The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that the payment of interest under Section 234B of the Income Tax Act 1961 was not necessary when certain income qualified for deduction.
Keshave Saxena, on behalf of the revenue contended that the issues raised in this appeal had already been decided by the Tribunal in assessee’s own case reported at Linklaters Vs. ITO. It was, therefore, prayed that the same view be followed in the absence of any distinguishing feature on the facts of the case or law as already decided by the Tribunal and those prevailing in the instant case.
Niraj Sheth, appeared for the assessee Linklaters, on the other hand, requested for adjournment giving reasons that some other assessee, on similar issue, had made application to “L” Bench for formation of Special Bench and the assessee was also considering for filing a miscellaneous application against the order of the Tribunal as afore-noted.
The two-member Bench of R.S.Syal, (Accountant Member) and V.Durga Rao, (Judicial Member) noted that no Special Bench had been constituted so far on the issue as had been decided by the Tribunal in assessee’s own case. Further no Miscellaneous application had been filed against the afore-said order. Once the Tribunal had decided a particular issue in assessee’s own case in an earlier year and there was no change in facts or law in the subsequent year, then there was no scope for deviating from the view originally taken by the Tribunal. In view of these facts it was conveyed that the adjournment was not possible.
Keshave Saxena again contended that ground no.1 was decided by the Tribunal against the assessee whereas ground no.2 was in assessee’s favour. This submission was not accepted by the assessee.
As the facts and circumstances of the year in question were similar to those already decided by the tribunal in assessee’s own case and no distinguishing feature had been brought to our notice, respectfully following the view taken by the Tribunal in assessee’s own case in the earlier year the Bench allowed ground no.1 and dismiss ground no.2 in the present appeal.
The only other effective ground was against not charging interest under Section 234B of the Income Tax Act. Both sides were in agreement that there were several orders passed by the Tribunal holding that when a particular income was such on which tax was deductible, then there was no obligation for paying interest under Section 234B of the Income Tax Act. The tribunal, in assessee’s own case in for assessment years 2002-2003 and 2003-2004, had ordered for the deletion of levy of interest under Section 234B of the Income Tax Act. Following the precedent, the Bench dismissed this ground of appeal and partly allowed the appeal filed by the revenue.
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