IN THE HIGH COURT OF DELHI AT NEW DELHI
3.
ITA 931/2010
.
COMMISSIONER OF
INCOME TAX ..... Appellant
Through Ms. Prem Lata Bansal, Advocate
versus
.
ASIAN TECHNOCRATES P.LTD. ..... Respondent
Through Ms. Poonam Ahiya with
Mr. Shashank Agarwal, Advocates
AND
4.
ITA 932/2010
.
COMMISSIONER OF INCOME
TAX DELHI I ..... Appellant
Through Ms. Prem Lata Bansal, Advocate
.
versus
.
ASIAN TECHNOCRATES P.LTD. ..... Respondent
Through Ms. Poonam Ahiya with
Mr. Shashank Agarwal, Advocates
.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE MANMOHAN
.
O R D E R
26.07.2010
.
ITA 931-932/2010 Page 1
of 3
CM 12545/2010 in ITA 932/2010
Allowed, subject to all just exceptions.
CM 12544/2010 in ITA 931/2010 and CM 12546/2010 in ITA 932/2010
.
These are the application for condonation of delay in refiling of appeals.
Having heard Ms. Prem Lata Bansal, learned counsel for Revenue and Ms.
Poonam Ahiya, learned counsel for assessee and regard being had to the facts and
circumstances, we are of the considered opinion that there is
sufficient cause warranting condonation of delay and accordingly, delay
in refiling the appeals stands condoned.
Accordingly, applications stand disposed of.
ITAs 931/2010 and 932/2010
.
.
In these appeals preferred under Section 260A of the Income Tax Act, 1961
the only issue that emerges for consideration is whether the Income Tax
Appellate Tribunal (for short ?tribunal?) is justified in dislodging the
direction as regard the imposition of interest, a notional one.
On a perusal of the order passed by the tribunal it transpires that
ITA 931-932/2010 Page 2
of 3
it had placed reliance on the decision rendered in High Ways Construction Co.
Pvt. Ltd. Vs. Commissioner of Income Tax, (1993) 199 ITR 702 (Gauhati) and B and
A Plantations and Industries Ltd. Vs. Commissioner of Income Tax, (2000) 242 ITR
22 (Gauhati) wherein the High Court expressed the view that there is no
provision in the Income Tax Act empowering the income tax authorities to include
in the income interest which was not due or not collected.
In the case at hand, nothing has been brought on record that the assessee
had bargained for interest or collected the interest. When the interest was
not due or collected, we are afraid, the proposition canvassed by the
Revenue would not confer any kind of assistance. In our considered opinion, the
view expressed by the tribunal is absolutely tenable and does not warrant
interference. Resultantly, the appeal is dismissed in limine.
.
.
CHIEF JUSTICE
.
.
.
MANMOHAN, J
JULY 26, 2010
rn
.
ITA 931-932/2010 Page 3
of 3
.
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