2011 (9) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sed by the CIT (A) - Therefore, the decision of the ITAT in holding that in the facts of the present case, Section 234D is not applicable cannot be faulted.
J.P. DEVADHAR, K.K. TATED, JJ. Mr. Suresh Kumar for the appellant. Mr. Atul K. Jasani for the respondent. JUDGMENT :- (Per J.P. Devadhar, J.) 1. All these appeals relating to assessment years 1992-93 to 1998-99 are admitted on the following question of law :- " Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that interest u/s.234D of the I.T. Act has no retrospective application without appreciating that the provisions of Section 234D are procedural and compensatory in nature and as such can be applied to proceedings of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ttracted. Alternatively, the CIT(A) following the Special Bench decision of the ITAT in the case of ITO V/s. Ekta Promoters (P) Ltd. reported in [(2008) 305 ITR (AT)1] held that since Section 234D was introduced with effect from 1st June, 2003 the said provision would not apply to the facts of the present case where the assessments are for the period prior to 1st June 2003. Challenging the aforesaid order, the revenue filed appeals before the ITAT and by the impugned order dated 28/7/2010, the Tribunal has dismissed the appeals filed by the revenue by following the Special Bench decision in the case of Ekta Promoters (P) Ltd. (supra). Challenging the aforesaid order, the revenue has filed the present appeals. 6. Mr. Suresh Kumar, learned .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... edly refund was not granted to the assessee under Section 143(1) of the Act. In fact, the refund was not granted even under the assessment order passed under Section 143(3) read with Section 147 of the Act, but the same was granted pursuant to the orders passed by the CIT (A). Therefore, the decision of the ITAT in holding that in the facts of the present case, Section 234D is not applicable cannot be faulted. 10. The argument of the Revenue that as per the Explanation to Section 234D, assessments made under Section 147 shall be regarded as regular assessment does not carry the matter any further, because, the provisions of Section 234D would apply only in those cases where refunds were granted under Section 143(1) of the Act and on regul .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X