Waiganga Krishna Gramin Bank, Nagpur V. Assistant Commissioner of Income-tax,

ITA 1845/PUN/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1583 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 23-08-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 26-08-2016
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.1845/PUN/2016 / ASSESSMENT YEAR : 2010-11 VIDHARBHA KONKAN GRAMIN BANK (SUCCESSOR TO WAINGANGA KRISHNA GRAMIN BANK), CHANDRAPRASTHA, 2 ND & 3 RD FLOOR, PLOT NO.6, DEENDAYAL NAGAR, RING ROAD, NAGPUR 440 022 PAN : AAAAW1419N VS. ACIT, CIRCLE-2, SOLAPUR APPELLANT RESPONDENT / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PA SSED BY THE CIT(A)-7, PUNE ON 01-04-2016 IN RELATION TO THE ASS ESSMENT YEAR 2010-11. 2. THE APPEAL IS TIME BARRED BY 22 DAYS. THE ASSESSEE HAS FILED A PETITION FOR CONDONATION OF DELAY ACCOMPANIED BY THE AFFIDAV IT GIVING REASONS FOR THE DELAY IN PRESENTATION OF THE APPEAL BE FORE THE ASSESSEE BY SHRI C. NARESH REVENUE BY SHRI AJAY DHOKE DATE OF HEARING 12-12-2019 DATE OF PRONOUNCEMENT 13-12-2019 ITA NO.1845/PUN/2016 VIDHARBHA KONKAN GRAMIN BANK 2 TRIBUNAL. WE ARE SATISFIED WITH SUCH REASONS AND ACCORDIN GLY ADMIT THE APPEAL FOR HEARING. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E FILED ITS RETURN DECLARING NIL INCOME. THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALL ED `THE ACT) AT NIL INCOME. THEREAFTER, AN ORDER U/S.154 CAME TO BE PA SSED BY THE AO DETERMINING TOTAL INCOME AT RS.4,48,96,295/-. THE AS SESSEE FILED APPEAL AGAINST THE ORDER U/S.154 OF THE ACT BUT REMAINE D UNSUCCESSFUL BEFORE THE LD. CIT(A). THIS IS HOW, THE ASS ESSEE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. 4. THE ASSESSEE HAS RAISED AN ADDITIONAL GROUND, WHICH RE ADS AS UNDER : THE APPELLANT BEING A REGIONAL RURAL BANK AND BEING DEEMED TO BE A COOPERATIVE SOCIETY FOR THE PURPOSE OF INCOM E- TAX ACT AS PER SECTION 22 OF REGIONAL RURAL BANK ACT AND THE OVERRIDING PROVISION AS PER SECTION 32 OF RURAL BANK ACT, IS ENTITLED TO BENEFIT OF DEDUCTION U/S.80P(2)(A)(I) OF THE INCOME- TAX ACT AS HELD BY HONBLE ITAT ALLAHABAD IN THE CASE OF BARODA UTTAR PRADESH GRAMIN BANK (ITA 403 TO 405/ALLD/2014 AND ACCORDINGLY DEDUCTION UNDER THE SAID SECTION SHOULD BE ALLOWED IN COMPUTING THE TOTAL INCOME. 5. SINCE THIS GROUND INVOLVES A PURE QUESTION OF LAW AND DO ES NOT REQUIRE ANY FRESH ADJUDICATION ON FACTS, WE, THEREFORE, A DMIT THE ITA NO.1845/PUN/2016 VIDHARBHA KONKAN GRAMIN BANK 3 SAME IN THE HUE OF THE JUDGMENT OF HONBLE SUPREME COURT IN NATIONAL THERMAL POWER COMPANY LTD. VS. CIT (1998) 229 ITR 383 (SC). 6. THROUGH THE ADDITIONAL GROUND, THE ASSESSEE IS URGING TH AT IT BEING A REGIONAL RURAL BANK IS ENTITLED TO DEDUCTION U/S.80P(2) (A)(I) OF THE ACT, WHICH WAS NEITHER CLAIMED IN THE RETURN NOR ALLO WED IN THE ASSESSMENT. IT WAS THUS REQUESTED THAT THE BENEFIT O F THE SAME SHOULD BE CONFERRED ON THE ASSESSEE. THE LD AR CONTEND ED THAT IF THE BENEFIT OF DEDUCTION U/S.80P IS GIVEN, THEN MOST OF THE ISSU ES IN THE APPEAL WOULD BECOME ACADEMIC. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH TH E RELEVANT MATERIAL ON RECORD. IT IS SEEN THAT THE ADDITIONAL GROU ND HAS BEEN RAISED BEFORE THE TRIBUNAL FOR THE FIRST TIME CLAIMING TH E BENEFIT OF SECTION U/S.80P OF THE ACT ON THE GROUND OF ITS ELIG IBILITY. SINCE THE ELIGIBILITY OF THE ASSESSEE FOR THE BENEFIT U/S.80P OF THE ACT HAS NOT BEEN EXAMINED BY THE AO, IN OUR CONSIDERED OPINION , THE ENDS OF JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED ORDER IS SET- ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT HIM TO EXAMINE THE CLAIM OF THE ASS ESSEE FOR ITA NO.1845/PUN/2016 VIDHARBHA KONKAN GRAMIN BANK 4 ENTITLEMENT TO DEDUCTION U/S.80P(2) OF THE ACT AS PER LAW AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DECEMBER, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 13 TH DECEMBER, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-7, PUNE 4. 5. 6. THE CIT-6, PUNE , , / DR B, ITAT, PUNE; / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE ITA NO.1845/PUN/2016 VIDHARBHA KONKAN GRAMIN BANK 5 DATE 1. DRAFT DICTATED ON 12-12-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 12-12-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *