The Tirupati Co-Operative Bank Ltd, Hyderabad V. The DCIT Circle-2(1), Tirupathi

ITA 1178/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3369 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 12-04-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 07-09-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: C P RAMASWAMI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA.1178/H/2010 ASSESSMENT YEAR 2007-08 THE TIRUPATHI COOPERATIVE BANK LIMITED, TIRUPATHI (PAN AAAAJ 9912 D) VS THE DCIT, CIRCLE 2(1), TIRUPATHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI C.P. RAMASWAMI, ADVOCATE RESPONDENT BY : SHRI V. SRINIVAS, DR O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTE D AGAINST THE ORDER PASSED BY THE CIT(A) TIRUPATHI DATED 15.6.201 0 AND PERTAINS TO THE ASSESSMENT YEAR 2007-08. 2. THE MAIN CONSTRUCTIVE GROUND RAISED BY THE AS SESSEE IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE D ISALLOWANCE FOR A SUM OF RS.5,85,561/- U/S 36(1)(VIIA) OF THE INCOME TAX ACT , 1961. 3. BRIEF FACTS RELATING TO THE FIRST GROUND OF T HE ISSUE ARE THAT THE ASSESSEE HAS CLAIMED 10% OF RURAL ADVANCES IS ARISI NG OUT OF BRANCHES AT TIRUCHANUR AND MUTHYALREDDYPALLE WHICH ARE VILLAGES . ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE HAS FAILED TO FILE FULL AND COMPLETE DETAILS SUCH AS DETAILED COMPUTATION FOR ARRIVING AT AGGREG ATE AVERAGE RURAL ADVANCES AND POPULATION PARTICULARS OF THE VILLAGES WHERE THE BRANCHES ARE LOCATED AND HENCE DISALLOWED THE CLAIM OF THE ASSES SEE. ITA NO.1178/H/2010 M/S TIRUPATHI COOPERATIVE BANK LTD., TIRUPATHI 2 2 4. THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSI NG OFFICER. HENCE THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE LEARNED AR SUBMITTED THAT FOR THE ASSESSM ENT YEAR 2008- 09, SIMILAR ISSUE WAS CONSIDERED BY THE AO AND THER E WAS NO DISALLOWANCE ON THIS COUNT. HENCE, HE PRAYED THAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF AO FOR FRESH CONSIDERATION. 6. THE LEARNED DR HAS EXPRESSED NO OBJECTION FOR THIS PROPOSITION. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED TH E MATERIALS AVAILABLE ON RECORD. WE ACCEDE TO THE REQUEST OF T HE AR. ACCORDINGLY, WE SET ASIDE THE ISSUE TO THE FILE OF AO TO EXAMINE TH E ISSUE AND TO ALLOW THE SAME IF THE FACTS AND CIRCUMSTANCES OF THIS ISSUE U NDER CONSIDERATION IS SAME AS IN THE SUBSEQUENT ASSESSMENT YEARS 2008-09. NO OTHER GROUNDS ARE PRESSED BEFORE US. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21.4.2011 SD/- G.C. GUPTA SD/- CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED 21 ST APRIL, 2011 ITA NO.1178/H/2010 M/S TIRUPATHI COOPERATIVE BANK LTD., TIRUPATHI 3 3 COPY FORWARDED TO: 1. DR. CP RAWASWAMI, ADVOCATE, FLAT NO.102 & 103, GITANJALI APARTMENTS, PLOT NO.108, SRINAGAR COLONY, HYDERABAD-73. 2. THE DCIT, CIRCLE 2(1), HYDERABAD 3. THE CIT(A) TIRUPATHI 4. THE CIT, TIRUPATHI 5. THE DR, ITAT, HYD. NP