The Urban Co-Operative Bank Limited, Cuttack V. ITO, Cuttack

ITA 27/CTK/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 4188 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2010
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 27-01-2010
• Court: TRIBUNAL
• Department Lawyers: A K GAUTAM
• Assessee Lawyers: P C SETHI
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE HONBLE SHRI D.K.TYAGI, JUDICIAL MEMBER. /AND HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER . / I.TA.NO . 27/CTK/2010 STAY PETITION NO.1/CTK/2010 / ASSESSMENT YEAR 2006 - 07 THE URBAN CO - OP.BANK LTD., TINIKONIA BAGICHA, CUTTACK AAAAT 0860 E - - - VERSUS - . INCOME - TAX OFFICER, WARD 2 (1), CUTTACK. / A PPELLANT RESPONDENT FOR THE APPELLANT : SHRI P.C.SETHI, AR FOR THE RESPONDENT : SHRI A.K.GAUTAM, DR / ORDER SHRI K.K.GUPTA, ACCOUNTANT MEMBER . IN THE PRESENT APPEAL, THE LEARNED COUNSEL OF THE ASSESSEE HAS RAISED ONLY TWO ISSUES, NAMELY (I) NON - ALLOWANCE OF EXEMPTION U/S.80P OF RS.6,08,04,027 AND (II) ENHANCEMENT OF INCOME TO THE EXTENT OF RS.13,77,108 HOLDING THAT AS PER I NCOME - TAX ACT,1961 PROVISION AGAINST STANDARD ASSETS ARE NOT ALLOWABL E AS DEDUCTION U/S.36(1)(VIIA) AND SUBMITTED THAT BOTH THE ISSUES ARE COVERED IN FAVOUR OF THE ASSESSEE BY DECISIONS OF THE ITAT, CUTTACK BENCH FOR EARLIER YEARS IN ASSESSEES OWN CASE. I N SUPPORT HE PRODUCED THE COPY OF TRIBUNALS ORDER DT.29.6.2004 FOR THE AYS 1996 - 07,1997 - 198 AND 1998 - 99,ORDER DT.29.8.2005 FOR THE AYS 1999 - 2000 AND 2000 - 01, ORDER DT.2.9.2008 FOR THE ASSESSMENT YEAR 2004 - 05, ORDER DT.3.12.08 FOR THE AYS 2002 - 03 AND 2003 - 04 AND ORDER DT.10.12.2008 FOR THE ASSESSMENT YEAR 2005 - 06. 2. HAVING HEARD BOTH PARTIES AND PERUSING THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND ALSO THE DECISIONS OF THE ITAT IN ASSESSEES OWN CASE FOR THE EARLIER YEARS, WE FIND THAT IN THE ASSESS MENT YEAR UNDER CONSIDERATION, THE AUTHORITIES BELOW HAVE DISALLOWED THE CLAIM OF DEDUCTION U/S.80P ON THE GROUND THAT INTEREST INCOME EARNED BY THE ASSESSEE ON INVESTMENT MADE WITH INSTITUTIONS OTHER THAN CO - OP. SOCIETIES IS NOT / I.TA.NO .27/CTK/2010 STAY PETITION NO.1/CTK/2010 2 ALLOWABLE. IN THE DECISION S OF THE ITAT REFERRED TO IN ABOVE PARAGRAPH AS RELIED ON BY THE ASSESSEE, THE TRIBUNAL IN ASSESSEES OWN CASES HAS CONSISTENTLY HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S.80P OF THE ACT. THE LEARNED DR DID NOT DISPUTE THIS FACT AND ALSO HE DID NO T BRING ON RECORD ANY DECISION CONTRARY TO THE DECISIONS OF THE TRIBUNAL REFERRED TO EARLIER. THEREFORE, BEING CONSISTENT WITH THE VIEW TAKEN BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR EARLIER YEARS, WE SET ASIDE THE IMPUGNED ORDERS OF THE AUTHORITIES BELO W AND DIRECT THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE U/S.80P OF THE ACT. 3. AS REGARDS THE SECOND ISSUE I.E., ENHANCEMENT OF INCOME TO THE EXTENT OF RS.13,77,108 HOLDING THAT AS PER INCOME - TAX ACT,1961 PROVISION AGAINST STANDARD ASSETS ARE NOT ALLOWABLE AS DEDUCTION U/S.36(1)(VIIA) , AS THE NAME SUGGESTS ENCOMPASSES THE INCOME FROM THE VERY ASSETS WHICH ARE HELD FOR BANKING THEREFORE WOULD BE PART OF THE INCOME EXEMPT U/S.80P. THIS ISSUE ALSO STANDS COVERED BY THE DECISIONS OF THE TRIBUNAL I N ASSESSEES OWN CASE FOR EARLIER YEARS. NO CONTROVERTING MATERIAL HAS BEEN BROUGHT ON RECORD BY THE REVENUE. 4. IN VIEW OF THE ABOVE, THE GROUNDS RAISED BY THE ASSESSEE STAND ADJUDICATED AS COVERED BY EARLIER DECISIONS OF THE TRIBUNAL IN ASSESSEES OWN CA SE FOR EARLIER YEARS AND ARE ALLOWED. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. 6. STAY PETITION IN CONSEQUENT THERETO IS DISMISSED AS INFRACTUOUS. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 27.07.2010 SD/ SD/ - ( ), D.K.TYAGI JUDICIAL MEMBER (K.K.GUPTA), ACCOUNTANT MEMBER. DATE: 27.07.2010 ( /) H.K.PADHEE SENIOR.PRIVATE SECRETARY. / I.TA.NO .27/CTK/2010 STAY PETITION NO.1/CTK/2010 3 - COPY OF THE ORDER FORWARDED TO : / THE APPELLANT : THE URBAN CO - OP.BANK LTD., TINIKONIA BAGICHA, CUTTACK / THE RESPONDENT : INCOME - TAX OFFICER, WARD 2(1), CUTTACK. THE CIT, THE CIT(A), DR, CUTTACK BENCH GUARD FILE TRUE COPY , BY ORDER , [ ] SENIOR PRIVATE SECRETARY