Appeal details
Counselvise Citation
[2016] 133 COUNSELVISE.COM (IT) 2753 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 6 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
04-02-2016
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
B
Next Hearing Date
27-01-2016
Assessment Year
2011-2012
Appeal Filed On
28-07-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , . . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI R.K. PANDA, AM SL. NO. ITA /CO NO. NAME OF APPELLANT NAME OF RESPONDENT ASST. YEAR 1 1815/PN/2014 ACIT, CIRCLE - 2, AURANGABAD SHRI CHHATRAPATI RAJASHRI SHAHU URBAN CO - OP BANK LTD. JANADHAR BHAVAN, JALNA ROAD, BEED 431 122 PAN NO. AAAJC0229K 2011 - 12 2 1513/PN/2014 ACIT, CIRCLE - 1, AURANGABAD M/S. AJANTA URBAN CO - OP BANK LTD., ZAMBAD HEIGHTS, JADHAV MANDI, AURANGABAD. PAN NO.AAAAA1642F 2011 - 12 3 2149/PN/2014 ITO, WARD - 2(3), AURANGABAD ADARSH MAHILA NAGARI SAHAKARI BANK LTD., PLOT NO.30 - 31, SHIVJYOTI COLONY, N - 6, CIDCO, AUR ANGABAD PAN NO.AAAAA1643E 2010 - 11 4 106/PN/2015 ACIT, CIRCLE - 2, SOLAPUR THE SOLAPUR DISTRICT CENTRAL COOPERATIVE BANK LTD., 207 - 209, GOLD FINCH PETH, 2011 - 12 GOLD FINCH PETH, SOLAPUR PAN NO.AAATT9561B 5 CO NO.05/PN/2016 THE SOLAPUR DISTRICT CENTRAL COOPERATIVE BANK LTD., 207 - 209, GOLD FINCH PETH, SOLAPUR PAN NO.AAATT9561B ACIT, CIRCLE - 2, SOLAPUR 2011 - 12 6 1554/PN/2014 DCIT, CIRCLE - 3, NANDED JANKALYAN URBAN CO - OP. BANK LTD., KALLAM DHOKI ROAD, KALLAM DIST, OSMANABAD - 413507 PAN NO.AAEFJ0853E 2011 - 12 7 1555/PN/2014 DCIT, CIRCLE - 3, NANDED LATUR URBAN CO - OP. BANK LTD., RAMGOPALJI RATHI BUSINESS COMPLEX, RAMGOPALJI RATHI MARG, SHIVAJINAGAR, LATUR - 413512 PAN NO.AAAAL0416G 2010 - 11 8 1556/PN/2014 DCIT, CIRCLE - 3, NANDED MALLESH URBAN CO - OP. BANK LTD. COLLEGE ROAD, NEAR BASWESHWAR CHOWK, AHMEDPUR, DIST. LATUR - 413515 PAN NO.AAAAM0961F 2011 - 12 9 1652/PN/2014 DCIT, CIRCLE - 3, NANDED NANDED DISTRICT CENTRAL CO - OP BANK LTD., NEAR SHIVAJI MAHARAJ STATUE, STATION ROAD, TQ & DIST. NANDED 431601 PAN NO.AAAAN0696A 2011 - 12 2 10 - 11 1642/PN/2014 & 1643/PN/2014 ACIT, CIRCLE - 1, AURANGABAD M/S. DEOGIRI NAGARI SAHAKARI BANK LTD., ARTH COMPLEX, ADALAT ROAD, AURANGABAD. PAN NO.AAAAD0527A 2010 - 11 & 2011 - 12 1 2 1795/PN/2014 ACIT, CIRCLE - 2, AURANGABAD POORNAWADI NAGRIK SAHAKARI BANK LTD., SUBHASH ROAD, BEED 431 122 PAN NO. AAAAP4233B 2011 - 12 1 3 1653/PN/2014 DCIT, CIRCLE - 3, NANDED LATUR DISTRICT CENTRAL CO - OP. BANK LTD., TILAK NAGAR, TQ & DIST. LATUR 413513 PAN NO.AAAAL0225H 2011 - 12 14 CO NO.09/PN/2016 LATUR DISTRICT CENTRAL CO - OP. BANK LTD., TILAK NAGAR, TQ & DIST. LATUR 413513 PAN NO.AAAAL0225H DCIT, CIRCLE - 3, NANDED 2011 - 12 / APPELLANT BY : SHRI HITENDRA NINAWE SL.NOS. - 1 TO 1 4 / RESPONDENT BY : SHRI M.K. KULKARNI SL.NO S . 1 & 8 : SHRI S.N. PURANIK SL.NO. 4 & 5 : SHRI V.C. DARAK SL.NO.7 : SHRI SUHAS BORA SL.NO.9 : SMT. DEEPA KHARE SL.NO.10 & 11 : SHRI S UNIL GANOO SL.NO. 1 2 : NONE SL. NO. 2, 3, 6, 13 & 14 / ORDER PER SUSHMA CHOWLA, JM: THIS BUNCH OF APPEALS FILED BY THE REVENUE RELATING TO DIFFERENT ASSESSEES ARE AGAINST RESPECTIVE ORDERS OF CIT(A) RELATING TO DIFFERENT ASSESSMENT YEARS AGAINST RESPECTIVE ORDERS PASSED UNDER SECTION 143(3) OF THE INCOME - TAX ACT, 1961 (I N SHORT THE ACT) . 2. THUS BUNCH OF PRESENT APPEALS RELATING TO DIFFERENT ASSESSEES WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER AS THE ISSUE RAISED IN ALL THESE APPEALS WAS SIMILAR. / DATE OF HEARING : 2 7.01 .201 6 / DATE OF PRONOUNCEMENT: 04.02. 201 6 3 3. THE REVENUE IN ITA NO.1 815 /PN/2014 HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1 ) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE CIT(A ) IS CORRECT IN DECIDING THAT ASSESSEE CAN OFFER HIS INTEREST RECEIVED FROM BAD AND DOUBTFUL DEBTS (NPA) ON ACTUAL RECEIPT BASIS AS PER RBI GUIDELINES EVEN T HOUGH ASSESSEE IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING. IN SPITE OF THAT, PROVISION OF SECTION 43D IS NOT APPLICABLE TO THE ASSESSEE . 2 ) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) IS CORRECT IN ALLOWING THE CLAIM OF THE ASSESSEE IN RESPECT OF AMORTISATION OF PREMIUM ON SECURITIES, BEING CLAIM NOT MADE IN THE RETURN OF INCOME AND RAISED DURING THE ASSESSMENT PROCEEDINGS . 3 ) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE ORDER OF THE A O BE RESTORED AND THAT OF THE CIT (A) BE VACATED. 4 ) THE APPELLANT CRAVES LEAVE TO ADD , AMEND OR ALTER ALL OR ANY GROUNDS OF APPEAL . 4. THE FIRST ISSUE RAISED IN THIS BUNCH OF APPEALS IS IN RELATION TO THE TREATMENT OF INTEREST INCOME ARISING ON NON - PERFORMING ASSETS (NPAS). 5. THE CASE OF THE ASSESSEE BEFORE THE REVENUE AUTHORITIES WAS THAT SINCE THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING, ACCRUED INTEREST ON NPAS WAS BEING RECOGNIZED IN THE BOOKS OF ACCOUNT. HOWEVER, IN VIEW OF THE GUIDELINES OF RBI, THE SAID INTEREST INCOME THOUGH WAS RECOGNIZED WAS NOT BEING OFFERED TO TAX . THE ASSESSING OFFICER WAS OF THE VIEW THAT WHERE THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING, THE INTEREST ACCRUED ON NPAS WAS INCLUDABLE IN THE HANDS OF ASSESSEE. 6. THE CIT(A) IN THIS BUNCH OF APPEALS HAVE DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE, IN TURN, FOLLOWING VARIOUS DECISIONS OF PUNE BENCH OF TRIBUNAL. 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER S OF CIT(A) . 4 8. IN SOME OF THE CASES, THERE WAS NO REPRESENTATION BY THE AUTHORIZED REPRESENTATIVES OR BY THE ASSESSEES. HOWEVER, BECAUSE OF THE ISSUE BEING COVERED BY THE ORDERS OF TRIBUNAL, THE SAME WAS DECIDED AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 9 . ANOTHER ISSUE WHICH ARISES IN THE PRESENT BUNCH OF APPEALS IS THAT IN SOME OF THE APPEALS FILED BY THE REVENUE, THE TAX EFFECT WAS BELOW THE LIMITS PRESCRIBED BY THE CBDT VIDE CIRCULAR NO. 21/2015, DATED 10.12.2015 . 10. THE ISSUE ARISING IN THIS BUNCH OF APPEALS IS IDENTICAL. HOWEVER, WE PROCEED TO ADJUDICATE THE ISSUE BY MAKING REFERENCE TO THE FACTS IN ITA NO.1815/PN/2014. 11. BRIEFLY, IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE IS A COOPERATIVE BANK ENGAGED IN T HE BUSINESS OF BANKING. THE ASSESSING OFFICER DURING THE BANK ENGAGED IN T HE BUSINESS OF BANKING. THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT THE ASSESSEE HAD NOT CREDITED THE INTEREST RECEIVABLE OR ACCRUED ON NON - PERFORMING ASSETS (REFERRED TO AS NPAS) TO ITS PROFIT & LOSS ACCOUNT FOR THE CAPTI ONED ASSESSMENT YEAR. THE CLAIM OF THE ASSESSEE IN THIS REGARD WAS THAT IN VIEW OF RBI GUIDELINES, THE SAID INTEREST INCOME ON NPAS WAS TO BE RECOGNIZED, BUT NOT TO BE OFFERED TO TAX. HOWEVER, THE ASSESSING OFFICER WAS OF THE VIEW THAT WHERE THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING, THE INTEREST ACCRUED ON NPAS IS TO BE ADDED IN THE HANDS OF ASSESSEE AND ADDITION TO TH AT EXTENT WAS MADE IN THE HANDS OF ASSESSEE. 12 . THE CIT(A) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER, AGAINST WHICH THE REVENUE IS IN APPEAL. 5 13. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE IN VIEW OF THE RATIO LAID DOWN BY THE HONBLE BOMBAY HIGH COURT IN CIT VS. (1) DEOGIRI NAGARI SAHAKARI BANK LTD. (INCOME TAX APPEAL NO.53 OF 2014), (2) PEOPLES CO - OPERATIVE BANK LTD. (INCOME TAX APPEAL NO.54 OF 2014), (3) NANDED DISTRICT CENTRAL CO - OP. BANK LTD. (INCOME TAX APPEAL NO.57 AND 58 OF 2014 ) AND (4) VASANTADADA NAGARI SAHAKARI BANK LTD. (INCOME TAX APPEAL NO.68 OF 2014) REPORTED IN (2015) 379 ITR 24 (BOM). 1 4 . WE FIND THAT SIMILAR ISSUE AS BEFORE US AROSE IN KOLHAPUR MAHILA SAHAKARI BANK LTD. VS. ITO IN ITA NO.01/PN/2013, RELATING TO ASSESSMENT YEAR 2009 - 10, VIDE ORDER DATED 29.01.2014. THE TRIBUNAL IN TURN FOLLOWING THE RATIO LAID DOWN BY THE PUNE BENCH OF TRIBUNAL IN ACIT VS. OSMANABAD JANTA SAHAKARI BANK LTD. IN ITA NO.795/PN/2011, ORDER DATED 31.08.2012, HELD AS UNDER: - 2. THE AS SESSEE IS A CO - OPERATIVE BANK ENGAGED IN THE BUSINESS OF 2. THE AS SESSEE IS A CO - OPERATIVE BANK ENGAGED IN THE BUSINESS OF ACCEPTING DEPOSITS FROM MEMBERS AND GIVING LOANS TO MEMBERS. IT HAS FILED ITS RETURN OF INCOME ON 11.09.2009 FOR THE YEAR UNDER CONSIDERATION DECLARING TOTAL INCOME AT 14,57,840/ - . IN THE SCRUTINY ASSESSMENT, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD NOT CREDITED INTEREST RECEIVABLE OR ACCRUED ON NON - PERFORMING ASSETS (HEREINAFTER REFERRED TO AS NPA) TO ITS PROFIT AND LOSS ACCOUNT FOR FINANCIAL YEAR 2008 - 09. THE ASSESSING OFFICER AFTER R EJECTING THE VARIOUS CONTENTIONS OF THE ASSESSEE HAS HELD THAT THE RBI GUIDELINES ARE NOT INTENDED TO REGULATE THE INCOME TAX LAW AND THE ASSESSEE WAS LIABLE TO BE ASSESSED ON ACCRUAL BASIS U/S.5 OF I.T. ACT FOR THE REASONS (I) BENEFITS EXTENDED TO SCHEDUL E BANK, PUBLIC FINANCIAL INSTITUTIONS, PUBLIC COMPANIES FOR THE PURPOSE OF SECTION 43D WERE NOT EXTENDED TO A CO - OPERATIVE BANK AND (II) THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING AND NOT CASH SYSTEM. ULTIMATELY THE ASSESSING OFFICER TAXED ON ACCRUED INTEREST OF 25,20,022/ - ADVANCE CLAIMED TO BE NPA ACCOUNT. THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY WHEREIN, FOLLOWING THE OSMANABAD JANTA SAHAKARI BANK LTD. IN ITA NO.795/PN/2011, THE CIT(A) HAS DECIDED THE ISSUE IN FAVOU R OF THE ASSESSEE AND THE SAME HAS BEEN OPPOSED BEFORE US ON BEHALF OF REVENUE. 2.1 AFTER GOING THROUGH THE RIVAL SUBMISSIONS AND MATERIAL ON RECORD, WE FIND THAT IN OSMANABAD JANTA SAHAKARI BANK LTD. (SUPRA) THE TRIBUNAL HAS DECIDED THE ISSUE IN FAVOUR OF ASSESSEE BY OBSERVING AS UNDER: 7. IN THE CASE BEFORE US, ADMITTEDLY, ASSESSEE HAS DIRECTLY TAKEN THE INTEREST TO THE BALANCE SHEET AND IT IS NOT ROUTED THROUGH THE PROFIT & LOSS ACCOUNT. MOREOVER, THE ISSUE OF THE TAXABILITY OF THE INTEREST ON THE STICKY LOSSES/ADVANCES, IS COVERED IN FAVOUR OF 6 THE ASSESSEE BY THE DECISION OF THE COORDINATE BENCHES IN THE CASE OF THE DURGA COOPERATIVE URBAN BANK LTD., VIJAYAWADA (SUPRA) AN D KARNAVATI COOPERATIVE BANK LTD. (SUPRA). WE FIND NO REASON TO INTERFERE WITH THE REASONED ORDER OF THE LD. CIT(A) AND ACCORDINGLY THE SAME IS CONFIRMED. IN THE RESULT, THE REVENUES GROUND IS DISMISSED. THE ABOVE DECISION HAS BEEN FOLLOWED IN (I) ACI T, CIRCLE - 3, NANDED V/S BHAGYALAXMI MAHILA SAHAKAR BANK LTD. ITA NO.793/PN/2011, (II) ACIT, CIRCLE - 3 V/S SIDHESHWAR SAHAKARI BANK LTD. ITA NO.794/PN/2011, (III) ACIT (CENTRAL) V/S LATUR URBAN CO - OPERATIVE BANK LTD. ITA NO.792/PN/2011 AND (IV) ASST. CIT, CI RCLE - 1 V/S DEOGIRI NAGARI SAHAKARI BANK LTD. ITA NO.817 & 1114/PN/2011. 1 5 . THE HONBLE BOMBAY HIGH COURT IN CIT VS. M/S. DEOGIRI NAGARI SAHAKARI BANK LTD. IN INCOME TAX APPEAL NO.53 OF 2014 & ORS. HAS LAID DOWN THE PROPOSITION THAT THE INTEREST ACCRUED ON NPAS IS NOT TAXABLE IN THE HANDS OF ASSESSEE, IN VIEW OF THE GUIDELINES ISSUED BY THE RBI. 1 6 . FOLLOWING THE SAME PARITY OF REASONING, WE HOLD THAT NO ADDITION IS WARRANTED ON ACCOUNT OF INTEREST ACCRUED ON NPAS. ACCORDINGLY, WE UPHOLD THE ORDER OF CIT(A) IN DELETING THE ADDITION MADE ON ACCOUNT OF INTEREST ACCRUED ON NPAS. THE GROUND OF APPEAL NO.1 RAISED BY THE REVENUE IS DISMISSED. 1 7 . THE ISSUE IN GROUND OF APPEAL NO.2 RAISED BY THE REVENUE IS AGAINST THE AMORTIZATION OF PREMIUM ON SECURITIE S. 1 8 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE SAID ISSUE IS ALSO COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS ORDERS OF TRIBUNAL. 1 9 . THE PERUSAL OF THE ASSESSMENT ORDER AND THE ORDER OF CIT(A) REFLECT THAT NO SUCH AD DITION HAVING BEEN MADE IN THE HANDS OF ASSESSEE OR BEING ADJUDICATED BY THE CIT(A). ACCORDINGLY, WE FIND NO MERIT IN THE GROUND OF APPEAL NO.2 RAISED B Y THE REVENUE . 7 ITA NO.1513/PN/2014 20 . THE FIRST GROUND OF APPEAL RAISED BY THE REVENUE IS AGAINST THE INTEREST ACCRUED ON NPAS, WHICH STANDS DISMISSED IN VIEW OF OUR DECISION IN THE PARAS HEREINABOVE. THE GROUND OF APPEAL NO.1 RAISED BY THE REVENUE IS THUS, DISMISSED. ITA NO.2149/PN/2014 2 1. THE ISSUE RAISED IN THE PRESENT APPEAL IS IN RELATION TO NPAS AND FOLLOWING THE SAME PARITY OF REASONING IN THE PARAS HEREINABOVE , WE DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE. ITA NO.106/PN/2015 & CO NO.05/PN/2016 2 2 . THE ISSUE IN THE APPEA L FILED BY THE REVENUE IS ONLY ON THE ADDITION MADE 2 2 . THE ISSUE IN THE APPEA L FILED BY THE REVENUE IS ONLY ON THE ADDITION MADE ON ACCOUNT OF INTEREST ACCRUED ON NPAS. THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE IN SUPPORT OF ORDER OF CIT(A). IN VIEW OF OUR DECISION IN THE PARAS HEREINABOVE, BOTH THE APPEAL OF THE REVENUE AND THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ITA NO.1554/PN/2014 2 3 . THE ISSUE IN THE PRESENT APPEAL IS ALSO IDENTICAL I.E. THE TREATMENT OF INTEREST ON NPAS. 2 4 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO. 2390 /PN/201 2 , RELATING TO ASSESSMENT YEAR 2009 - 10, ORDER DATED 03.01.2014 . 8 2 5 . THE ISSUE BEING IDENTICAL TO THE ISSUE DECIDED BY US IN THE PARAS HEREINABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. ITA NO.155 5 /PN/2014 2 6 . THE ISSUE IN THE PRESENT APPEAL IS ALSO IDENTICAL I.E. THE TREATMENT OF INTEREST ON NPAS. 2 7 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.792/PN/2011, RELATING TO ASSESSMENT YEAR 2007 - 08, ORDER DATED 31.08.2012 AND IN ITA NO.1817/PN/2013, RELATING TO ASSESSMENT YEAR 2009 - 10, ORDER DATED 16.09. 2014. 2 8 . THE ISSUE BEING IDENTICAL TO THE ISSUE DECIDED BY US IN THE PARAS 2 8 . THE ISSUE BEING IDENTICAL TO THE ISSUE DECIDED BY US IN THE PARAS HEREINABOVE, THE APPEAL OF THE REVENUE IS DISMISSED. 2 9 . IN BOTH THE APPEALS IN ITA NOS.1554 & 1555/PN/2014 , THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT TH AT EVEN THE TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED BY THE CBDT VIDE CIRCULAR NO. 21/2015, DATED 10.12.2015 . IN VIEW THEREOF, THE APPEALS OF THE REVENUE ARE NOT MAINTAINABLE AND ARE DISMISSED. ITA NO.1556/PN/2014 30 . THE ISSUE I N THE PRESENT APPEAL IS ALSO IDENTICAL I.E. TH E TREATMENT OF INTEREST ON NPAS, HENCE, THE SAME IS ALSO DISMISSED. 9 ITA NO.1652/PN/2014 31 . THE ISSUE IN T HE PRESENT APPEAL I.E. TREATMENT OF INTEREST ON NPAS IS COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.247/PN/2014, RELATING TO ASSESSMENT YEAR 2010 - 11, ORDER DATED 14.10.2014 WITH LEAD ORDER IN ITA NO.33/PN/2014 I.E. ASSESSEES OWN CASE. FOLLOWING OUR DECISION IN THE PARAS HEREINABOVE , THE GROUNDS OF APPEAL RAISED BY THE REVE NUE ARE DISMISSED. ITA NOS.1642 & 1643/PN/2014 3 2 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE ISSUE OF TREATMENT OF INTEREST ON NPAS STANDS COVERED BY THE ORDER OF HONBLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE AND ALSO THE ORDER OF TRIBUNAL RELATING TO ASSESSMENT YEAR 2009 - 10. TRIBUNAL RELATING TO ASSESSMENT YEAR 2009 - 10. 3 3 . FOLLOWING THE SAME PARITY OF REASONING, WE DISMISS THE GROUND OF APPEAL NO.1 IN BOTH THE APPEALS . 3 4 . THE ISSUE IN GROUND OF APPEAL NO.2 RAISED IN BOTH THE APPEALS IS AGAINST THE ORDER OF CIT(A) IN HOLDING THAT THE FORFEITED DIVIDEND AMOUNT WAS NOT INCOME OF THE ASSESSEE UNDER SECTION 28 OF THE ACT. 3 5 . THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE SAID ISSUE IS ALSO COVERED BY THE ORDER OF TRIBUNAL IN ASSESSE ES OWN CASE IN ITA NO.1630/PN/ 2012, RELATING TO ASSESSMENT YEAR 2009 - 10, ORDER DATED 31.10.2013 AND THE HONBLE BOMBAY HIGH COURT IN CIT VS. (1) DEOGIRI NAGARI SAHAKARI BANK LTD. (INCOME TAX APPEAL NO.53 OF 2014), (2) PEOPLES CO - OPERATIVE BANK LTD. (INCOME TAX APPEAL NO.54 OF 2014), (3) NANDED DISTRICT 10 CENTRAL CO - OP. BANK LTD. (INCOME TAX APPEAL NO.57 AND 58 OF 2014) AND (4) VASANTADADA NAGARI SAHAKARI BANK LTD. (INCOME TAX APPEAL NO.68 OF 2014) REPORTED IN (2015) 379 ITR 24 (BOM) AND WHILE DECIDING THE INCOME TAX APPEAL NOS.53 AND 54 OF 2014 I.E. RELATING TO THE ASSESSEE, THE HONBLE HIGH COURT OBSERVED AS U NDER: - 13. SO FAR AS INCOME TAX APPEALS NOS.53 OF 2014 AND 54 OF 2014 ARE CONCERNED, THE ISSUE WAS ALSO RAISED IN THE APPEALS BEFORE THE TRIBUNAL WITH REGARD TO THE ADDITION MADE BY THE ASSESSING OFFICER REPRESENTING THE FORFEITED DIVIDEND. THE LEARNED T RIBUNAL HAS RIGHTLY DEALT WITH THIS ISSUE AND OBSERVED THAT, UNCLAIMED DIVIDEND IN QUESTION AMOUNTS TO EXCESS PROVISIONS FOR DIVIDEND MADE BY THE ASSESSEE ON AN EARLIER OCCASION WHICH HAS BEEN REVERSED BY THE ASSESSEE IN THE YEAR UNDER CONSIDERATION AND TR ANSFERRED TO A RESERVE ACCOUNT. THE PROVISIONS FOR DIVIDEND MADE EARLIER WAS NOT A CHARGE ON THE PROFITS BUT IT WAS APPROPRIATION OF THE PROFITS AVAILABLE POST - TAXATION. WE FIND NO ERROR IN THE AFORESAID OBSERVATIONS. FURTHERMORE, IN THE APPEALS, AS MEN TIONED ABOVE, THE REVENUE HAS ONLY CHALLENGED THE DELETION OF THE ADDITIONS ON ACCOUNT OF THE INTEREST ON STICKY ADVANCES ALONE. IN VIEW OF THIS, WE PROCEED TO PASS THE FOLLOWING ORDER. ORDER 1 . INCOME TAX APPEALS NOS.53 OF 2014, 54 OF 2014, 57 OF 2014, 58 OF 2014, 68 OF 2014 ARE HEREBY DISMISSED. 3 6 . FOLLOWING THE SAME PARITY OF REASONING, WE UPHOLD THE ORDER OF CIT(A) 3 6 . FOLLOWING THE SAME PARITY OF REASONING, WE UPHOLD THE ORDER OF CIT(A) AND DISMISS THE GROUND OF APPEAL NO.2 RAISED BY THE REVENUE IN BOTH THE APPEALS. ITA NO.1795/PN/2014 3 7 . THE ONLY ISSUE ARISING IN THE PRESENT APPEAL IS AGAINST THE TREATMENT OF INTEREST ON NPAS. IN VIEW OF OUR ORDER IN THE PARAS HEREINABOVE, WE UPHOLD THE ORDER OF CIT(A). ITA NO.1653/PN/2014 & CO NO.09/PN/2016 3 8 . THE ISSUE RAISED IN THE APPEAL FILED BY T HE REVENUE IS AGAINST THE TREATMENT OF INTEREST ON NPAS. 11 3 9 . THE ASSESSEE HAS FILED CROSS OBJECTIONS, WHICH ARE IN SUPPORT OF THE ORDER OF CIT(A). 40 . IN VIEW OF THE ISSUE BEING COVERED IN FAVOUR OF THE ASSESSEE, WE DISMISS BOTH THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE. 41 . IN THE RESULT, ALL THE APPEAL S OF THE REVENUE AND CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRO NOUNCED ON THIS 4 TH DAY OF FEBRUARY, 2016 SD/ - SD/ - ( R.K. PANDA ) ( SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 4 TH FEBRUARY , 201 6 . GCVSR GCVSR / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3 . CIT (A) - AURANGABAD, CIT(A) - V , PUNE , CIT(A) - III, PUNE 4 . 5. 6. CIT , AURANGABAD, CIT - V, PUNE , CIT - III, PUNE , , / DR, ITAT, B PUNE; / GUARD FILE . / BY ORDER , //TRUE COPY// / SR. PRIVATE SECRETARY , / ITAT, PUNE
