The ACIT, Circle-2, Surat V. M/s. Surat National Co.Operative Bank Ltd., Surat

ITA 2840/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0263 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2016
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 17-10-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 04-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SEWAK
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S.S. GODARA, JUDICIAL MEMBER) ITA. NO: 2840/AHD/2013 (ASSESSMENT YEAR: 2007-08) ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-2, SURAT V/S M/S. SURAT NATIONAL CO- OPERATIVE BANK LTD., 3/4016, NAVNIDHI KARWA ROAD, SURAT-395003 (APPELLANT) (RESPONDENT) PAN: AAAAS5702J APPELLANT BY : SHRI SHIVA SEWAK, SR. D.R. RESPONDENT BY : WRITTEN SUBMISSION. ( )/ ORDER DATE OF HEARING : 17 -10-201 6 DATE OF PRONOUNCEMENT : 20-10-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-II, SURAT DATED 23.09.2013 PERTAINING TO A.Y. 2007-08. ITA NO. 2840 /AHD/2013 . A.Y. 2007-08 2 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD. C IT(A) ERRED IN CANCELLING THE PENALTY LEVIED BY THE A.O. 3. A PERUSAL OF THE WRITTEN SUBMISSIONS OF THE ASSESSE E SHOWS THAT THE TRIBUNAL IN ITA NO. 3242/AHD/2010 VIDE ORDER DATED 08.07.2013 HAS DELETED ALL THE ADDITIONS AND SET ASIDE THE MATTER TO THE ASSESSING OFFICER ON ONE ISSUE. FOLLOWING ISSUES WERE CONSIDERED BY T HE TRIBUNAL AND DECIDED ACCORDINGLY. (4) (I) DEPRECIATION ALLOWANCE IN RESPECT OF DIMINU TION IN VALUE OF SECURITIES HELD BY THE BANK WHICH WERE HELD AS AFS (AVAILABLE FOR S ALE) (II) THE ASSESSING OFFICER HAD DISALLOWED THE CLAIM ON THE GROUND THAT THIS IS A PROVISIONS AND NOT CRYSTALLIZED. THE LEARNED COMMIS SIONER OF INCOME-TAX (APPEALS) IN PARA 6 (PAGE 4) OF THE ORDER DIRECTED THE ASSESSING OFFICER TO VERIFY SCRIPTWISE MARKET PRICE AND COST PRICE, DETERMINE T HE DEPRECIATION AND ALLOW DEPRECIATION/APPRECIATION AS PER LAW. (5) DISALLOWANCE OF CLAIM FOR PAYMENT MADE FOR WEL FARE OF THE MEMBER. VIDE PARA 10 ( PAGES 5-6) OF ITS ORDER, THE TRIBUNA L HAS ALLOWED THE ABOVE GROUND. (6) DISALLOWANCE OF CONTRIBUTION TO URBAN BANK CRE DIT EQUALIZATION FUND OF RS. 5,20,609/-. BY PARA 14 (PAGE 7), THE TRIBUNAL ALLOWED TH E ABOVE GROUND OF THE ASSESSEE. (7) PAYMENT OF EDUCATION FUND RS. 3,00,000/-. BY PARA 16 (PAGE 7-8), THE TRIBUNAL HAS ALLO WED THE ABOVE GROUND. 4. A PERUSAL OF THE ABOVE SHOWS THAT, EXCEPT FOR THE F IRST ISSUE, ALL THE ADDITIONS/DISALLOWANCES HAVE BEEN DELETED BY THE TR IBUNAL. TO THAT EXTENT, ITA NO. 2840 /AHD/2013 . A.Y. 2007-08 3 NO PENALTY IS LEVIABLE U/S. 271(1)(C) OF THE ACT. H OWEVER, ON THE ISSUE WHICH IS SET ASIDE TO THE FILES OF THE A.O., WE SET ASIDE THE PENALTY ALSO TO THE FILES OF THE A.O. TO BE DECIDED AFRESH AFTER CONSIDERING THE QUANTUM PROCEEDINGS IN THE LIGHT OF THE DIRECTIONS OF THE TRIBUNAL. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS A LLOWED IN PART FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 20 - 10- 2 016. SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD