The ACIT, Circle-5(2), Ahmedabad V. Saraspur Nagrik Co.-Op. Bank Ltd., Ahmedabad

ITA 2436/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8500 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 27-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH BEFORE: SHR I S. S. GODARA , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE ACIT, CIRCLE - 5(2), AHMEDABAD (APPELLANT) VS SARASPUR NAGRIK CO - OP. BANK LTD. 1, DARSHAN SOCIETY, STADIUM CIRCLE, NR. COMMERCE SIX ROAD, NAVRANGPURA, AHMEDABAD - 380009 PAN: AANFS1529H (RESPONDENT) RE VENUE BY : S H RI PRASOON KABRA , SR. D . R. ASSESSEE BY: S H RI S.N. DIVETIA , A.R. DATE OF HEARING : 27 - 03 - 2 018 DATE OF PRONOUNCEMENT : 19 - 04 - 2 018 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2010 - 11 , ARIS ES FROM ORDER OF THE CIT(A) - 5 , AHM EDABAD DATED 18 - 07 - 2016 , IN PROCEEDINGS UNDER SECTION 271(1 ) (C) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVENUE HAS R AISED FOLLOWING GROUNDS OF APPEAL: - (1) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE PENALTY LEVIED U/S.271(1)(C) OF THE ACT OF RS. 10,40,715/ - ON ACCOUNT OF FURNISHING INACCURATE PARTICULARS BY THE ASSESSES IN RESPECT OF ADDITION OF AC CRUED INTEREST ON NPAS. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. I T A NO . 2436 / A H D/20 16 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 2436 /AHD/20 16 A.Y. 2010 - 11 PAGE NO ACIT VS. SARASPUR NAGRIK CO - OP. BANK LTD. 2 (3) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. CIT (A) MAY BE SET ASIDE AND THE ORDER OF THE ASSESSING OFFICE R BE RESTORED TO THE ABOVE EXTENT. 3. THE BRIEF FACT OF THE CASE IS THAT THE ASSESSING OFFICER HAS LEVIED PENALTY U/S. 271(1)(C) OF THE ACT ON DEEMED ADDITION OF RS. 33,68, 0 11/ - MADE ON ACCOUNT OF UNDISCLOSED INCOME AS ACCRUED INTEREST ON NON - PERFORM ING ASSETS. 4. AGGRIEVED ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) WHO HAS DELETED THE PENALTY OF RS. 10,40,000/ - STATING THAT SEVERAL COURTS ARE OF THE OPINION THAT ACCRUED INTEREST FOR NPA IS NOT INCOME UNLESS IT IS ACTUALLY REALIZED THEN THE QUESTI ON OF CONCEALMENT OF INCOME DOES NOT ARISE. DURING THE COURSE OF PENALTY PROCEEDINGS BEFORE US, THE LD. COUNSEL HAS SUBMITTED THAT THE CO - ORDINATE BENCH OF THE ITAT VIDE ITA NO. 508/AHD/2014 IN THE CASE SARASPUR NAGRIK C O - OPERATIVE BANK LTD. VS. ACIT (OSD ) DATED 24/04/2017 IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2010 - 11 HAS DELETED THE QUANTUM ADDITION ON THE BASIS OF WHICH PENALTY WAS LEVIED BY THE ASSESSING OFFICER. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE SAME. 5. WE HAVE GONE THROUGH THE ORDER OF THE CO - ORDINATE BENCH AS MENTIONED SUPRA AND FIND THAT THE QUANTUM ADDITION IN RESPECT OF ACCRUED INTEREST ON NPA HAS BEEN SET ASIDE . IN ADDITION TO ABOVE, WE ARE ALSO INCLINED WITH T H E VIEW OF THE LD. CIT(A) THAT THE ACCRU ED INTEREST FOR NPA IS NOT INCOME WHICH IS NOT ACTUALLY REALIZED, THEREFORE, THE QUESTION OF CONCEALMENT OF INCOME DOES NOT ARISE. IN THE LIGHT OF THE DECISION OF THE CO - ORDINATE BENCH AS SUPRA W E CONSIDER THAT THE PENALTY IN THIS C A SE HAS BECOME INFRUCT UOUS , THEREFORE, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PR ONOUNCED IN THE OPEN C OURT ON 19 - 04 - 201 8 SD/ - SD/ - ( S.S. GODARA ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOU NTANT MEMBER AHMEDABAD : DATED 19 /04 /2018 I.T.A NO. 2436 /AHD/20 16 A.Y. 2010 - 11 PAGE NO ACIT VS. SARASPUR NAGRIK CO - OP. BANK LTD. 3 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,