The Classic Co.operative Bank Ltd., Ahmedabad V. CIT (A), Ahmedabad-5, Ahmedabad

ITA 1873/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7023 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 11-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B P SRIVASTAVA

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD - BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ./ ITA NO.1873/AHD/2017 / ASSTT. YEAR: 2013-14 THE CLASSIC COOPERATIVE BANK LTD. NR. PUNJABI HALL SHREY HOSPITAL ROAD NAVRANGPURA AHMEDABAD. PAN : AAAJT 0169 K VS. ITO, WARD-5(2)(4) AHMEDABAD. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI SAGAR SHAH, AR REVENUE BY : SHRI B.P.SRIVASTAVA, SR.DR ! / DATE OF HEARING : 10/01/2019 '#$ ! / DATE OF PRONOUNCEMENT: 11/01/2019 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A)-5, AHMEDABAD DATED 30.5.2017 PASSED FOR T HE ASSTT.YEAR 2013-14. 2. GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE NOT IN CONSONANCE WITH RULE 8 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1963. THEY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN BR IEF, GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CIT(A) HAS ERRED IN UPHOLDI NG FINDING OF THE AO ITA NO.1873/AHD/2017 2 THAT THE ASSESSEE IS NOT ENTITLED FOR DEDUCTION AMO UNTING TO RS.7,70,959/- UNDER SECTION 80P(2)(D) OF THE INCOME TAX ACT, 1961. 3. WITH THE ASSISTANCE OF THE LD.REPRESENTATIVES, W E HAVE GONE THROUGH THE RECORD CAREFULLY. IT EMERGES OUT FROM THE RECORD THAT THE ASSESSEE WAS EARLIER A COOPERATIVE BANK, BUT SUBSEQ UENTLY, ITS LICENCE WAS CANCELLED BY RESERVE BANK OF INDIA, HENCE, IT I S BEING ASSESSED IN THE STATUS OF CREDIT SOCIETY. IT HAS FILED ITS RET URN OF INCOME DECLARING NIL INCOME ON 13.2.2014. THE LD.AO HAS GONE THROUG H THE RECORD AND OBSERVED THAT THE ASSESSEE EARNED INTEREST INCOME A MOUNTING TO RS.7,70,959/- ON DEPOSITS WITH GUJARAT STATE COOPER ATIVE BANK. THE LD.AO HAS HELD THAT THIS INTEREST INCOME DOESNT QU ALIFY FOR GRANT OF DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. ACCO RDINGLY HE DISALLOWED THIS DEDUCTION AND MADE ADDITION. APPEAL TO THE LD .CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 4. BEFORE US, THE LD.COUNSEL FOR THE ASSESSEE AT TH E VERY OUTSET SUBMITTED THAT THE ASSESSEE HAS NOT CLAIMED ANY DED UCTION IN THE COMPUTATION OF INCOME. HENCE, THERE COULD NOT BE A NY DISALLOWANCE AT THE END OF THE AO. ON THE OTHER HAND, LD.DR RELIED UPON THE ORDER OF THE AO. 5. ON DUE CONSIDERATION OF THE ABOVE FACTS AND CIRC UMSTANCES, WE FIND THAT THE ASSESSEE HAS NOT PLACED ON RECORD COP Y OF COMPUTATION OF INCOME. THOUGH, THE LD.COUNSEL FOR THE ASSESSEE IS POSSESSING ACKNOWLEDGEMENT WHICH WAS PRODUCED BEFORE US, BUT F ROM THIS ACKNOWLEDGEMENT, COMPLETE DETAILS OF THE INCOME COM PUTED BY THE ASSESSEE FOR THE PURPOSE OF TAXATION ARE NOT DISCER NIBLE. THEREFORE, WE DEEM IT APPROPRIATE TO SET ASIDE THE ISSUE TO THE F ILE OF THE AO FOR VERIFICATION. THE LD.AO SHALL EXAMINE COMPUTATION OF INCOME AND IF IT REVEALS THAT NO DEDUCTION UNDER SECTION 80P(2)(D) QUA THIS INTEREST INCOME IS CLAIMED BY THE ASSESSEE, THEN THERE COULD NOT BE ANY ITA NO.1873/AHD/2017 3 DISALLOWANCE BECAUSE THAT WILL AMOUNT TO DOUBLE DIS ALLOWANCE. ONCE THE ASSESSEE HAS NOT CLAIMED; TWICE THE AO HIMSELF HAS CARVED OUT THIS AMOUNT AND MADE ADDITION. IN CASE IF SUCH DEDUCTIO N IS NOT CLAIMED IN COMPUTATION OF INCOME, THEN NO DISALLOWANCE BE MADE TO THE TOTAL INCOME OF THE ASSESSEE. THE AO SHALL DECIDE THE IS SUE IN ACCORDANCE WITH LAW. 6. IT IS TO MENTION HERE THAT OBSERVATION MADE BY U S WILL NOT IMPAIR OR INJURE THE CASE OF THE AO NOR CAUSE ANY PREJUDIC E TO THE DEFENCE/EXPLANATION OF THE ASSESSEE IN THE SET ASID E PROCEEDINGS BEFORE THE AO. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 11 TH JANUARY, 2019 AT AHMEDABAD. SD/- SD/- (WASEEM AHMED) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER