The ITO,S.K.Ward-2, Himatnagar V. The Idar Nagrik Sahkari Bank Ltd., Sabarkantha

ITA 1005/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9367 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-02-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 11-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMIR VAKIL
• Assessee Lawyers: D K PARIKH
• Keywords: Depreciation; Tax effect

Judgement Text

ITA NO. 10 05 /AHD/201 3 ASSESSMENT YEAR: 200 7 - 08 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD B BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR AM AND KUL BHARAT JM ] ITA NO. 10 05 /AHD/ 20 1 3 ASSESSMENT YEAR : 200 7 - 08 INCOME TAX OFFICER, .. .APPELLANT S.K. WARD - 2, HIMATNAGAR . VS. THE I DAR NAGRIK SAHKARI BANK LIMITED .. . RESPONDENT AT & P.O. IDAR, TA: IDAR, DIST: SABARKANTHA . [PAN: A A ABT 1950 A ] APPEARANCES BY: SAMIR VAKIL , FOR THE APPELLANT D.K. PARIKH , FOR THE RESPONDENT D ATE OF CONCLUDING THE HEARING : FEBRUARY 2 6 TH , 201 6 DATE OF PRONOUNCING THE ORDER : FEBRUARY 26 TH , 201 6 O R D E R PER PRAMOD KUMAR AM : 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 29 TH JANUARY , 201 3 , PASSED BY THE LD. CIT(A), FOR THE ASSESSMENT YEAR 200 7 - 08 , ON THE FOLLOWING GROUNDS : - 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE A.O. TO RESTRICT THE DISALLOWANCE TO THE EXTENT OF RS.99,03,392/ - ON ACCOUNT OF DEPRECIATION IN VALUE OF THE SECURITIES WITHOUT APP RECIATING THE FACT THAT THOSE SECURITIES WERE HELD BY THE ASSESSEE BANK AS INVESTMENT AND NOT AS STOCK - IN - TRADE, WHICH ARE ALLOWED TO VALUE AT THE COST VALUE OR MARKET VALUE AT THE FAG END OF THE ASSESSMENT YEAR AS PER ACCOUNTING PRINCIPLE, NOT THE ITEM HE LD AS INVESTMENT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT(A) MAY BE SET ASIDE AND THAT OF THE ASS ESSING OFFICER MAY BE RESTORED TO THE ABOVE EXTENT. ITA NO. 10 05 /AHD/201 3 ASSESSMENT YEAR: 200 7 - 08 PAGE 2 OF 2 2. WE HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015, WE ARE OF THE CONSIDERED VIEW THAT THIS APPEAL IS LIABLE TO BE DISMISSED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.10,00,000/ - . 3 . IN THE RESULT, THE APPEAL IS DISMISSED. P RONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF FEBRUARY, 2016 . SD/ - SD/ - KUL BHARAT PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) PBN/* DATED: THE 26 TH DAY OF FEBRUARY , 201 6 . COPIES TO : (1) THE APPELLANT ( 2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD