DCIT, Shimoga V. M/s VISL Employees Co-Op Bank Ltd., Bhadravathi

ITA 1267/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5443 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-05-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 24-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH B., BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 1267(BANG) 2016 (ASSESSMENT YEAR : 2008-09) THE DCIT, CIRCLE 1, SHIVAMOGGA APPELLANT VS M/S VISL EMPLOYEES CO-OPERATIVE BANK LTD. NEW TOWN, BHADRAVATHI RESPONDENT ASSESSEE BY : SHRI KASHINATH KAL MATH, ADVOCATE REVENUE BY : SHRI JEEAN J NEETALGI, STANDING COUN SEL DATE OF HEARING : 04-05-2017 DATE OF PRONOUNCEMENT: : 05-05-2017 O R D E R PER SHRI A.K.GARODIA, AM THIS APPEAL IS FILED BY THE REVENUE AND IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), DAVANGERE DATED 26.02.2016 FOR A. Y . 2008-09 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- 1.THE ORDER OF THE CIT(A), DAVANGERE, IS OPPOSED TO THE LAW AND NOT ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) IS NOT RIGHT IN GRANTING RELIEF TO T HE ASSESSEE ON THE ADDITION MADE ON ACCOUNT OF INTERES T ACCRUED ON NON-PERFORMING ASSETS(NPA). 3. THE CIT(A) ERRED IN COMING TO THE CONCLUSION TH AT THE ASSESSEE CAN FOLLOW MIXED SYSTEM OF ACCOUNTING. ITA NOS.1267(BANG)2016 2 4. THE CIT(A) FAILED TO APPRECIATE THE RATIONALE O F DECISION IN THE CASE OF HONBLE SC IN SOUTHERN TECHNOLOGIES LTD. VS JCIT (2010) 320 ITR 577. RB I GUIDELINES ARE ONLY PRUDENTIAL NORMS AND CANNOT OVE RRULE INCOME RECOGNITION AS PER IT ACT. 5. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED U PON, THE ORDER OF THE CT(A) MAY BE REVERSED AND THAT ASSESSMENT ORDER BE REVERSED. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OTHER GROUNDS ON OR BEFORE HEARING OF TH E APPEAL. 3. THE LD. DR OF THE REVENUE SUPPORTED THE ASSESSM ENT ORDER, WHEREAS THE LD. AR OF THE ASSESSEE SUPPORTED THE ORDER OF T HE LD. CIT(A). HE ALSO SUBMITTED THAT THE LD. CIT(A) HAS FOLLOWED THE JUDG MENT OF THE HONBLE SUPREME COURT RENDERED IN THE CASE OF UCO BANK VS CIT 237 ITR 889(SC). HE ALSO SUBMITTED THAT THE JUDGMENT OF THE HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS CANFIN HOMES IN ITA NO.801 OF 2006(KAR.) IS ALSO FOLLOWED BY THE LD. CIT(A). A SPECIFIC QUERY W AS RAISED BY THE BENCH ASKING THE LEARNED DR OF THE REVENUE AS TO WHETHER THERE IS ANY DIFFERENCE IN FACTS IN THE PRESENT CASE AND IN THESE CASES, WHICH ARE FOLLOWED BY THE LD. CIT(A) BEING THE JUDGMENT OF THE HONBLE APEX COURT RENDERED IN THE CASE OF UCO BANK VS CIT (SUPRA) AND THE JUDGMENT OF HONBL E KARNATAKA HIGH COURT RENDERED IN THE CASE OF CIT VS CANFIN HOMES(S UPRA). IT WAS ALSO POINTED OUT BY THE BENCH THAT THE LD. CIT(A) HAS AL SO FOLLOWED THE JUDGMENT OF THE HONBLE BOMBAY HIGH COURT RENDERED IN THE CA SE OF CIT VS HDFC BANK LTD. ALTHOUGH, NO CITATION HAS BEEN GIVEN BY T HE LD. CIT(A). THE LD. CIT(A) HAS ALSO FOLLOWED THE TRIBUNAL ORDER IN THE CASE OF M/S DAVANGERE ITA NOS.1267(BANG)2016 3 URBAN CO-OP. BANK LTD. IN ITA NO.9819/BANG/2012 FOR THE ASSESSMENT YEAR 2010-11 AND THE RELEVANT PORTION OF THE TRIBUN AL ORDER HAS BEEN RE- PRODUCED BY THE LD. CIT(A) IN PARA-5B OF HIS ORDER. IN REPLY, THE LD. DR OF THE REVENUE COULD NOT POINT OUT ANY DIFFERENCE IN F ACTS IN THE PRESENT CASE AND THE AFORESAID CASES WHICH ARE FOLLOWED BY THE L D. CIT(A). UNDER THIS FACTUAL AND LEGAL POSITION, WE DO NOT FIND ANY REAS ON TO INTERFERE IN THE ORDER OF THE LD. CIT(A). 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE ABOVE CA PTIONED DATE. SD/- (VIJAY PAL RAO) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE: D A T E D : 05.05.2017 AM * COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER AR, ITAT, BANGALORE ITA NOS.1267(BANG)2016 4 1. DATE OF DICTATION .. 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P. S. .. 4 DATE ON WHI CH THE ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .. 5. DATE ON WHICH THE ORDER COMES BACK TO THE SR. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADE D, FURNISH THE REASON FOR DOING SO. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER DOES FOR XEROX & ENDORSEMENT . 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK. 11 THE DATE ON WHICH TH E FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER. 12 THE DATE ON WHICH THE FILE GOES TO THE DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER 13 DATE OF DISPATCH OF ORDER