Peoples Co.op Bank Ltd., Hingoli V. Commissioner of Income-tax,

ITA 2027/PUN/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1762 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 14-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law
• Section: 263

Judgement Text

] IQ.KS ] IQ.KS ] IQ.KS ] IQ.KS IQ.KS IQ.KSIQ.KS IQ.KS IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , ' # BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.2027/PN/2014 '% % / ASSESSMENT YEAR : 2009-10 PEOPLES CO.OP. BANK LTD. HEAD OFFICE, AKOLA ROAD, HINGOLI 431513 PAN NO. AAABP0329B . / APPELLANT V/S ACIT, CIRCLE - 1, AURANGABAD . / RESPONDENT / ASSESSEE BY : SHRI M.K. KULKARNI / DEPARTMENT BY : SHRI RAJEEV KUMAR / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX, AURANGABAD DATED 18-03-2014 FOR THE ASSESSMENT YEAR 2009-10 PASSED U/S.263 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. THE APPEAL FILED BY THE ASSESSEE IS TIME BARRED BY 21 1 DAYS. THE ASSESSEE HAS FILED AN AFFIDAVIT CITING REASONS FOR DELAY IN FILING OF THE APPEAL. THE DELAY IN FILING OF APPEAL HAS BEEN ATTRIBUTED TO THE PRE- OCCUPATION OF THE BANK STAFF IN THE FINANCIAL YEAR CLOSING A ND FILING OF VARIOUS REPORTS AND RETURNS IN COMPLIANCE OF RESERVE BAN K OF INDIA / DATE OF HEARING :24.05.2016 / DATE OF PRONOUNCEMENT: 25.05.2016 2 ITA NO.2027/PN/2014 GUIDELINES. AFTER EXAMINING THE AFFIDAVIT, WE ARE SATISFIED THAT THE DELAY IN FILING OF THE APPEAL IS NOT DELIBERATE OR WILLFUL. THEREFORE, WE CON DONE THE DELAY IN FILING OF THE APPEAL AND ADMIT THE APPEAL TO BE HEAR D AND DISPOSED OFF ON MERITS. 3. THE ASSESSEE IS A COOPERATIVE SOCIETY ENGAGED IN THE BANKING BUSINESS AT HINGOLI. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009-10 ON 30-09-2009 DECLARING TOTAL INCOME OF RS.5,15,43,200/-. THE CASE OF THE ASSESSEE WAS SELECTED FO R SCRUTINY AND ACCORDINGLY NOTICE U/S.143(2) WAS ISSUED TO THE ASSESSEE ON 18-08-2010. THE AO AFTER MAKING CERTAIN ADDITIONS IN THE INCOME RETUR NED, ASSESSED THE TOTAL INCOME OF THE ASSESSEE AS RS.6,50,50,420/-. TH EREAFTER, THE CIT INVOKED THE PROVISIONS OF SECTION 263 AND ISSUED SHOW CAU SE NOTICE ON 24- 02-2014 ON THE GROUND THAT THE ASSESSEE HAS DEBITED A SUM OF RS.10,10,760/- TOWARDS AMORTIZATION OF HTM SECURITIES. THE SAID CLAIM OF THE ASSESSEE IS NOT ALLOWABLE EITHER U/S.37 OF THE ACT OR ANY OTHER PROVISIONS OF THE ACT. THE CIT VIDE IMPUGNED ORDER DIRECT ED THE AO TO MAKE DISALLOWANCE OF RS.10,10,760/-. AGAINST THESE FINDINGS OF THE CIT THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI M.K. KULKARNI APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE ISSUE RAISED BY THE CIT IN REVISION PROCEEDINGS IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDG MENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. HDFC BANK LTD . REPORTED AS 366 ITR 505 (BOM.). THE LD. AUTHORISED REPRESENTATIVE FUR THER SUBMITTED THAT THE PUNE BENCH OF THE TRIBUNAL HAS BEEN CONSISTENT LY DECIDING THIS ISSUE IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE AFORESAID JU DGMENT OF HONBLE JURISDICTIONAL HIGH COURT. 3 ITA NO.2027/PN/2014 5. SHRI RAJEEV KUMAR REPRESENTING THE DEPARTMENT VEHE MENTLY SUPPORTED THE FINDINGS OF THE CIT. THE LD. DEPARTMENTAL R EPRESENTATIVE FAIRLY ADMITTED THAT THE ISSUE RAISED IN THE PRESENT APPE AL HAS BEEN CONSIDERED AND ADJUDICATED BY THE HONBLE BOMBAY HIGH C OURT IN THE CASE OF CIT VS. HDFC BANK LTD., (SUPRA). 6. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESEN TATIVE OF RIVAL SIDES AND HAVE PERUSED THE IMPUGNED ORDER. THE SOLITARY ISSUE RAISED BY THE ASSESSEE IN THE APPEAL IS WITH RESPECT TO DISALLOWANCE OF THE CLAIM OF EXPENDITURE OF RS.10,10,760/- MADE ON ACCOUNT OF AMORTIZAT ION PREMIUM PAID FOR ACQUIRING HTM SECURITIES. WE FIND THAT THE ISSUE R ELATING TO AMORTIZATION OF PREMIUM PAID ON INVESTMENTS HELD TO MATUR ITY (HTM) WAS CONSIDERED BY THE HONBLE BOMBAY HIGH COURT. ONE O F THE QUESTION RAISED BEFORE THE HONBLE COURT IN THE CASE OF CIT VS. HD FC BANK LTD. (SUPRA) WAS : (C) WHETHER THE INCOME-TAX APPELLATE TRIBUNAL IS R IGHT IN LAW IN HOLDING THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION WITH RESPECT TO THE DIMINUTION IN VALUE OF THE INVESTMENT AND AMORTIZATION OF PREMIUM ON INVESTMENT HELD TO MATURITY ON THE GROUND OF MANDATE BY THE RBI GUIDEL INES THEREBY IGNORING THE DECISION OF THE SUPREME COURT IN THE CASE OF SOUTHERN TECHNOLOGIES LTD. VS. JOINT CIT [2010] 320 ITR 577 (SC) ? 6.1 THE HONBLE HIGH COURT WHILE ANSWERING THE QUESTION IN AFFIRMATIVE HELD AS UNDER: AS FAR AS QUESTION (C) IS CONCERNED, WE FIND THAT AN I DENTICAL QUESTION OF LAW WAS FRAMED AND ANSWERED IN FAVOUR OF THE ASSESSEE BY THIS COURT IN ITS JUDGMENT DATED JULY 4, 2014, IN INCOME TAX APPEAL N O.1079 OF 2012, CIT V. LORD KRISHNA BANK LTD. (NOW MERGED WITH HDFC BANK LT D.) [2014] 366 ITR 416 (BOM.). MR. SURESH KUMAR FAIRLY STATED THAT QUESTI ON (C) REPRODUCED ABOVE IS COVERED BY THE SAID ORDER. IN VIEW THEREOF, WE AR E OF THE VIEW THAT EVEN QUESTION (C) DOES NOT RAISE ANY SUBSTANTIAL QUESTION OF L AW THAT REQUIRED AN ANSWER FROM US. 4 ITA NO.2027/PN/2014 6.2 THUS, IN VIEW OF THE AFORESAID JUDGMENT RENDERED IN THE CASE OF HDFC BANK LTD. (SUPRA), WE ACCEPT THE PLEA OF THE ASSESS EE. THE IMPUGNED ORDER IS SET ASIDE AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON WEDNESDAY, THE 25 TH DAY OF MAY, 2016. SD/- SD/- ( R.K.PANDA ) ( VIKAS AWASTHY ) ACCOUNTANT MEMBER JUDICIAL MEMBER IQ.KS PUNE ; # DATED : 25 TH MAY, 2016. LRH'K ( )'+ , / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. CIT (A) - I I , PUNE 4. 5. 6. CIT-II, PUNE ' *, *, IQ.KS / DR, ITAT, B PUNE; / GUARD FILE. / BY ORDER , ' //TRUE COPY// / * / SR. PRIVATE SECRETARY *, IQ.KS / ITAT, PUNE