenue is before us. 4. As per the decisions referred to above, once thecredit for TDS given, automatically logical consequence isdetermination of interest on the tax credit. Similarly theauthorities below opined that the interest cannot be denied forthe time taken by the appellant assessee to cure the defects inthe TDS certificates as no amount is due from the assessee sofar as TDS certificates and the amount was lying with therevenue. The interest is payable on account of the amount inexcess of what is payable was remaining with the revenueand not for the delay caused by the revenue in determiningthe refund of the amount. In that view of the matter as theexcess amount was remaining with the revenue, interest is tobe paid on the amount to be refunded to the appellantassessee. We find no good reason to differ from the twoopinions of the Division Benches of Bombay and Punjab & ITA No. 226 of 2012 -:4:- Haryana High Courts, therefore we decline to interfere.Accordingly, the appeal is dismissed. Manjula Chellur, Chief Justice. A.M. Shaffique, Judge. ttb/04/12