ITO, Kota V. KOTA SAHAKARI BHOOMI VIKAS BANK LTD., Kota

ITA 263/JPR/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6151 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 06-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONUM RAI
• Keywords: Wrong claim; Bad and doubtful debts
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH HKKXPAN] YS[KK L NL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI BHAGCHAND, A M VK;DJ VIHY LA- @ ITA NO. 263/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2008-09 THE ITO, WARD-1(2), KOTA. CUKE VS. KOTA SAHKARI BHOOMI VIKASH BANK LTD., PLOT NO. 3, BEHIND INCOME TAX OFFICE, RAWATBHATA RAOD, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAAK 0720 G VIHYKFKHZ@ APPELL ANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI VIPUL JAIN (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SMT. POONUM RAI (DCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 28/05/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 30/05/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF DATED 13.01.2017 OF CIT (A), KOTA ARISING FROM THE PENALT Y ORDER PASSED U/S 271(1)(C) OF THE I.T. ACT FOR A.Y. 2008-09. THE REV ENUE HAS RAISED THE FOLLOWING GROUND AS UNDER:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . CIT(A) HAS ERRED IN:- (I) DELETING PENALTY OF RS. 22,68,548/- IMPOSED U/S 271(1)(C) OF THE ACT; ITA NO. 263/JP/2017 ITO VS. KOTA SAHKARI BHOOMI VIKAS BANK LTD., 2 (II) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITION AL GROUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. 2. WE HAVE HEARD THE LD. DR AS WELL AS THE LD. AR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. IN THE ASSESSMENT COMPLETED U/S 143(3) OF THE ACT THE AO MADE FOLLOWING DISALLOWANC ES:- (I) PENALTY INTEREST RS. 12,10,219/- (II) PROVISION FOR BAD DEBTS AND BAD INTEREST RS. 73,51,000/- (III) DEDUCTION FOR TDS RS. 19,803/- (IV) RECOVERY PROMOTION SCHEME RS. 19,68,019/- IN THE QUANTUM APPEAL ONLY TWO ADDITIONS WERE SUSTA INED NAMELY PROVISION FOR BAD DEBTS AND BAD INTEREST OF RS. 73, 51,000/- AND DEDUCTION FOR TDS OF RS. 19,803/-. THE AO INITIATED THE PROCEEDINGS FOR LEVY OF PENALTY U/S 271(1)(C) AND LEVIED THE PENALT Y AGAINST THESE TWO ADDITIONS VIDE ORDER DATED 19.03.2015. THE ASSESSEE CHALLENGED THE LEVY OF PENALTY BEFORE THE LD. CIT(A). THE LD. CIT( A) DELETED THE PENALTY BY CONSIDERING VARIOUS DECISIONS AND HELD THAT THOU GH ADDITION ON ACCOUNT OF CLAIM OF PROVISIONS FOR BAD DEBT AND BAD INTEREST WAS CONFIRMED BY THE LD. CIT(A) HOWEVER, THE SAME DID N OT MAKE IT FIT CASE FOR IMPOSITION OF PENALTY U/S 271(1)(C) OF THE ACT AS THE ASSESSEE HAS DISCLOSED ALL THE RELEVANT FACTS AND PARTICULARS. W E FURTHER NOTE THAT THE ASSESSEE HAS FILED THE RETURN OF INCOME SHOWING LOS S OF RS. ITA NO. 263/JP/2017 ITO VS. KOTA SAHKARI BHOOMI VIKAS BANK LTD., 3 13,71,14,852/- AND EVEN AFTER THE ADDITIONS MADE BY THE AO THE TOTAL INCOME OF THE ASSESSEE REMAINED NEGATIVE. THERE IS NO DISPUTE THAT THE ASSESSEE IS OTHERWISE ELIGIBLE FOR DEDUCTION U/S 80 P OF THE ACT HOWEVER, DUE TO THE FACT THAT THE ASSESSEE HAS DECLARED LOSS IN THE RETURN OF INCOME THE SAID CLAIM OF DEDUCTION U/S 80P WAS NOT MADE BY THE ASSESSEE. THE LD. AR OF THE ASSESSEE HAS POINTED OU T IN THE EARLIER ASSESSMENT YEAR THE ASSESSEE CLAIMED U/S 80P OF THE ACT WHICH WAS ALLOWED AND EVEN IF AFTER SOME DISALLOWANCES MADE B Y THE AO, THE SAME WOULD NOT RESULT TO ADDITION OF THE TOTAL INCO ME AS THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P OF THE ACT. 3. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD WHEN THE ASSESSEE IS PRIMARY CO- OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK THEN, THE B ENEFIT OF SECTION 80P OF THE ACT IS AVAILABLE TO THE ASSESSEE AND THE REFORE IF THE AO HAS DISALLOWED THE CLAIM OF PROVISIONS FOR BAD DEBTS AN D BAD INTEREST THE SAME WILL NOT RESULT AN ENHANCEMENT OF THE TAXABLE INCOME OF THE ASSESSEE. EVEN OTHERWISE IT IS CLAIM OF THE ASSESSE E WHICH MAY NOT BE ELIGIBLE AS PER THE PROVISIONS OF SECTION 36(1)(VII A) OF THE ACT HOWEVER THE SAME WILL NOT AMOUNT TO FURNISHING INACCURATE P ARTICULARS OF INCOME OR CONCEALMENT OF PARTICULARS OF INCOME ATTRACTING THE PROVISIONS OF ITA NO. 263/JP/2017 ITO VS. KOTA SAHKARI BHOOMI VIKAS BANK LTD., 4 SECTION 271(1)(C) OF THE ACT. THE LD. CIT(A) HAS DE LETED THE PENALTY BY FOLLOWING VARIOUS DECISIONS OF THIS TRIBUNAL AS WE LL AS OF THE HONBLE SUPREME COURT IN CASE OF CIT VS. RELIANCE PETROPRODUCTS PVT. LTD. 322 ITR 158 . WE FURTHER NOTE THAT THE LD. CIT(A) HAS CONFIRMED THE LEVY OF PENALTY AGAINST THE ADDITION MADE BY THE AO ON ACCOUNT OF TDS CLAIM OF RS. 19,803/- THEREFORE, ONCE THE ASSESSEE IS ELIGIBLE FOR THE BENEFIT OF SECTION 80P THEN CLAIM OF PROVISIONS FOR BAD DEBT AND BAD INTEREST CANNOT BE HELD TO BE A BOGUS CLAIM AMOUNTI NG TO FURNISHING INACCURATE PARTICULARS OF INCOME OR CONCEALMENT OF PARTICULARS OF INCOME. ACCORDING, WE DO NOT FIND ANY ERROR OR ILLE GALITY IN THE ORDER OF THE LD. CIT(A) IN DELETING THE PENALTY LEVIED U/S 2 71(1)(C) OF THE IT ACT. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/05/2018. SD/- SD/- HKKXPAN FOT; IKY JKO (BHAGCHAND) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30/05/2018. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO, WARD-1(2), KOTA. 2. IZR;FKHZ@ THE RESPONDENT- KOTA SAHKARI BHOOMI VIKASH BANK LTD ., KOTA. ITA NO. 263/JP/2017 ITO VS. KOTA SAHKARI BHOOMI VIKAS BANK LTD., 5 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 263/JP/2017} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR