Relief to Microsoft Regional Sales Corporation: ITAT upholds DRP’s Order deleting Interest payable by Taxpayer under Income Tax Act

In a major relief to Microsoft Regional Sales Corporation and MOL Corporation, the Delhi Bench of Income Tax Appellate Tribunal (ITAT) upheld DRP’s Order deleting Interest payable by Taxpayer under Income Tax Act.

The Revenue are preferred against two separate orders of the Assessing Officer framed under section 144C(13) r.w.s 143(3) the Income-tax Act, 1961 in respect of two different assessees, namely Microsoft Regional Sales Corporation and MOL Corporation, pertaining to Assessment Year 2012-13.

The common grievance in both the appeals relates to the directions of the DRP to delete interest u/s 234B of the Act.

Since the underlying facts in issues are common in both these appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.

The department has strongly supported the findings of the Assessing Officer and the ld. counsel for the assessee relied upon the directions of the DRP .

The coram of  Judicial Member, Astha Chandra and Accountant Member, N.K.Billaiya has held that the interest levied u/s 234B of the Act was deleted by the DRP relying upon the decision of the Hon’ble Jurisdictional High Court of Delhi in the case of GE Packaged Power 373 ITR 65 in which the High Court followed the decision in the case of Agence France Press. From the scrutiny report, on DRP’s directions, the AO has accepted the deletion. But since the matter is subjudice before the Supreme Court, these appeals have been preferred.

“Since the DRP has followed the decision of the Hon’ble Jurisdictional High Court, we do not find any error or reason to interfere with the findings of the DRP,” the ITAT said.

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