2020 (7) TMI 784 - AT - Income Tax

Charging of interest u/s. 234B - assessee submitted that the assessee since incurred huge losses in earlier years thus there is no liability to pay advance tax and therefore it is not liable to pay interest u/s. 234B - HELD THAT - As decided in own case for the A.Y. 2009-10 decided the issue in favour of the assessee.

Summary

Issues:
1. Non-adjudication of grounds related to levy of interest u/s. 234B of the Act in earlier appeals.

Analysis:
The judgment by the Appellate Tribunal ITAT Mumbai involved the recall of appeals related to ITA.Nos. 1044, 1045/Mum/2018 and ITA.No. 6970/Mum/2017 for the A.Ys. 2012-13 to 2014-15 due to non-adjudication of grounds concerning the levy of interest u/s. 234B of the Act in the earlier proceedings. The primary issue revolved around whether the provisions of section 234B were applicable in the appellant's case for the respective assessment years. The appellant contended that due to significant losses incurred in previous years, there was no obligation to pay advance tax, thus absolving them from the liability of interest under section 234B.

The appellant's counsel argued that similar issues had been favorably decided in the appellant's own case for A.Ys. 2009-10 and 2010-11, citing precedents such as DCIT v. IDBI Federal Life Insurance Company Limited and HDFC Standard Life Insurance Company Limited cases. The Departmental Representative (DR) supported the lower authorities' orders. The Tribunal examined the arguments, past decisions, and relevant provisions. Referring to a previous order for A.Y. 2009-10 in the appellant's case, the Tribunal observed that similar issues had been resolved in favor of the assessee. The Tribunal reviewed various grounds raised by the appellant, aligning them with previous decisions in cases involving ICICI Prudential Insurance and HDFC Life Insurance, ultimately allowing the appeals in favor of the assessee based on the precedent set in the A.Y. 2009-10 order.

Additionally, the Tribunal acknowledged the delay in pronouncing the judgment due to the COVID-19 pandemic, citing Rule 34(5) of Income Tax Appellate Tribunal Rules, 1963, and the Bombay High Court's orders extending time-bound periods during the lockdown. The judgment was pronounced on 31.07.2020, complying with Rule 34(4) of ITAT Rules, following the precedents and legal provisions discussed during the proceedings.