Assistant Commissioner of Income Tax, Hubli V. M/s.Karnataka Vikas Grameen Bank, Dharwad

ITA 1566/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5296 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 29-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R REDDY I
• Assessee Lawyers: V CHANDRASHEKAR
• Keywords: Revision of order
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER ITA NOS.1566 TO 1567/BANG/2016 ASSESSMENT YEAR : 2008-09 TO 2009-10 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), HUBLI. VS. M/S. KARNATAKA VIKAS GRAMEEN BANK, P. B. NO. 11, BELGAUM ROAD, DHARWAD. PAN : AAAAK6324Q APPELLANTS RESPONDENT REVENUE BY : SHRI. G. R. REDDY, CIT(DR)-I ASSESSEE BY : SHRI. V. CHANDRASHEKAR, ADVOCATE DATE OF HEARING : 30.05.2017 DATE OF PRONOUNCEMENT : 31.05 .2017 O R D E R PER VIJAY PAL RAO, JM THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST TWO SEPARATE ORDERS OF THE CIT(A) BOTH DATED 29.02.2016 FOR THE ASSESSMENT YEARS 2008-09 TO 2009-10 RESPECTIVELY. ITA NOS.1566 TO 1567/BANG/2016 PAGE 2 OF 4 2. THE REVENUE HAS RAISED THE COMMON GROUNDS OF APP EAL AS UNDER: 3. WE HAVE HEARD THE LEARNED DR AS WELL AS THE LEAR NED AR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET IT IS NOTED THAT THE IMPUGNED ASSESSMENT HAS BEEN FRAMED BY THE AO IN PURSUANT TO THE REVISION ORDER DATED 14.03.2013 PASSED UNDER SECTION 263 OF THE ACT BY THE CIT. IT WAS FURTHER POINTED OUT THAT THIS TRIBUNAL VIDE ORDER DATED 13.02.2015 IN ITA NO. 662/2013 FOR THE ASSESSMENT YEAR 2008-09 AND VI DE ITS ORDER DATED 16.10.2015 FOR ASSESSMENT YEAR 2009-10 IN ITA NO. 632/2014 HAS SET ASIDE THE REVISION ORDERS PASS ED UNDER SECTION 263 OF THE ACT. THE LEARNED AR HAS SUBMITT ED THAT SINCE THE REVISIONS ITSELF HAVE ALREADY BEEN SET ASIDE BY THIS TRIBUNAL AND THE SAME ARE NO MORE IN EXISTENCE, THEREFORE TH E IMPUGNED ITA NOS.1566 TO 1567/BANG/2016 PAGE 3 OF 4 ASSESSMENT ORDERS PASSED IN PURSUANCE TO THE REVISI ON ORDERS ARE NOT SUSTAINABLE AND LIABLE TO BE SET ASIDE. ON THE OTHER HAND, THE LEARNED DR HAS CONTENDED THAT THE ISSUE ON THE MERI TS REGARDING DISALLOWANCE MADE UNDER SECTION 40(I)(A) IS NOW COV ERED IN FAVOUR OF THE REVENUE BY THE DECISION OF HONBLE JU RISDICTIONAL HIGH COURT IN THE CASE OF RAYTARA SAHAKARI NIYAMIT REPORTED IN 383 ITR 561 WHICH HAS BEEN UPHELD BY THE HONBLE SU PREME COURT IN 81 TAXMANN.COM 43. THUS THE LEARNED DR HA S SUBMITTED THAT WHEN THE ISSUE IS COVERED IN FAVOUR OF THE REVENUE THEN THE DISALLOWANCE MADE BY THE AO CANNOT BE DELE TED. 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AND AS W ELL AS RELEVANT MATERIAL ON RECORD, WE FIND THAT THE IMPUG NED ASSESSMENTS FOR BOTH THE ASSESSMENT YEARS HAS BEEN FRAMED IN PURSUANT TO THE REVISION ORDERS PASSED UNDER SECTIO N 263. THE TRIBUNAL VIDE ORDERS DATED 13.022015 AND 16.10.2015 FOR THE ASSESSMENT YEAR 2008-09 AND 2009-10 RESPECTIVELY HA VE ALREADY SET ASIDE THE REVISION ORDERS PASSED UNDER SECTION 263. THUS WHEN THE REVISION ORDERS ITSELF ARE NO MORE IN EXIS TENCE, THEN THE ASSESSMENT ORDERS PASSED IN PURSUANT TO THE REVISIO N ORDER HAVE NO LEGS TO STAND. THOUGH THE REVENUE HAS CHALLENGE D THE ORDERS PASSED BY THIS TRIBUNAL BEFORE THE HONBLE HIGH COU RT. HOWEVER, IN THE ABSENCE OF ANY ORDER OF THE HONBLE HIGH COURT OR STAY OF OPERATIONS OF THE ORDERS PASSED BY THIS TRIBUNAL, THE ASSESSMENT ORDER PASSED IN PURSUANCE TO THE REVISIO N ORDERS ARE NOT SUSTAINABLE IN LAW AND ACCORDINGLY LIABLE TO BE SET ASIDE. ITA NOS.1566 TO 1567/BANG/2016 PAGE 4 OF 4 HENCE, WE DO NOT FIND ANY ERROR OR IRREGULARITY IN THE IMPUGNED ORDERS OF THE CIT(A). 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF MAY, 2017. SD/- SD/- (JASON P. BOAZ) (VIJAY PAL RAO) ACCOUNTANT MEMBER JUDICI AL MEMBER BANGALORE. DATED: 31 ST MAY, 2017. / NSHYLU /* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.