ACIT 2 (1), Ujjain V. M/s Jila Sahakari Kendriya Co Operative Bnak Maryadit Rajgarh (Biora), Rajgarh

ITA 282/Ind/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7827 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-10-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 04-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Section: 143(3); 142(1); 201

Judgement Text

JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 282/IND/2018 ASSESSMENT YEAR 2012-13 REVENUE BY SMT. ASHIMA GUPTA, CIT ASSESSEE BY S HRI VAIBHAV JAIN , CA DATE OF HEARING 1 0 . 1 0 . 201 9 DATE OF PRONOUNCEME NT 14 . 10. 201 9 O R D E R PER MANISH BORAD, AM. THE ABOVE CAPTIONED APPEAL IS FILED AT THE INSTANCE OF REVENUE PERTAINING TO ASSESSMENT YEAR 2012-13 AND IS DIRE CTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS), (IN SHORT LD.CIT(A)], UJJAIN DATED 31.01.2018 WHICH IS ARIS ING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(IN SHOR T THE ACT) DATED 09.03.2015 FRAMED BY ACIT-2(1), UJJAIN. ACIT - 2(1 ), UJJAIN VS. JILA SAHAKARI KENDRIYA CO-OPERATIVE BANK MARYADIT, RAJGARH (BIAORA), M.P. ( REVENUE ) (RESPONDENT ) PAN AAAAJ4127E JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 2 2. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE R ECORDS ARE THAT THE ASSESSEE IS A CO-OPERATIVE BANK DERIVING INCOM E FROM BANKING BUSINESS. RETURN OF INCOME WAS FILED ON 30.09.2012 DECLARING NIL INCOME. CASE SELECTED FOR SCRUTINY THROUGH CASS FO LLOWED BY SERVING OF NOTICES U/S 143(2)AND 142(1) ALONG WITH THE QUESTIONNAIRES. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE LD. A.O MADE FOLLOWING ADDITIONS ASSESSING THE INCO ME AT RS.12,16,94,998/-:- TOTAL INCOME AS PER RETURN RS. NIL ADDITION: (I) INTEREST INCOME NOT OFFERED FOR TAXATION RS. 4,08,766/- (AS DISCUSSED ABOVE IN PARA 3) (II)DISALLOWANCE OUT OF INTEREST EXPENSES RS.1, 10,98,490/- (AS DISCUSSED ABOVE IN PARA 4) (III)INCOME CALCULATED AS PER PARA 5 RS .5,35,51,742/- (IV) CESSATION OF LIABILITY AS PER PARA 6 R S.5,66,36,000/- TOTAL ADDITION RS.12 ,16,94,998/- TOTAL ASSESSED INCOME RS.12,16,94,998/- ROUND OFF TO RS. (U/S 288A) RS.12,16,95,000/- 3. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE LD. C IT(A) AND PARTLY SUCCEEDED. 4. NOW THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL RAISING FOLLOWING GROUNDS OF APPEAL; JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 3 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS.4,08,7 66/- U/S 36(I)(VIIA) OF THE IT ACT. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS.4,34,2 2,000/- ON ACCOUNT OF CESSATION LIABILITY. 5. APROPOS GROUND NO.1 FOR THE ADDITION OF RS.4,08, 766/- U/S 36(I)(VIIA) OF THE ACT FOR THE INTEREST INCOME ON I NCOME TAX REFUND. LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF LD. A.O WHEREAS THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. A.O MADE THE ADDITION FOR THE SAME AMOUNT TWICE IN THE ASSESSMENT ORDER AND LD. CIT(A) HAS RIGHTLY DELETED THE ADDITION. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE REVENUE HAS CHALLENGED THE D ELETION OF ADDITION OF RS.4,08,766/- MADE U/S 36(I)(VIIA) OF T HE ACT. WE OBSERVE THAT THE ALLEGED AMOUNT RELATES TO INTEREST RECEIVED ON INCOME TAX REFUND WHICH WAS NOT OFFERED TO TAX. WH ILE FRAMING THE ASSESSMENT LD. A.O MADE THE ADDITION FOR THE ALLEGE D AMOUNT IN PARA 3. THEREAFTER IN PARA 5 LD. A.O AGAIN MADE TH E ADDITION FOR THE SAME AMOUNT THEREBY MAKING DOUBLE ADDITION. THI S IS CLEARLY A CASE OF THE DOUBLE ADDITION AND LD. CIT(A) HAS RIGH TLY APPRECIATED THE FACT AND DELETED THE ADDITION OF RS.4,08,766/-. NO INTERFERENCE JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 4 IS CALLED FOR IN THE FINDING OF LD. CIT(A) AND GROU ND NO.1 OF THE REVENUE STANDS DISMISSED. 7. APROPOS GROUND NO.2 RELATING TO ADDITION OF RS.4 ,34,22,000/- U/S 41(1) OF THE ACT ON ACCOUNT OF CESSATION OF LIA BILITY. 8. LD. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY ARGUE D SUPPORTING THE ORDER OF LD. A.O. PER CONTRA LD. COU NSEL FOR THE ASSESSEE SUBMITTED THAT THE ALLEGED LIABILITY IS FO R SUNDRY CREDITORS OF RS.4,34,22,000/- WHICH IS SUBSEQUENTLY PAID/ADJU STED DURING THE FINANCIAL YEAR 2012-13. LD. A.O MADE THE ADDIT ION WITHOUT EXAMINING THE DETAILS EVEN WHEN MOST OF THE SUNDRY CREDITORS FALLING UNDER THE ALLEGED ADDITION OF CESSATION OF LIABILITY WERE CURRENT LIABILITIES PERTAINING TO ASSESSMENT YEAR 2 011-12 AND NOT OLD LIABILITIES AS ALLEGED BY THE LD. A.O. ALL THE DETAILS IN SUPPORT OF THE CONTENTION THAT THE LIABILITIES HAVE BEEN ADJUS TED IN SUBSEQUENT YEAR HAVE BEEN RIGHTLY ACCEPTED BY LD. CIT(A) THERE BY DELETING THE ADDITION OF RS.4,34,22,000/-. 9. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THROUGH GROUND NO.2 REVENUE HAS CHALLENGED THE DELETION OF ADDITION OF RS.4,34,22,000/- BY LD. CIT(A) WHICH WAS JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 5 MADE BY LD. A.O ON ACCOUNT OF CESSATION OF LIABILIT Y U/S 41(1) OF THE ACT. LD. CIT(A) DELETED THIS ADDITION GIVING FOLLO WING FINDINGS OF FACT; GROUND NO.6:- THROUGH THIS GROUND OF APPEAL THE APPELLANT HAS CH ALLENGED THE ADDITION OF RS.5,66,36,000/- ON ACCOUNT OF CESS ATION OF LIABILITY. THE AO MADE THE ADDITION ON THE GROUND THAT THE SAME AM OUNT OF BALANCE IS APPEARING IN THE CASE OF SOME CREDITORS SINCE 31.03 .2010. THE AO TREATED THE ABOVE CREDITORS AS BOGUS LIABILITY ONLY. THE AP PELLANT SUBMITTED THAT THE LIABILITY IN RESPECT OF THE FOLLOWING CREDITORS HAS BEEN ADJUSTED SUBSEQUENTLY. THE DETAILS ARE AS UNDER :- SR NAME PARTICULARS DATE OF AMOUNT DATE OF. NO OF ORIGINAL ENTRY (RS.) ADJUSTMENT BRANC H IH.O I H.O MADANLAL PUSHPAD 31/03/201 0 0.26 13/10/2012 2 H.O RAMESH TIWARI 31/03/201 0 0.25 25/0512012 3 , H.O KHAREEF PROTSAHAN RASHI 31/03/2010 0.87 13/10/2012 4 H.O GYASIR AM YADAV 31/03/2010 2.48 13/ I 0/20 12 5 H.O NARAYAN SINGH YADAV 31/03/20 I0 2.12 13/10/2012 6 H.O KAISHAR SINGH NAGAR 21/11/2011 0.81 26/10/2012 7 H.O L.N SAHOO 06/01/2012 0.39 09/05/2012 8 H.O R.L NAGAR 16/03/2012 1.77 09/05/2012 9 H.O PRATIS VYAJ PROTSA HAN 31/03/2012 16.13 31 / 08/2012 RASHI JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 6 10 H.O RAJYA SANGH VYAJ 10-1 I 31/03/2012 22.00 19/11/2012 11 H.O DAAM DUPAT YOJANA 31/03/2012 367.77 03/1212012 12 H.O L.C.O ANTAR RASHI 31/01/2012 16.91 28/09/2012 13 BODA MADH YAMIK VIDHYALAY 24/11/2009 0.16 BODA ' 14 BODA PREM SINGH RAJPUT 0.10' 15 BODA SARDAR SINGH 0.62 16 BODA LILA BAI 0.61 - 17 KURA PRAST AVIT DUGDH SAMI TI 08/02/2012 0.45 09/04/2012 WAR GILAK HEDI 18 KURA PRAST AVIT DUGDH SAMI TI 16/02/2012 027 18/05/2012 WAR MANG ALPUR 19 KURA PRAST AVIT DUGDH SAMI TI 19112/20 11 0.25 26'04/2012 WAR RAWA TPURA TOTA L 434.22 FROM THE ABOVE, IT IS CLEAR THAT THE LIABILITY TO T HE EXTENT OF RS4,34,22,OOO/- CANNOT BE CONSIDERED AS A BOGUS LIABILITY. THE AO I S NOT JUSTIFIED IN TREATING THE LIABILITY OF RS4,34,22,OOO/-- AS CEASED LIABILITY U/S. 41 (1 )(A) OF THE LT. ACT. THE APPELLANT HAS MADE THE PAYMENT OF ABOVE LIABILITY S UBSEQUENTLY. THE APPELLANT JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 7 HAS NOT FURNISHED ANY DETAILS REGARDING THE REMAINI NG LIABILITIES OF RS.1,32, 14,000/-. THEREFORE, THE ADDITION TO THE EXTENT OF RS.1, 32,14,000/- (RS.5,66,36,000 RS. 4,34,22,000) IS CONFIRMED . THE APPELLANT WILL GET THE RELIEF OF RS.4,34,22,OOO/-. THE APPEAL ON THIS GROUND IS PARTLY ALLOWED . 10. FROM PERUSAL OF THE ABOVE FINDING, WE FIND THA T VARIOUS SUNDRY CREDITORS INCLUDED IN THE LIST OF RS.4,34,22,000/- STANDS ADJUSTED/PAID DURING THE FINANCIAL YEAR 2012-13. I T IS ALSO SURPRISING TO NOTE THAT THE LD. A.O MADE THE ADDITI ON WITHOUT EXAMINING THE DETAILS ABOUT THE PERIOD SINCE THE SU NDRY CREDITORS WERE OUTSTANDING SINCE EXCEPT THE PARTIES MENTIONED IN NO. 1 TO 5 AND NO.13 ALL THE REMAINING BALANCES WERE FOR THE Y EAR UNDER APPEAL I.E. FINANCIAL YEAR 2011-12 WHICH WERE REGUL AR ACCOUNTS OF SUNDRY CREDITORS WHICH BY NO CANNON COULD HAVE BEEN ADDED U/S 41(1) OF THE ACT AS CESSATION OF LIABILITY. THE DET AILS FILED BY THE ASSESSEE ABOUT THE ADJUSTMENT OF SUNDRY CREDITORS I N SUBSEQUENT PERIOD HAS NOT BEEN DISPUTED BEFORE US. THE ALLEGED AMOUNT CANNOT BE ADDED U/S 41(1) OF THE ACT FOR CESSATION OF LIAB ILITY. NO INTERFERENCE IS THEREFORE CALLED FOR IN THE FINDING OF LD. CIT(A) AND THUS GROUND NO.2 OF THE REVENUE APPEAL STANDS DISMI SSED. JILA SAHAKARI KENDRIYA CO-OPERATIVE BANKMARYADIT ITA NO.282/IND/2018 8 15. IN THE RESULT APPEAL OF THE REVENUE STANDS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 14.10.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 14 OCTOBER 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE