ITAT Mumbai ‘A’ Bench
Before R. S. Syal (AM) and
Asha Vijayaraghavan (JM)
ITA No. 4499/Mum/2008
A.Y. : 2000-01. Decided on : 22-7-2009
Counsel for revenue / assessee : Mayank Priyadarshi/Arvind Sonde
S. 115JA, S. 244A — While computing tax liability u/s.115JA
credit for tax paid in foreign country is allowable — Grant of interest
u/s.244A can not be denied on the ground that the TDS certificate was filed in
the course of assessment proceedings and not along with the return of income.
Per R. S. Syal :
Facts :
The assessment of total income of the assessee was
completed u/s.143(3) of the Act on 31-3-2003 assessing the total income at
Rs.97,09,81,536 u/s.115JA. Subsequently, the AO observed that the assessee was
allowed double tax relief while assessing the income u/s.115JA. Notice u/s.154
of the Act was issued and the credit for foreign tax given was denied on the
ground that intention behind S. 115JA is that assessee should pay minimum tax
in India on 30% of book profits and credit for taxes paid in foreign country
could not be allowed against tax liability in India when income was assessed
u/s.115JA of the Act.
In the rectification proceedings the AO did not allow
interest in respect of TDS certificates on the ground that such certificates
were not submitted along with the return of income, but were submitted in the
course of assessment proceedings.
The CIT(A) allowed the appeal filed by the assessee.
Aggrieved, the Revenue preferred an appeal to the Tribunal.
Held :
The Tribunal noted that the income on which tax has been
paid abroad was included in ‘book profit’ for the purpose of S. 115JA. The
Tribunal held that once taxable income is determined either under the normal
provisions or as per S. 115JA, subsequent portion relating to the computation
of tax has to be governed by the normal provisions of the Act. It also held
that there is no provision in the Act debarring granting of credit for tax
paid abroad in case income is computed u/s.115JA. It held the assessee cannot
be denied the set-off of tax relief of Rs.22,88,464 against the tax liability
determined u/s.115JA. It upheld the order of CIT(A) on this ground.
The Tribunal noted that tax was deducted at source at the
right time. It was also deposited into the exchequer in time. The Tribunal
noted that the AO had given credit for TDS, but had denied interest thereon
u/s.244A. The Tribunal held that interest u/s.244A cannot be denied only on
the ground that TDS certificates were not furnished along with the return of
income. It upheld the order of CIT(A) on this ground.
