D.C.I.T. Amravati Circle, Amaravati V. THE JIJAU COMMERCIAL CO-OPERATIVE BANKLTD., Amaravati

ITA 129/NAG/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2177 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 21-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Assessee Lawyers: L S DEWANI
• Keywords: Retrospective amendment; Tax effect

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH: NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. IT A NO. 1 2 9 /NAG/201 5 A SSESSMENT Y EAR : 20 1 0 - 11 DY. COMMISSIONER OF INCOME TAX AMRAVATI CIRCLE, AAYKAR BHAW AN, AMBAPETH, AMRAVATI - 444601 VS THE JIJAU COMMERCIAL CO - OPERATIVE BANK LTD. KHATRI COMPLES, WALCUT6 COMPOUND, AMRAVATI - 444601 PAN : - AAAAJ1905E (APPLIC ANT) (RESPONDENT) APPLICANT BY SHRI A. R .NINAWE , D.R. RESPONDENT BY SHRI L.S.DEWANI & SHRI K.P. DEWANI , A.R. DATE OF HEARING : - 16 /0 6 /2016 DATE OF P RONOUNCEMENT: - 16 / 06 /2016 O R D E R PER SHRI SHAMIN YAHYA, A.M . THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I , NAGPUR DATED 29 - 0 1 - 201 5 . THE GROUNDS RAISED READ AS UNDER: - 1. O N THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW , WHETHER THE CIT(A) HAS ERRED IN ALLOW ING THE CLAIM OF DEDUCTION OF RS.27 , 4 0 , 7 0 6 / - ON ACCOUNT OF DIMINUTION IN VALUE OF GOVERNMENT SECURITIES OVER AND ABOVE THE PROVISION OF RS.10,00,000 / - MADE ON ACCOUNT OF INVESTMENT FLUCTUATION IN THE P & L A/C. 2. O N THE FACTS AND I N THE CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE CIT(A) HAS ERRED IN ALLOW ING THE ABOVE DEDUCTION DISREGARDING THE FACT THE ASSESSEE HAS FLOUTED THE RBI GUIDELINES DA TED 16.10.2000 BY NOT MAKING ANY CLASSIFICATION OF ITS INVESTMENTS JUSTIFYING THE CLAIM OF ABOVE LOSS. 2 IT A NO .1 2 9 /NAG/201 5 - (T - E) A.M.SIR.(MBODKHE,P.S.) 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, WHETHER THE CIT(A) HAS ERRED IN ALLOW ING THE ABOVE DEDUCTION DISREGARDING THE FACT THE ASS ESSEE DEVIATED FROM THE MERCANTILE SYSTEM OF ACCOUNTING BEING EARLIER FOLLOWED BY IT IN CLAIMING THE ABOVE LOSS. 2. AT THE THRESHOLD IT IS NOTED THAT THE TAX EFFECT IN THIS CASE IS BELOW THE LIMIT OF RS.10 LACS FIXED BY THE CBDT FOR FILING APPEAL BEFORE T HE INCOME TAX APPELLATE TRIBUNAL VIDE CBDT CIRCULAR NO.21/2015 DATED 10 - 12 - 2015. IN THE SAID CIRCULAR IT HAS BEEN SPECIFIED THAT THE CIRCULAR WOULD HAVE RETROSPECTIVE EFFECT AND THE REVENUE WOULD NOT PRESS AND WOULD WITHDRAW SUCH APPEAL. THERE ARE CERTAIN EXCEPTIONS MENTIONED IN THE SAID CIRCULAR. LEARNED D.R. COULD NOT POINT OUT THAT ANY OF THESE CASES ATTRACT THE EXCEPTIONS PROVIDED IN THE SAID CIRCULAR. IN THESE CIRCUMSTANCES, IN THE LIGHT OF THE ABOVE SAID CBDT CIRCULAR, THIS APPEAL IS DISMISSED ON ACCO UNT OF TAX EFFECT IN LIMINE . 3. IN THE RESULT, THIS APPEAL BY THE REVENUE STANDS DISMISSED IN LIMINE. ORDER PRONOU NCED IN THE OPEN COURT ON THIS 16 TH DAY OF JUNE , 2016. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : - NAGPUR D ATED: - 16 / 0 6 /2016. 3 IT A NO .1 2 9 /NAG/201 5 - (T - E) A.M.SIR.(MBODKHE,P.S.) COPY FORWARDED TO : 1. THE JIJAU COMMERCIAL CO - OPERATIVE BANK LTD. KHATRI COMPLES, WALCUT6 COMPOUND, AMRA VATI - 444601 2. DY. COMMISSIONER OF INCOME TAX AMRAVATI CIRCLE, AAYKAR BHAWAN, AMBAPETH, AMRAVATI - 444601 1. C.I.T. - 1, NAGPUR 2. CIT (APPEALS) - I , NAGPUR. 3. D.R., ITAT, NAGPUR. 4. GUARD FILE TRUE COPY B Y ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR MANGESH BODKHE/P.S.