THE SALEM URBAN CO-OP BANK LTD., SALEM V. ACIT CIRCLE-1, SALEM

ITA 1984/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5730 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 02-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1984/CHNY/2019 ( )( / ASSESSMENT YEAR : 2014-15 THE SALEM URBAN CO-OP.BANK LTD., 435, FIRST AGRAHARAM, SALEM 636 001. PAN : AABAT 9761 B V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, NO.3, GANDHI ROAD, SALEM 7. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE -.+, / 0 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 1 / 2$ / DATE OF HEARING : 12.09.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 01.10.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM, DA TED 26.04.2019 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 36(1)(VIIA) OF THE INCOME-TAX ACT, 19 61 (IN SHORT 'THE 2 I.T.A. NO.1984/CHNY/19 ACT') ON THE GROUND THAT THE PROVISION WAS NOT MADE IN THE BOOKS OF ACCOUNT. REFERRING TO THE PROFIT & LOSS ACCOUNT, T HE LD.COUNSEL SUBMITTED THAT A PROVISION WAS MADE TO THE EXTENT O F 8,70,000/- IN THE BOOKS OF ACCOUNT FOR THE YEAR ENDING 31.03.2014 . THIS WAS SPECIFICALLY BROUGHT TO THE NOTICE OF THE CIT(APPEA LS). ACCORDING TO THE LD. COUNSEL, THE CIT(APPEALS) WITHOUT CONSIDERI NG THE SAME HAS CONFIRMED THE ORDER OF THE ASSESSING OFFICER. THE ASSESSEE HAS FILED A COPY OF PROFIT & LOSS ACCOUNT FOR THE FINAN CIAL YEAR 2013-14 RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION AND SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION. 3. WE HEARD SHRI AR.V. SREENIVASAN, THE LD. DEPARTM ENTAL REPRESENTATIVE ALSO. THE COPY OF PROFIT & LOSS ACC OUNT FILED BEFORE THIS TRIBUNAL INDICATES THAT A PROVISION WAS MADE T O THE EXTENT OF 8,70,000/-. THE ASSESSEE CLAIMS THAT EVEN THOUGH T HE COPY OF PROFIT & LOSS ACCOUNT WAS FILED BEFORE THE ASSESSIN G OFFICER AS WELL AS THE CIT(APPEALS), THEY HAVE NOT CONSIDERED THE S AME. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT WHEN THE ASSESSEE MADE PROVISION IN THE BOOKS OF ACCOUNT AND PRODUCED PROF IT & LOSS ACCOUNT BEFORE THE ASSESSING OFFICER AS WELL AS THE CIT(APPEALS), 3 I.T.A. NO.1984/CHNY/19 THE SAME CANNOT BE IGNORED BY THE AUTHORITIES BELOW . BOTH THE AUTHORITIES BELOW ARE BOUND TO EXAMINE THE SAME AND FIND OUT WHETHER SUCH A PROVISION WAS MADE IN THE BOOKS OF A CCOUNT OR NOT, AS CLAIMED BY THE ASSESSEE. THEREFORE, THIS TRIBUN AL IS UNABLE TO UPHOLD THE ORDERS OF THE LOWER AUTHORITIES. ACCORD INGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE IS SUE OF DISALLOWANCE MADE UNDER SECTION 36(1)(VIIA) OF THE ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASS ESSING OFFICER SHALL RE-EXAMINE THE MATTER IN THE LIGHT OF THE MAT ERIAL THAT WAS FILED BY THE ASSESSEE AND BRING ON RECORD WHETHER ANY PRO VISION WAS MADE IN THE BOOKS OF ACCOUNT AS CLAIMED BY THE ASSE SSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 ST OCTOBER, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 1 ST OCTOBER, 2019. KRI. 4 I.T.A. NO.1984/CHNY/19 / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A), SALEM 4. 1 :2 /CIT, SALEM 5. 8; -2 /DR 6. <( = /GF.