Assistant Commissioner of Income-Tax, Raichur V. M/s.Singdhanur Urban Co-opewrative Bank Ltd., Bellary

ITA 2294/BANG/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2172 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 23-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: S V RAVISHANKAR
• Keywords: Revised return
• Section: 143(3); 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA. NO. 2294 /BANG/201 6 (ASSESSMENT YEAR: 20 0 9 - 10 ) ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1, RAICHUR . .APPELLANT VS. M/S. SINDHANUR URBAN CO - OPERATIVE BANK LTD., BLOCK NO.10, MOKA ROAD, GANDHI NAGAR, BELLARY - 583 001 RESPONDENT. PAN AACAS9025L ASSESSEE BY: SHRI S.V. RAVISHANKAR, ADVOCATE. REVENUE BY: S MT. R. PREMI, JCIT (D.R) DATE OF HEARING : 19.11 .2019 DATE OF PRONOUNCEMENT : 27 .11 .2019 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), GULBARGA PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 ITA NO. 2294/BANG/2016 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CO - OPERATIVE BANK REGISTERED UNDER KARNATAKA CO - OPERATIVE SOCIETY AND BANKING REGULATION ACT AND FILED THE RETURN OF INCOME ON 7.9.2009 WITH TOTAL INCOME OF RS.91,98,170. SUBSEQUENTLY, THE CAS E WAS SELECTED FOR SCRUTINY AND NOTICE UND ER SECTION 143(2) OF THE ACT ALONG WITH QUESTIONNAIRE WAS ISSUED . IN RESPONSE TO NOTICE, THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FURNISHED THE DETAILS AND PRODUCED BOO KS OF ACCOUNT S, BILLS AND VOUCHERS. THE ASSESSING OFFICER FOUND THAT THERE ARE ACCUMULATED LOSSES OF AMALGAMATION ALONG WITH THE OTHER BANKS IN THE SAID ASSESSMENT YEAR . WHEREAS THE ASSESSEE HAS CLAIMED ONLY 1/5 TH OF LOSS OF RS.1,20,10,773 AND THE BA LANCE TO BE INTENDED TO BE 3 ITA NO. 2294/BANG/2016 SET OFF FOR 4 A SSESSMENT Y EARS AGAINST THE PROFIT EARNED . THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS ON 28.11.2011 AND 18.11.2011 EMPHASISING THAT AS PER THE PRO VISIONS OF SECTION 72AB (1 ) OF THE INCOME TAX ACT, THE ASSESSEE BANK IS ENTITLED TO CLAIM THE FULL AMOUNT OF LOSS OF RS.6,00,53,872 AS AGAINST 1/5 TH CLAIMED . THE ASSESSING OFFICER WA S SATISFIED WITH RESPECT TO DETERMINATION OF LOSS BUT IS OF THE OPINION THAT SINCE THE ASSESSEE HA S NOT CLAIMED SUCH LOSS IN THE RETURN OF INCOME FILED ON 7.9.2009 OR BY FILING REVISED RETURN . HENCE ASSESSING OFFICER REJECTED THE ASSESSEE'S CLAIM OF COMPLETE LOSS IN THE ASSESSMENT PROCEEDINGS AND PASSED ORDER UND ER SECTION 143(3) OF THE ACT DT.30.11.2 011. AGGRIEVED BY THE A.OS ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS). ON THE DISPUTED ISSUE WITH RESPECT TO SET OFF OF ACCUMULATED LOSS ON AMALGAMATION , LEARNED CIT (APPEALS) DEALT AT PAGE 2 PARA 4.1 TO 4.12 OF THE ORDER AND RELYING ON THE CBDT CIRCULAR , JUDICIAL DECISIONS AND FINALLY OBSERVED AT PAGES 6 & 7 OF THE ORDER WHICH READ AS UNDER : 4 ITA NO. 2294/BANG/2016 AGGRIEVED BY THE CIT (APPEALS) ORDER, THE REVENUE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE LEARNED CIT(APPEALS) HAS ERRED IN GRANTING RELIEF OF SET OFF OF LOSSES OF EARLIER YEARS AGAINST THE CURRENT YEAR INCOME IRRESPECTIVE OF THE FACT T HAT THE ASSESSEE HAD NEITHER CLAIMED TOTAL LOSS IN THE RETURN OF INCOME OR BY FILING REVISED RETURN OF INCOME AND RELIED ON THE PROVISIONS OF SECTION 72AB AND 5 ITA NO. 2294/BANG/2016 JUDICIAL DECISIONS AND PRAYED FOR ALLOWING THE REVENUES APPEAL. CONTRA, THE LEARNED AUTHORISED REPRESENTATIVE RELIED ON THE ORDERS OF LEARNED CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTED ISSUE ENVISAGED BY LD. DR IN RESPECT OF LEARNED CIT(APPEALS) GRANTING RELIEF OF ENTIRE SET OFF OF LOSSES OF EARLIER YEARS AGAINST THE CURRENT YEAR INCOME. WE FIND THAT THE ASSESSEE HAS MADE SUBMISSIONS ON THE SET OFF CLAIM BEFORE THE ASSESSING OFFICER BUT WAS DENIED IN THE ASSESSMENT PROCEEDINGS . WHEREAS THE LEARNED CIT(APPEALS) HAS GRANTED RELIEF WITHOUT VERIFYING THE CLAIM OF THE ASSESSEE. AS RIGHTLY OBSERVED BY LEARNED CIT (APPEALS), THE CLAIM MADE BY THE ASSESSEE COULD BE ENTERTAINED BY APPELLATE AUTHORITIES. WE CONSIDERING THE SUBMISSIONS OF LD. DR A ND JUDICIAL DECISIONS RELIED BY THE REVENUE ARE OF THE OPINION THAT THE QUANTUM OF DEDUCTION CLAIMED REQUIRE S VERIFICATION. ACCORDINGLY WE RESTORE ENTIRE DISPUTED ISSUE FOR LIMITED PURPOSE TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF QUANTUM OF CLAIM MADE BY THE ASSESSEE. 6. IN THE RESULT, THE REVENUES APPEAL IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 T H NOV., 2019. S D / - S D / - ( B.R. B ASKARAN ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 7 .11. 2019. *REDDY GP 6 ITA NO. 2294/BANG/2016 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE