Inocme Tax Officer Ward -2, Bhandara V. The Bhandrara Urban Co-Operative Bank Limited , Bhandara

ITA 159/NAG/2019

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-2, Bhandara against the order of the Commissioner of Income Tax (Appeals)-2, Nagpur, concerning the assessment year 2014-15. The appeal was related to disallowances and additions made under sections 36(viia) and 143(3) of the Income Tax Act, 1961, respectively. The primary issues revolved around a disallowance of Rs. 28,65,830 and an addition of Rs. 33,79,883 concerning accrued interest on Non-Performing Assets (NPAs). However, the tribunal dismissed the appeal based on the monetary limit for tax effect as specified in the CBDT circulars, which was applicable to all pending appeals.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136135 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 21-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 11-06-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect
• Section: 143(3)

Judgement Text

।आयकर अपीलीय अिधकरण Ɋायपीठ नागपुर मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH : : NAGPUR [VIRTUAL HEARING AT PUNE] BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.159/NAG/2019 िनधाᭅरण वषᭅ / Assessment Year : 2014-15 The Income Tax Officer, Ward-2, Bhandara. Vs The Bhandara Urban Co- Operative Bank Limited, Gandhi Chowk, Bhandara, Maharashtra – 441904. PAN : AAAFT 7398 G Appellant / Revenue Respondent /Assessee Assessee by Shri Manoj G Moryani – AR Revenue by Shri Kailash Kanojiya – DR Date of hearing 22/09/2023 Date of pronouncement 28/09/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Revenue i.e.ITO, Ward-2, Bhandara is directed against the order of ld.Commissioner of Income Tax(Appeals)-2, Nagpur dated 29.03.2019 for the A.Y.2014-15, emanating out of order under section 143(3) of the Income Tax Act, 1961 (in short “the Act”). The Revenue has raised the following grounds of appeal : ITA No.159/NAG/2019 The Bhandara Urban Co-Operativbe Bank Limited [R] 2 “1. Whether, on the facts and in the circumstances of the case in law, the Ld. CIT(A) erred in not appreciating the disallowance u/s 36(viia) to the tune of Rs.28,65,830/- made in assessment order under the provision I.T. Act 1961? 2. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the addition made in respect of accrued interest on NPAs to the tune of Rs.33,79,883/- made in assessment order under the provision I.T. Act 1961? 3. Any other ground that may be raised during the proceedings.” Findings & Analysis : 2. In this case, we observed Tax Effect is Rs.21,22,919/-. We have perused the calculation. The CBDT Circular No.03/2018 dated 11/07/2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakhs. Such limit has now been enhanced in the Circular No.17/2019 dated 08.08.2019 to Rs.50.00 lakhs. The tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakhs. ITA No.159/NAG/2019 The Bhandara Urban Co-Operativbe Bank Limited [R] 3 3. At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20.08.2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. In view of the foregoing discussion, we dismiss the appeal filed by the Revenue on account of low tax effect. However, if Revenue disagrees with the calculation submitted by the ld.AR, the Revenue is free to file Miscellaneous Application if deemed appropriate. 4. In the result, appeal of the Revenue is dismissed as not maintainable. Order pronounced in the open Court on 28 th September, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 28 th Sep, 2023/ SGR* आदेश कᳱ ᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर बᱶच, नागपुर/ DR, ITAT, Bench, Nagpur. 6. गाडᭅफ़ाइल / Guard File. ITA No.159/NAG/2019 The Bhandara Urban Co-Operativbe Bank Limited [R] 4 आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.