Jt.CIT., Range-1, Bhavnagar V. State Bank of Saurashtra, Bhavnagar

ITA 297/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5852 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 14-06-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 27-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B S GEHLOT
• Assessee Lawyers: MEHUL K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI MUKUL SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER DATE OF HEARING : 16/06/2010 DRAFTED ON:16/0 6/2010 ITA NO.297/AHD/2008 ASSESSMENT YEAR : 2005-06 THE JOINT CIT RANGE-1 BHAVNAGAR VS. STATE BANK OF SAURASHTRA NILAMBAUG CHOWK BHAVNAGAR PAN/GIR NO. : AACCS 9880 R (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI B.S. GEHLOT, CIT-DR RESPONDENT BY: SHRI MEHUL K. PATEL O R D E R PER SHRI MUKUL SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-XX, AHMEDABA D DATED 26/10/2007 AND THE GROUNDS RAISED ARE AS FOLLOWS:- 1. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FAC TS IN DELETING THE ADDITION MADE BY THE A.O. OF RS.20,20,00,000/- BEIN G INTEREST ON AMOUNT DIVE3RTED FOR NON-BUSINESS PURPOSE. 2. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE INTEREST ACCRUED ON INVESTMENT PERTAINING TO PRECED ING YEAR AMOUNTING TO RS.140,55,14,991/- MADE BY THE A.O. 2. IT IS EVIDENT FROM THE LETTERS DATED 16/06/2010 & 15/06/2010 AS SUBMITTED DURING THE COURSE OF HEARING BY THE LEARN ED DEPARTMENTAL REPRESENTATIVE, THE ADMITTED FACTUAL POSITION IS TH AT THE REVENUE HAD ITA NO .297/AHD/2008 THE JT.CIT VS. STATE BANK OF SAURASHTRA ASST.YEAR - 2005-06 - 2 - APPLIED ON 21/02008 FOR COMMITTEE ON DISPUTES (COD) APPROVAL, HOWEVER, AFTER THE LAPSE OF SUCH FEW YEARS, THE REV ENUE IS NOT IN A POSITION TO PLACE ON RECORD THE SAID APPROVAL. ON ACCOUNT OF FAILURE FROM THE SIDE OF THE REVENUE TO OBTAIN THE APPROVAL OF T HE COD, WE HAVE NO OPTION BUT TO DISMISS THE APPEAL OF THE REVENUE. 3. FURTHER, WE FIND THAT THE ASSESSEE IS A PUBLIC S ECTOR UNDERTAKING. IN THE CASE OF ONGC VS. COLLECTOR OF CENTRAL EXCISE 10 4 CTR 31 (SC), THE HON'BLE APEX COURT HAS DIRECTED THAT NO LITIGATION BETWEEN THE GOVERNMENT AND ANY OTHER DEPARTMENT OF THE GOVERNME NT OR PUBLIC SECTOR UNDERTAKING SHALL BE PROCEEDED WITH BEFORE A NY COURT OR TRIBUNAL UNLESS THE APPROVAL OF A HIGH POWER COMMITTEE KNOWN AS COMMITTEE ON DISPUTES (COD) IS OBTAINED. ADMITTEDLY, THE REVENU E HAS NOT OBTAINED THE APPROVAL OF COD AND, THEREFORE, IN VIEW OF THE ABOVE DECISION OF HON'BLE APEX COURT THE APPEAL BY THE REVENUE CANNOT BE PROCEEDED WITH. ACCORDINGLY, THE SAME IS BEING DISMISSED IN LIMINE . HOWEVER, IF AT A LATER DATE, THE REVENUE OBTAINS THE APPROVAL OF C OD IT WILL BE AT LIBERTY TO REQUEST THE TRIBUNAL FOR THE RESTORATION OF THE APPEAL UNDER CONSIDERATION. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS POSED OF AS INDICATED ABOVE. ORDER SIGNED, DATED AND PRONOUNCED IN THE COURT ON 30/ 06 /2010. SD/- SD/- ( N.S. SAINI ) ( MUKUL SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30 / 06 /2010 T.C. NAIR, SR. PS ITA NO .297/AHD/2008 THE JT.CIT VS. STATE BANK OF SAURASHTRA ASST.YEAR - 2005-06 - 3 - COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-XX, AHMEDABAD 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT.REGISTRAR), ITAT, AHMEDABAD