The Commissioner Of Income Tax v. M/S. Banc Of America Securities

(-1-) hvn IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 208 OF 2009 INCOME TAX APPEAL NO. 208 OF 2009 The Commissioner of Income Tax ... Appellant The Commissioner of Income Tax ... Appellant Versus M/s. Banc of America Securities (I) Pvt. Ltd. .. Respondent Mr. Vimal Gupta for the Appellant. Mr. P.J. Pardiwala,Sr. Counsel with Mrs.V.B. Patel for the Respondent. CORAM: F.I. CORAM: F.I.REBELLO&R.S.MOHITE, JJ.DATED: APRIL 02, 2009 R.S.MOHITE, JJ. DATED: APRIL 02, 2009 P.C.: P.C.: . The Revenue is in appeal on the following question : "Whether on the facts and in the circumstances of the case the Tribunal was right in law in confirming the order of the Ld. CIT(A) in deleting the interest u/s. 234C, without appreciating the fact that the assessee was liable to pay advance tax on the interest earned on the F.D.?" . A few facts may be set out : . The assessee was incorporated on 17.4.1995. R.B.I. granted registration certificate on (-2-) 11.9.2001 permitting the assessee as N.B.F.C. By letter dated 1.11.2001 it was allowed to act as primary dealer. It commenced his business thereafter and filed return for assessment year 2002/2003. . The contention of the Revenue is that the assessee ought to have paid advance tax as on 15.6.2001. The learned tribunal referred to and reproduced the order of C.I.T. (A) and affirmed the same and consequently dismissed appeal. . In our opinion, the argument advanced on behalf of the Revenue is untenable. The fact is that the assessee was registered as N.B.F.C. only on 11.9.2001. It was allowed to commence the business as a primary dealer by letter dated 1.11.2001. The question of paying advance tax, therefore, on 15.6.2001 would never arise and it was impossible of being performed on that date. Considering the above, in our opinion, no error could be found in the order of C.I.T. and I.T.A.T. and consequently appeal dismissed. (R.S.MOHITE, J.) (F.I.REBELLO, J.) (R.S.MOHITE, J.) (F.I.REBELLO, J.)