Itta/115/2001 Of The Commissioner Of Income Tax Hyd v. M/S Southern Plant Aids P Ltd

HON’BLE SRI JUSTICE G. CHANDRAIAH AND HON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A. No. 115 OF 2001 JUDGMENT:- (per Hon’ble Sri Justice Challa Kodanda Ram) This appeal is preferred by the Revenue, against the order dated29.09.2000 in I.T.A. No.220/Hyd/95 passed by the Income Tax AppellateTribunal, Hyderabad Bench “A” (in short “the Tribunal”). The present case ispertaining to the assessment year 1991-1992. 2) This appeal is filed at the instance of the Revenue raising the followingquestion of law under Section 260(A) of the Income Tax Act, 1961 (in short “theAct”). “Whether, on the facts and in the circumstances of the case,the Appellate Tribunal is justified in deleting the interest leviedU/s 234(B) of the Income-Tax Act?” 3) The issue involved in the appeal is with respect to the levy of interest underSection 234B of the Act. The Tribunal, in view of its decision inI.T.A.No.220/Hyd/95, against which I.T.T.A.No.59 of 2001 was filed, which wasallowed setting aside the deletion of the secret commissions paid to theGovernment employees and others had cancelled the interest under Section234B of the Act.As against the orders of the Tribunal in I.T.A.No.220/Hyd/95,I.T.T.A.No.59 of 2001 was filed by the department, in which the question raisedwas ““Whether on the facts and in the circumstances of the case, the AppellateTribunal is justified in holding that the secret commission paid to the Governmentemployees is not deductible under Section 37(1) of the Income Tax Act?” whichwas answered in favour of the assessee. In the above I.T.T.A., it was alsodirected that the bifurcation of the amounts which was in fact paid to theGovernment servants and others have to be made and to the extentrecomputing the secret commission to the Government employees alone isdisallowable. In the light of the said order, the interest that may be leviable,allowable to be paid to the assessee under Section 234 (2B) also requires to berecomputed. 4) In these circumstances, the appeal is disposed of answering the question infavour of the revenue and against the assessee. However, while passing theconsequential order, the authorities are required to recompute the actualinterest payable. 5) Accordingly, the appeal is disposed of. No order as to costs. MiscellaneousPetitions, if any, pending in this appeal shall stand disposed of. ______________________ G. CHANDRAIAH,J Date:03.12.2013. SSV ____________________________ CHALLA KODANDA RAM, J