M/s. Muzaffarnagar Dist. Coop. Bank Ltd., Muzaffarnagar V. ACIT, Muzaffarnagar

ITA 1005/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7702 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 21-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Bad and doubtful debts; TDS
• Section: 244A; 234B; 40(a)(ia); 13

Judgement Text

ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 1 OF 14 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: E: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO:- 1005/DEL/2017 ( ASSESSMENT YEAR: 2012-13) M/S MUZAFFARNAGAR DIST. COOP. BANK LTD., COURT ROAD, MUZAFFARNAGAR. VS. ACIT, CIRCLE-1, MUZAFFARNAGAR. PAN NO: AAAAM4327P APPELLANT RESPONDENT ASSESSEE BY : NONE. REVENUE BY : MS. RAKHI VIMAL, SR. DR ORDER PER ANADEE NATH MISSHRA, AM (A) THIS APPEAL BY ASSESSEE IS FILED AGAINST THE IMPUG NED APPELLATE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), MUZAFFARNAGAR , [LD. CIT(A), FOR SHORT] DATED 30.11.2016 FOR ASSESSMENT YEAR 2012-13. THE GROUN DS OF APPEAL ARE AS UNDER: 1. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCES O F THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE AC TION OF LD. AO IN NOT ALLOWING THE DEDUCTION U/S 80P(2)(D) ON THE DIVIDEN D INCOME OF RS.3,42,21,000/- RECEIVED FROM ANOTHER COOPERATIVE SOCIETY AND THAT TOO BY RECORDING INCORRECT FACTS AND FINDINGS AND WITHOUT OBSERVING THE PRINCIPLES OF NATURAL JUSTICE. 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD. CIT(A) IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS.3,42,21,000/- U/S ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 2 OF 14 80P(2)(D), IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACT ION OF LD. AO IN MAKING ADDITION OF RS. 2,03,73,698/- ON ACCOUNT OF PAYMENT TOWARDS GRATUITY FUND TO LLC AND THAT TOO BY RECORDING INCORRECT FACTS AND F INDINGS AND WITHOUT OBSERVING THE PRINCIPLES OF NATURAL JUSTICE. 4. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD. CIT(A) IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 2,03,73,698/- ON ACCOUNT OF PAYMENT TOWARDS GRATUITY FUND TO LIC, IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACT ION OF LD. AO IN MAKING ADDITION OF RS.70,076/- ON ACCOUNT OF INTEREST PAID TO SPECIAL BAD DEBTS RESERVE. 6. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACT ION OF LD. AO IN MAKING ADDITION OF RS.47,57,697/- AND RS.6,02,893/- ON ACC OUNT OF PAYMENT OF INTEREST TO AGRICULTURE STABILIZATION FUND AND RISK FUND RESPECTIVELY AND THAT TOO BY RECORDING INCORRECT FACTS AND FINDINGS AND W ITHOUT CONSIDERING THE SUBMISSIONS AND EVIDENCES OF THE ASSESSEE AND WITHO UT OBSERVING THE PRINCIPLES OF NATURAL JUSTICE. 7. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD. CIT(A) IN CONFIRMING THE ACTION OF LD. AO IN MAKING AGGREGATE ADDITION OF RS.53,60,590/- ON ACCOUNT OF PAYMENT OF INTEREST TO AGRICULTURE STABILIZATION FUND AND RISK FUND, IS BAD IN LAW AND AGAINST THE F ACTS AND CIRCUMSTANCES OF THE CASE. 8. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT REVERSING THE ACTION OF LD. AO IN MAKING THE ADDITION OF RS.3,14,050/- ON ACCOUNT OF INTERES T ON INCOME TAX REFUND U/S 244A AND FURTHER ERRED IN DIRECTING THE LD. AO IN T HIS REGARD. 9. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACT ION OF LD. AO IN MAKING DISALLOWANCE OF RS.6,24,175/- ON ACCOUNT OF PREPAID EXPENSES. 10. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT REVERSING THE ACTION OF LD. AO IN MAKING THE ADDITION OF RS. 15,468/- ON ACCOUNT OF HOUSE TA X PAID AND FURTHER ERRED IN DIRECTING THE LD. AO IN THIS REGARD. 11. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANC ES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN NOT REVERSING THE ACTION OF LD. AO IN MAKING THE DISALLOWANCE OF RS.8,28,140/- ON ACCOUNT OF NON -DEDUCTION OF TDS ON ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 3 OF 14 RENT PAID U/S 40(A)(IA) AND FURTHER ERRED IN DIRECT ING THE LD. AO IN THIS REGARD. 12. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTAN CES OF THE CASE, LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACT ION OF LD. AO IN CHARGING INTEREST U/S 234B AND 234C OF THE ACT. 13. THAT THE APPELLANT CRAVES THE LEAVE TO ADD, MOD IFY, AMEND OR DELETE ANY OF THE GROUNDS OF APPEAL AT THE TIME OF HEARING AND AL L THE ABOVE GROUNDS ARE WITHOUT PREJUDICE TO EACH OTHER. [B] THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). V IDE IMPUGNED APPELLATE ORDER DATED 30.11.2016, WHEREIN LD. CIT(A) PARTLY ALLOWED ASSESSEES APPEAL. THE RELEVANT PORTION OF THE ORDER DATED 30.11.2016 OF THE LD. CI T(A) IS REPRODUCED AS UNDER: ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 4 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 5 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 6 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 7 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 8 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 9 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 10 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 11 OF 14 ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 12 OF 14 [C] THIS PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE AFORESAID IMPUGNED APPELLATE ORDER DATED 30.11.2016 OF THE LD . CIT(A). AT THE TIME OF HEARING, REVENUE WAS REPRESENTED BY MS. RAKHI VIMAL, THE LEA RNED SENIOR DEPARTMENTAL REPRESENTATIVE (LD. SR. DR, FOR SHORT). HOWEVER, NONE WAS PRESENT FROM THE ASSESSEES SIDE. IN THE ABSENCE OF ANY REPRESENTA TION FROM ASSESSEES SIDE, AT THE TIME OF HEARING BEFORE US, WE HEARD THE LD. SR. DR; WHO RELIED UPON THE ORDER DATED 31.03.2015 OF THE ASSESSING OFFICER AND THE AFORESA ID IMPUGNED APPELLATE ORDER DATED 30.11.2016 OF THE LD. CIT(A). AFTER PERUSAL OF THE MATERIALS ON RECORD, INCLUDING THE ORDER OF THE AO AND THE AFORESAID IMPUGNED APPELLAT E ORDER DATED 30.11.2016 OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS PASSED SPEAKING ORDER ON MERITS. RELEVANT PORTION OF THE IMPUGNED APPELLATE ORDER OF THE LD. CIT(A) HAS ALREADY BEEN REPRODUCED IN FOREGOING PARAGRAPH [B] OF THIS ORDER. WE FIND THAT THE LD. CIT(A) HAS GIV EN DETAILED REASONS FOR HIS DECISION ON MERITS IN THE AFORESAID IMPUGNED APPELLATE ORDER DATED 30.11.2016 OF LD. CIT(A). DURING APPELLATE PROCEED INGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT, FOR SHORT) NO MATERIAL HAS BEEN B ROUGHT FOR OUR CONSIDERATION TO PERSUADE US TO TAKE A VIEW DIFFERENT FROM THE VIEW TAKEN BY THE LD. CIT(A) IN THE IMPUGNED APPELLATE ORDER ON MERIT. AFTER HEARING T HE LD. SR. DR AND AFTER PERUSAL OF MATERIALS ON RECORD, AND FURTHER, IN VIEW OF THE FO REGOING DISCUSSION, WE DECLINE TO INTERFERE WITH THE AFORESAID IMPUGNED APPELLATE ORD ER DATED 30.11.2016 OF LD. CIT(A), AND ACCORDINGLY, THIS APPEAL IS DISMISSED. [D] BEFORE WE PART; WE EXPLICITLY CLARIFY THAT THE ASSESSEE WILL BE AT LIBERTY TO APPROACH ITAT FOR RESTORATION OF THE APPEAL IN ACCO RDANCE WITH PROVISO TO ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 13 OF 14 RULE 24 OF INCOME TAX (APPELLATE TRIBUNAL), RULES, 1963. IF THE ASSESSEE DOES APPROACH ITAT FOR RESTORATION OF THE APPEALS I N ITAT, THE MATTER WILL BE CONSIDERED IN ACCORDANCE WITH LAW HAVING REGARD TO THE FACTS AND CIRCUMSTANCES. [E] IN THE RESULT, APPEAL FILED BY ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/01/2020. SD/- SD/- (AMIT SHUKLA) (ANADEE NATH MISSH RA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28/01/2020 POOJA/- COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO.-1005/DEL/2017. M/S MUZAFFARNAGAR DIST. COOP. BANK LTD. PAGE 14 OF 14 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER