DCIT, Central Circle-10,, Vs Zorawar Vanaspati Ltd

This case involves cross-appeals by Zorawar Vanaspati Ltd. and the DCIT regarding the assessment year 1997-98. The Assessing Officer made a significant addition under Section 68 of the Income Tax Act. The CIT(A) upheld this addition but ordered a recomputation of interest. Both the assessee and the Revenue appealed to the ITAT, and subsequently, the Delhi High Court remanded the matter back to the ITAT for a consolidated hearing.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘A’, NEW DELHI

BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER
AND
SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER

(THROUGH VIDEO CONFERENCING)
ITA No.1949/Del/2001
(for Assessment Year 1997-98)

DCIT
Central Circle-10,New Delhi
(APPELLANT) 

Vs. 

M/s. Zorawar Vanaspati Ltd.,L-25, Cannaught Place,New Delhi
(RESPONDENT)

And
ITA No.1863/Del/2001
(for Assessment Year 1997-98)

M/s. Zorawar Vanaspati Ltd.,L-25, Cannaught Place,New Delhi
(APPELLANT) 

Vs. 

DCIT Central Circle-10,New Delhi
(RESPONDENT)

Assessee by --None--
Revenue by Sh. Bhopal Singh, Sr. DR
Date of hearing: 19/11/2020
Date of Pronouncement: 23/11/2020

ORDER

PER ANIL CHATURVEDI, AM:

The cross appeals filed by the assessee and Revenue are directed against the order dated 27.02.2001 of the Commissioner of Income Tax (A)-VIII, New Delhi relating to Assessment Year 1997-98.

2. The relevant facts as culled from the material on records are as under:

3. Assessee is a company who filed its return of income forA.Y. 1997-98 on 26.03.1998 declaring total income of Rs. NIL. The case was selected for scrutiny and accordingly notices u/s 143(2) and 142(1) were issued and served on assessee. Thereafter,AO vide order dated 24.03.2000 passed u/s 144 of the Actdetermined the total income at Rs.60,39,585/- by making addition of Rs.60,39,585/- u/s 68 of the Act. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) wherein assessee apart from challenging the addition u/s 68 also challenged the levy of interest u/s 234A and 234B of the Act made by the AO on the assessed income.

4. CIT(A) vide order dated 27.02.2001 in Appeal No.32/2000-2001 upheld the addition of Rs.68,39,585/- made by AO but however directed the AO to recompute the interest u/s 234A and 234B of the Act on the returned income.

5. Aggrieved by the order of CIT(A), assessee and Revenue preferred appeal before the ITAT. The grievance of the Revenue was against the direction of CIT(A) in computing the interest u/s 234A and 234B of the Act on returned income. Revenue preferred the appeal before the Co-ordinate Bench of Tribunal. The Coordinate Bench of Tribunal in ITA No.1949/Del/2001 dismissed the appeal of the Revenue against which Revenue preferred an appeal before the Hon’ble Delhi High Court in ITA No.596/2005. The Hon’ble Delhi High Court vide judgment dated 24.07.2009 set aside the order of ITAT and remanded the matter back to ITAT and inter alia directed the ITAT to hear the appeal of Revenue along with appeal of the assessee in ITA No.1949/Del/2001 because one of the issue of challenging of interest u/s 234A & 234B was common in both the appeals.

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