DY. CIT- AMRAVATI CIRCLE, AMRAVATI V. THE AMARAVATI DISTRICT CENTRAL, AMRAVATI

ITA 29/NAG/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7584 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-06-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 04-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Assessee Lawyers: L S DEWANI
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE S HRI SHAMIM YAHYA (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 29 / NAG/2015 ASSESSMENT Y EAR: 2012 - 13 / THE DEPUTY COMMISSIONER OF INCOME TAX, AMRAVATI CIRCLE, AAYAKAR BHAVAN, AMBA PETH, AMRAVATI - 444601 VS. THE AMARVATI DISTRICT CENTRAL - CO - OPERATIVE BANK LTD., IRWIN SQUARE, CAMP ROAD, AMRAVATI - 444602 PAN : AAAJT0726C (APPELLANT) (RESPONDENT) REVENUE BY : SHRI A.R. NINAWE (SR.DR) ) ASSESSEE BY : SHRI L.S. DEWANI & SHRI K.P. DEWANI ( A DVOCATE ) DATE OF HEARING: 08 /05 /201 8 DATE OF PRONOUNCEMENT: 08 / 05 /201 8 O R D E R PER RAM LAL NEGI, JM THIS IS A RECALLED MATTER. THE REVENUES APPEAL ITA NO. 29/NAG/2015 WAS DECIDED BY THIS BENCH OF THE TRIBUNAL VIDE ORDER DATED 17.06.2016. SUBSEQUENTLY, T HE REVENUE FILED MISCELLANEOUS APPLICATION BEARING MA NO. 21/NAG/2016 WITH A PR AYER TO DECIDE GROUND NO.3 RAISED BY THE REVENUE , WHICH HA D NOT BEEN ADJUDICATED BY THE BENCH WHILE DECIDING THE APPEAL OF THE REVENUE. THE COORDINATE BENCH OF THE TRIBUNAL ALLOWED THE APPLICATION AND RECALLED ITS ORDER DATED 1 7.06.2016 FOR ADJUDICATING THE SAID GROUND. GROUND NO. 3 OF THE APPEAL WHICH REQUIRES ADJUDICATION READS AS UNDER: - 3. ON THE FACTS AND IN THE CIR CUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (APPEALS) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO ADOPT THE RETURNED INCOME OF RS. 13,83,57,280/ - AS AGAINST THE INCOME OF 2 ITA NO. 29 / NAG /201 5 ASSESSMENT YEAR: 20 12 - 13 RS. 15,29,04,950/ - ADOPTED BY THE ASSESSING OFFICER ON THE BASIS OF ORIGINAL R ETURN, DISREGARDING THE FACT THAT THE ASSESSING OFFICER HAD SPECIFICALLY SOUGHT REASONS FOR REVISION TO THE LOWER INCOME AND THE ASSESSEE NEITHER FURNISHED THE REQUIRED REASONS BEFORE THE ASSESSING OFFICER NOR THE CIT (APPEALS). 2. BRIEF FACTS OF THE CA SE ARE THAT THE ASSESSEE BANK FILED ITS E - RETURN OF INCOME FOR THE ASSESSMENT YEAR UNDER CONSIDERATION DECLARING THE TOTAL INCOME OF RS. 12,82,63,748/ - AND AGGREGATE TOTAL INCOME OF RS. 15,29,04,950. THE RETURN WAS PROCESSED U/S 143 (1) OF THE ACT AND THE REFUND OF RS. 16,50,150/ - WAS ADJUSTED AGAINST THE DEMAND FOR THE ASSESSMENT YEAR 2010 - 11. SINCE THE CASE WAS SELECTED FOR SCRUTINY THE AO ISSUED NOTICE U/S 143 (2) AND 142 (1) AND IN RESPONSE THEREOF THE AUTHORIZED REPRESENTATIVE ATTENDED THE PROCEEDINGS FROM TIME TO TIME. THE ASSESSEE BANK ALSO FILED REVISED RETURN DECLARING THE TOTAL INCOME OF RS. 13,83,57,280/ - . AFTER HEARING THE ASSESSEE THE AO MADE ADDITION OF RS. 1,00,00,000/ - ON ACCOUNT OF PROVISIONS ON NPA AND RS. 24,94,46,361/ - ON ACCOUNT OF OVERD UE INTEREST AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS. 41,23,51,31 0 / - , CONSIDERING THE TOTAL INCOME OF THE ASSESSEE AS PER INCOME DECLARED AT RS. 15,29,04,950/ - IN ITS ORIGINAL RETURN . IN THE FIRST APPEAL, THE LD. CIT (A) DELETED BOTH THE ADDITIO NS AND DIRECTED TO THE AO TO COMPUTE THE TOTAL INCOME OF THE ASSESSEE RS. 13,83,57,275/ - I N VIEW OF THE FACT THAT THE ASSESSEE HAS FILED THE REVISED R ETURN OF INCOME DECLARING THE TO TAL INCOME OF RS. 13,83,57,280/ - . 3. THE REVENUE CHALLENGED THE IMPUGNED ORDER PASSED BY THE LD. CIT (A) ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (APPEALS) HAS ERRED IN HOLDING THAT THE ASSESSEE, A NON - SCHEDULED CO - OPERATIVE BANK, IS ALSO ELIGIBLE FOR DEDUCTION OF RS. 25,94,46,361/ - U/S 36(1)(VIIA) OF THE I.T. ACT, 1961. 3 ITA NO. 29 / NAG /201 5 ASSESSMENT YEAR: 20 12 - 13 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (APPEALS) HAS ERRED IN HOLDING THAT THE ASSESSEE, A NON - SCHEDULED CO - OPERATIVE BANK, IS ALSO ELIGIBLE FOR DEDUCTION NOT EXCEEDI NG 10% OF THE AGGREGATE AVERAGE ADVANCES MADE BY ITS RURAL BRANCHES U/S 36(1)(VIIA) OF THE I.T. ACT DISREGARDING THE FACT THAT SUCH DEDUCTION IS ALLOWABLE UNDER RULE 6ABA ON THE I.T. RULES, ONLY TO A SCHEDULED BANK. 3. O N THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, THE LD. CIT (APPEALS) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO ADOPT THE RETURNED INCOME OF RS. 13,83,57,280/ - AS AGAINST THE INCOME OF RS. 15,29,04,950/ - ADOPTED BY THE ASSESSING OFFICER ON THE BASIS OF ORIGINAL RETURN, DISRE GARDING THE FACT THAT THE ASSESSING OFFICER HAD SPECIFICALLY SOUGHT REASONS FOR REVISION TO THE LOWER INCOME AND THE ASSESSEE NEITHER FURNISHED THE REQUIRED REASONS BEFORE THE ASSESSING OFFICER NOR THE CIT (APPEALS). 4. THE COORDINATE BENCH AFTER HEARI NG THE PARTIES DISMISSED GROUND N O. 1 AND 2 BY UPHOLDING THE FINDINGS OF THE LD. CIT (A) VIDE ORDER DATED 17.06.2016 . 5. AS REGARDS GROUND NO 3 T HE LD. DEPARTMENTAL REPRESENTATIVE (DR) RELYING ON THE ASSESSMENT ORDER SUBMITTED BEFORE US THAT THE LD. CIT ( A) HAS WRONGLY DIRECTED THE AO TO COMPUTE THE TOTAL INCOME OF THE ASSESSEE AS PER THE INCOME OF RS. 13,83,57,275/ - DECLARED BY THE ASSESSEE IN REVISED RETURN AS AGAINST THE INCOME OF RS. 15,29,04,950/ - DECLARED BY THE ASSESSEE IN ITS ORIGINAL RETURN. 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO HAS WRONGLY COMPUTED THE INCOME OF THE ASSESSEE AT RS. 15,29,04,950/ - IGNORING THE FACT THAT THE REVISED GROUND WAS FILED SUBSEQUENTLY DECLARING THE TOTAL INCOME OF RS. 13,83,57,275/ - . THE LD. COUNSEL INVITED OUR ATTENTION TO THE RETURN DOWNLOADED FROM THE INCOME TAX DEPARTMENT SYSTEM TO SHOW THAT THE 4 ITA NO. 29 / NAG /201 5 ASSESSMENT YEAR: 20 12 - 13 OBSERVATION OF AO IS FACTUALLY INCORRECT AND THE ASSESSEE HAS SHOWN THE AGGREGATE INCOME AS RS. 13,83,57,280/ IN ITS RETURN OF INCOME - . 7. WE HAVE HEA RD THE RIVAL SUBMISSIONS AND ALSO PERUSED THE RELEVANT MATERIAL ON THE RECORD. WE NOTICE THAT THE ASSESSEE HAS FILED REVISED RETURN IN THIS CASE ON 13.11.2013 DECLARING THE TOTAL INCOME OF RS. 13,83,57,280/ - . THE AO WITHOUT POINTING OUT ANY INFIRMITY IN TH E SAID RETURN COMPUTED THE TOTAL INCOME TAKING THE FIGURES OF TOTAL INCOME DECLARED BY THE ASSESSEE IN ITS ORIGINAL RETURN. W E FIND MERIT IN THE CONTENTION OF THE LD. COUNSEL THAT THE LD. CIT (A) HAS RIGHTLY DIRECTED THE AO TO COMPUTE THE INCOME OF THE AS SESSEE ON THE BASIS OF THE INCOME DECLARED BY THE ASSESSEE IN THE REVISED RETURN AND DELETE THE ADDITION OF RS. 1,45,47,670/ - . HENCE, I N OUR CONSIDERED VIEW, THE FINDING OF THE LD. CIT (A) DOES NOT REQUIRE ANY INTERFERENCE BY THIS TRIBUNAL. WE THEREFORE UP HOLD THE FINDINGS OF THE LD. CIT (A) AND DISMISS THIS GROUND OF APPEAL OF THE REVENUE. SINCE, GROUND NO. 1 AND 2 HAS ALREADY BEEN DISMISSED BY THE COORDINATE BENCH AND WE HAVE DISMISSED GROUND NO. 3 OF THIS APPEAL, THE APPEAL FILED BY THE REVENUE FOR THE ASSESSMENT YEAR 2012 - 13 IS TREATED AS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH MAY , 2018 . SD/ - SD/ - ( SHAMIM YAHYA ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 08 / 0 5 /201 8 ALINDRA, PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) 5 ITA NO. 29 / NAG /201 5 ASSESSMENT YEAR: 20 12 - 13 4. CIT 5. DR, ITAT, NAGPUR 6. GUAR D FILE . BY ORDER, // TRUE COPY// ( SR. PS/PS ) ITAT, NAGPUR