BHARATPUR URBAN CO-OPERATIVE BANK LTD., Jaipur V. ACIT, BHARATPUR

ITA 1074/JPR/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2006 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 06-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA CIT DHK
• Keywords: Reopening of assessment; Opportunity of being heard; Bad and doubtful debts; Capital receipt
• Section: 143(3); 147

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 1074/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 BHARATPUR URBAN CO- OPERATIVE BANK LTD., KILA, OPP. POLICE CHOWKI, BHARATPUR (RAJ.) CUKE VS. A.C.I.T., BHARATPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABTT 2075 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI NIKHLESH KATARIA (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.A. VERMA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 09/10/2017 MN?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 10/10/2017 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATES FR OM THE ORDER OF THE LD. CIT(A), ALWAR DATED 29/09/2016 FOR THE A.Y. 2008-09, WHEREIN THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1.1 THE ID. AO ERRED IN LAW AS WELL AS ON THE FACT S OF THE PRESENT CASE IN REOPENING THE ASSESSMENT ON THE BASIS OF AN AUDIT O BSERVATION. SUCH REOPENING OF ASSESSMENT IS BAD IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE AND HENCE THE SAME MAY PLEASE B E QUASHED. 1.2 THE ID. AO ERRED IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE IN FRAMING OF EX PARTE ASSESSMENT WITHOUT CONSIDERING THE FACTS AND ITA 1074/JP/2016_ BHARATPUR URBAN COOPERATIVE BANK VS. ACIT 2 EVIDENCES ON RECORD AND HENCE, CONSEQUENT ADDITIONS WERE ALSO BAD IN LAW AND HENCE, THE SAME MAY PLEASE BE QUASHE D. 1.3 THE ID. CIT(A) ERRED IN LAW AS WELL AS FACTS OF THE PRESENT CASE IN MAKING OF AN EX PARTE ORDER WITHOUT GIVING ADEQUATE OPPORTUNITY OF BEING HEARD. WITHOUT PREJUDICE TO ABOVE 2. RS. 186403/- THE ID. AO ERRED IN LAW AS WELL AS ON THE FACTS OF THE PRESENT CASE IN MAKING AN ADDITION OF PROVISION FOR BAD & DOUBTFUL DEBTS ON THE PREMISE DEDUCTION IS AVAILABLE TO RURA L BRANCH ONLY. THE ID. CIT(A) ALSO ERRED IN CONFIRMING THE SAME. 3. RS.3,48,290/-/- THE LD. C1T(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE ID. AO BY TREATING PROVISION F OR NPA AS NOT ALLOWABLE ON THE BASIS OF AN AUDIT OBSERVATION. 4. RS.4600/- THE LD. AO IS NOT JUSTIFIED IN MAKING AN ADDITION OF TREATING PAST MEMBERSHIP FEE REPRESENTING A CAPITAL RECEIPTS AS PROFIT OF CURRENT YEAR. THE LD. CIT(A) ERRED IN CON FIRMING THE SAME. 5. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE LD. AO IN NOT ALLOWING THE ASSESSEE A DEDUCTION OF SPECIAL RESERV E AT 20% OF PROFIT DERIVED FROM ELIGIBLE BUSINESS. 2. IN THIS CASE, THE ASSESSEE HAS TAKEN VARIOUS GRO UNDS OF APPEAL AND AGAINST DECIDING THE APPEAL EX-PARTE WITHOUT PROVIDI NG ADEQUATE OPPORTUNITY OF HEARING AS WELL AS WITHOUT MERIT OF TH E CASE TO THE ASSESSEE. 3. IN THIS CASE ORIGINAL ASSESSMENT WAS COMPLETED U/ S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) VIDE ORDER D ATED 08/12/2010 AT TOTAL INCOME OF RS. 11,99,610/- AS AGAINST THE RETU RNED INCOME OF RS.11,59,708/-. THEREAFTER THE ASSESSMENT U/S 147 R. W.S. 143(3) OF THE ACT WAS COMPLETED AT THE TOTAL INCOME OF RS. 17,38,900/- . ITA 1074/JP/2016_ BHARATPUR URBAN COOPERATIVE BANK VS. ACIT 3 3. THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT( A). AT THE OUTSET OF HEARING, THE LD AR HAS SUBMITTED THAT THE LD. CI T(A) HAD PASSED EX PARTE ORDER AND THE ASSESSEE WAS DEPRIVED OF THE ADEQUATE AND EFFECTIVE OPPORTUNITY OF BEING HEARD AND HE PRAYED THAT THE M ATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR DECIDING ON M ERIT. 4. THE LD. DR WAS NOT HAVING ANY SERIOUS OBJECTION FO R THIS PROPOSAL OF THE LD. AR. THEREFORE, CONSIDERING ALL THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE AND EQUITY, THE ISSUES RAISED IN THE APPEAL ARE RESTORED BACK TO THE FILE OF THE LD. CIT( A) FOR FRESH ADJUDICATION. THE LD. CIT(A) SHALL PROVIDE PROPER AND EFFECTIVE OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, THE ISSUES RAISED IN THE APPEAL ARE RESTORED TO THE FILE OF THE LD. CIT(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 10/10/2017. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 10 TH OCTOBER, 2017 *RANJAN ITA 1074/JP/2016_ BHARATPUR URBAN COOPERATIVE BANK VS. ACIT 4 VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- BHARATPUR URBAN CO-OPERATIVE BANK LTD ., BHARATPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE A.C.I.T., BHARATPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 1074/JP/2016) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR