MUNICIPAL CO-OP BANK LTD, MUMBAI V. DCIT 1(3), MUMBAI

ITA 1285/MUM/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7144 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 11-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAM KUMAR
• Assessee Lawyers: C A YUVAK MANGAONKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI RAJENDRA , HON'BLE ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA NO . 1285 /MUM/201 6 (A.Y : 2007 - 08 ) THE MUNICIPAL CO - OP BANK LTD, MUNICIPAL BANK BHAVAN, 245, P.D. MELLO R OAD, FORT, MUMBAI 400 001 PAN NO: AAAAT 3942 P V . DCIT 1(3), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400 020 (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.A. YUVAK MANGAONKAR DEPARTMENT BY : SHRI SUMAM KUMAR DATE OF HEARING : 14 .06.2018 DATE OF PRONOUNCEMENT : 22 .06.2018 O R D E R PER C.N. PRASAD (JM) 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 3, MUMBAI DATED 21.12.201 5 IN SUSTAINING THE PENALTY LEVIED U/S. 271(1)(C) OF THE ACT. 2. AT THE OUTSET LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT PENALTY WAS LEVIED ON THE DISALLOWANCE S /ADDITIONS MADE IN THE ASSESSMENT ORDER AS UNDER: - 2 ITA NO.1285/MUM/2016 (A.Y: 2007 - 08/) THE MUNICIPAL CO - OP BANK LTD, (1) DISALLOWANCE OF EXPENDITURE INCURRED ON REPAIRS AND MAINTENANCE I.E. CAPITALIZATION OF EXPENDITURE ON REPAIRS AN D RENOVATION. (2) DISALLOWANCE OF EXPENSES CLAIMED ON ACCOUNT OF UNRECOVERABLE ADVANCES PAID FOR DEVELOPMENT OF BANKING SOFTWARE. (3) ADDITION ON ACCOUNT OF UNCLAIMED CREDIT BALANCES. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBM ITTED THAT IN SO FAR AS I TEM NO S (1) & (2 ) ARE CONCERNED THE TRIBUNAL DELETED THE DISALLOWANCE S /ADDITIONS AND I TEM NO . ( 3 ) I.E. ADDITION ON ACCOUNT OF UNCLAIMED BALANCES THIS ISSUE WAS SET ASIDE TO THE ASSESSING OFFICER. COPY OF THE ORDER OF THE TRIBUNAL IN QUANTUM PROCEEDINGS IN ITA.NO. 4297 /MUM/2013 DATED 25.04.2017 IS PLACED ON RECORD. LD. DR ACCEPTED THE POSITION. 4. ON A PERUSAL OF THE ORDER OF THE TRIBUNAL, WE NOTICE THAT THE DISALLOWANCE OF EXPENDITURE INCURRED ON ACCOUNT OF REPAIRS AND RENOVATION AND UNRECOVERABLE ADVANCES WERE DELETED BY THE TRIBUNAL AND IN RESPECT OF ADDITION TOWARDS UNCLAIMED CREDIT BALANCES THE MATTER WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH VERI FICATION AND TO DECIDE AS PER LAW. IN THE CIRCUMSTANCES , SINCE THE BASIS FOR LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT NO LONGER REMAINS , T HE PENALTY WILL NOT SURVIVE . HENCE WE DELETE 3 ITA NO.1285/MUM/2016 (A.Y: 2007 - 08/) THE MUNICIPAL CO - OP BANK LTD, THE PENALTY LEVIED U/S. 271(1)(C) OF THE ACT. GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 22 ND JUNE, 2018. SD/ - SD/ - ( RAJENDRA ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 22 / 06/2018 GIRIDHAR , S R. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM