The Amaravati Zilla Parishad Techers Co-Oprative Bank Ltd, Nagpur V. Income Tax Officer ,Ward -4, Amaravati

ITA 339/NAG/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9191 (ITAT-NAGPUR)
• Duration Of Justice: 6 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-04-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 01-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U U KASAR
• Keywords: Depreciation; Set aside

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO. 33 9 /NAG /201 2 / ASSESSMENT YEAR : 20 0 7 - 08 THE AMRAVATI ZILLA PARISHAD TEACHERS CO - OPERATIVE BANK LTD., C/O M/S. KAPIL HIRANI & CO., CHARTERED ACCOUNTANTS, 8, WARDHA ROAD, NEAR LOKMAT SQUARE, NAGPUR 440012 PAN : AAAAT0593N ....... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD 4, AMRAVATI / RESPONDENT ASSESSEE BY : S HRI KAPIL HIRANI REVENUE BY : SHRI U.U. KASAR / DATE OF HEARING : 2 6 - 03 - 2019 / DATE OF PRONOUNCEMENT : 27 - 03 - 201 9 2 ITA NO . 339/NAG/2012, A.Y. 2007 - 08 / ORDER PER VIKAS AWASTHY, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - II, NAGPUR DATED 10 - 01 - 2012 FOR THE ASSESSMENT YEAR 200 7 - 08 . 2. MULTIPLE GROUNDS WERE RAISED BY THE ASSESSEE AGAINST THE SINGLE ISSUE OF DISALLOWANCE OF DEPRECIATION RS.80,00,000/ - ON THE VALUATION OF GOVERNMENT SECURITIES. THE APPEAL WAS HEARD BY THE DIVISION BENCH ON 25 - 04 - 2016. THE ACCOUNTANT MEMBER DID NOT CONCU R WITH THE VIEW OF JUDICIAL MEMBER. CONSEQUENTLY, DISSENTING ORDERS WERE PASSED BY BOTH THE MEMBERS. THE MATTER WAS REFERRED TO THIRD MEMBER. THE THEN PRESIDENT, INCOME TAX APPELLATE TRIBUNAL AS THIRD MEMBER VIDE ORDER DATED 21 - 09 - 2016 DID NOT APPROVE THE FINDINGS OF EITHER OF THE MEMBERS AND DIRECTED THAT THE CASE DESERVES TO BE HEARD AFRESH. THEREAFTER, WITH THE DIRECTIONS OF THE THEN PRESIDENT DATED 12 - 03 - 2018 THREE MEMBER BENCH WAS CONSTITUTED TO ANSWER THE FOLLOWING QUESTION IN THE CASE : WHETHE R ON FACTS AND CIRCUMSTANCES O THE CASE THE ISSUE NEEDS TO BE REMITTED TO THE FILE OF THE AO IN VIEW OF THE OBSERVATIONS MADE IN THE ORDER PROPOSED BY THE JUDICIAL MEMBER OR THE ORDER OF THE LEARNED CIT(APPEALS) NEEDS TO BE SET ASIDE AND THE ISSUE TO BE DE CIDED IN FAVOUR OF THE ASSESSEE AS PROPOSED BY ACCOUNTANT MEMBER, ALLOWING THE ASSESSEES CLAIM OF DEPRECIATION OF RS.80,00,000/ - (RUPEES EIGHTY LACS) IN THE VALUATION OF GOVERNMENT SECURITY. 3 ITA NO . 339/NAG/2012, A.Y. 2007 - 08 3 . THE THREE MEMBER BENCH AFTER HEARING THE SUBMISSIONS OF B OTH THE SIDES DECIDED THE ISSUE CONCURRING WITH THE VIEW OF ACCOUNTANT MEMBER IN ALLOWING ASSESSEES CLAIM OF DEPRECIATION ON GOVERNMENT SECURITIES. THE RELEVANT EXTRACT OF THE ORDER BY THREE MEMBER BENCH ON THE ISSUE IS AS UNDER: 17. THUS, IN VIEW OF TH E AFORESAID, WE AGREE WITH THE DECISION OF THE HONBLE ACCOUNTANT MEMBER IN ALLOWING ASSESSEES CLAIM OF DEPRECIATION. THE QUESTION REFERRED BY THE HONBLE PRESIDENT IS ANSWERED ACCORDINGLY BY HOLDING THAT ASSESSEES CLAIM OF DEPRECIATION OF RS.80 LAKH HA S TO BE ALLOWED AND THE ORDER OF THE LEARNED COMMISSIONER (APPEALS) HAS TO BE SET ASIDE. THE REGISTRY IS DIRECTED TO PLACE THE APPEAL RECORDS BEFORE THE CONCERNED DIVISION BENCH FOR DECIDING AS PER THE MAJORITY VIEW. 4. THUS, THE AFORESAID QUESTION WAS ANSWERED IN FAVOUR OF THE ASSESSEE , ALLOWING ASSESSEES CLAIM OF DEPRECIATION OF RS.80,00,000/ - . CONSEQUENTLY, THE IMPUGNED ORDER PASSED BY COMMISSIONER OF INCOME TAX (APPEALS) IS SET ASIDE AND THE APPEAL OF ASSESSEE IS ALLOWED. 5. IN THE RESULT, T HE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON WEDNESDAY, THE 27 TH DAY OF MARCH, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / NAGPUR ; / DATED : 27 TH MARCH, 2019. RK 4 ITA NO . 339/NAG/2012, A.Y. 2007 - 08 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - II, NAGPUR 4. / THE CIT - II, NAGPUR 5. , , , / DR, ITAT, NAGPUR BENCH, NAGPUR . 6. / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, NAGPUR