DCIT, Circle-3, Nanded V. Siddheshwar Sahakari Bank Ltd., Latur

ITA 349/PUN/2013

• Counselvise Citation: 34924514 RSA 2013
• Duration Of Justice: 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 04-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE: SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO. 349 /PN/20 1 3 ASSESSMENT YEAR : 2009 - 10 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 3, NANDED VS. SIDDHESHWAR SAHAKARI BANK LTD., GUNJ GOLAI, LATUR, DISTT. - LATUR (APPELLANT) (RESPONDENT) PAN NO. AAAA S5067Q APPELLANT BY: SHRI S.P. WALIMBE RESPONDENT BY: SHRI SHARAD SHAH DATE OF HEARING : 24 - 12 - 2013 DATE OF PRONOUNCEM ENT : 27 - 01 - 2014 ORDER P ER R.S. PADVEKAR , JM : - IN THIS APPEAL , THE REVENUE HAS CHALLENGED T HE IMPUGNED ORDER OF THE LD. CIT(A), AURANGABAD DATED 06 - 11 - 2012 FOR THE A.Y. 2009 - 10. THE SOLITARY ISSUE FOR OUR CONSIDERATION IS WHETHER THE LD. CIT(A) JUST IFIED IN DELETING THE ADDITION ON ACCOUNT OF ADDITION MADE BY THE ASSESSING OFFICER OF RS.24,92,441/ - IN RESPECT OF THE INTEREST ACCRUED ON NPA (NONE PERFORMING ASSETS). 2. THE BRIEFLY STATED FACTS ARE AS UNDER. THE ASSESSEE IS A CO - OPERATIVE BANK ENGA GED IN BANKING BUSINESS. THE ASSESSEE FILED THE RETURN OF INCOME FOR THE A.Y. 2009 - 10 DECLARING TOTAL INCOME OF RS.1,15,55,715/ - . THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY AND ASSESSMENT HAS BEEN COMPLETED U/S. 143(3) OF THE INCOME - TAX ACT. THE ASSE SSING OFFICER HAS NOTED THAT THE ASSESSEE HAS SHOWN THE INTEREST RECEIVABLE ON NPA OF RS.24,92,441/ - AND AS THE ASSESSEE IS FOLLOWING 2 ITA NO. 349/PN/2013, SIDDHESHWAR SAHAKARI BANK LTD., LATUR MERCANTILE SYSTEM , THE SAID INCOME SHOULD BE OFFERED FOR TAX. THE ASSESSEE EXPLAINED THAT THE ASSESSEE BANK IS GOVERNED B Y THE RBI GUIDELINES AND AS PER THE RBI GUIDELINES THE INCOME ON NPA SHALL BE RECOGNIZED ON ACTUAL RECEIPT BASIS AND HENCE, THE BANK HAS FOLLOWED THE SAME AND INCOME EARNED FROM THE NPA I.E. INTEREST , IS BEING RECOGNIZED AS INCOME ON ACTUAL RECEIPT BASIS. THE ASSESSING OFFICER WAS NOT IMPRESSED WITH THE ARGUMENT OF THE ASSESSEE AND ACCORDINGLY MADE THE ADDITION TO THE TOTAL INCOME. THE LD. CIT(A) DELETED THE ADDITION. NOW THE REVENUE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE PARTIES. THE LD. COUNS EL SUBMITS THAT THE IDENTICAL ISSUE HAS COME FOR THE CONSIDERATION BEFORE THIS HON'BLE TRIBUNAL IN ASSESSEES OWN CASE IN THE A.Y. 2007 - 08 BEING ITA NO. 794/PN/2011 AND THE APPEAL FIELD BY THE REVENUE HAS BEEN DISMISSED. THE LD. COUNSEL ALSO FILED THE COP Y OF THE TRIBUNAL ORDER WHICH IS PLACED ON RECORD. THE LD. DR ALSO FAIRLY CONCEDED THAT AT LEAST AT THE TRIBUNAL LEVEL , T HIS ISSUE HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE. WE FIND THAT IN THE A.Y. 2007 - 08 BEING ITA NO. 794/PN/2011 ORDER DATED 31 - 08 - 20 12 THE TRIBUNAL HAS HELD AS UNDER: 2. THE RESPONDENT ASSESSEE IS A COOPERATIVE BANK CARRYING ON THE BUSINESS OF BANKING AND THE PROVISIONS OF BANKING REGULATION ACT, 1949 ARE APPLICABLE. THE RESPONDENT ASSESSEE FILED THE RETURN OF INCOME DECLARING THE TAX ABLE INCOME OF RS.61,16,610/ - . THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY AND ASSESSMENT HAS BEEN COMPLETED U/S.143(3) OF THE ACT. THE ASSESSING OFFICER MADE ADDITION OF RS.64,73,000/ - IN RESPECT OF THE INTEREST ON THE STICKY ADVANCES. THE ASSESSEE C HALLENGED THE SAID ADDITION BEFORE THE LD. CIT(A) AND LD. CIT(A) IN HIS REASONED ORDER DELETED THE ADDITION. 3. THE IDENTICAL ISSUE HAS BEEN CONSIDERED BY THE ITAT PUNE BENCH IN THE CASE OF ACIT, NANDED VS. OSMANABAD JANTA SAH. BANK LTD., LATUR, IN ITA. NO.795/PN/2011 ORDER DATED 31.08.2012. THE TRIBUNAL HAS CONSIDERED THE DECISION OF THE VISAKHAPATNAM 3 ITA NO. 349/PN/2013, SIDDHESHWAR SAHAKARI BANK LTD., LATUR BENCH MORE PARTICULARLY IN CASE OF DY.CIT, VIJAYAWADA VS. THE DURGA COOPERATIVE URBAN BANK LTD., VIJAYAWADA, IN ITA.NO.511/VIZAG/2010 DATED 10.03.2011 AND THE DECISION OF THE ITAT, AHMEDABAD BENCH IN THE CASE OF KARNAWATI COOPERATIVE BANK LTD. VS. DY.CIT 134 ITD 486 (AHMEDABAD). AS THE FACTS ARE IDENTICAL HERE, WE THEREFORE, FOLLOWING THE DECISION OF THE ITAT, PUNE BENCH, IN THE CASE OF OSMANABAD JANTA SAH. BANK LTD., (SUPRA) CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE GROUNDS TAKEN BY THE REVENUE. 4. WE FIND NO REASON TO TAKE DIFFERENT VIEW. WE, ACCORDINGLY, CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE GROUNDS TAKEN BY THE REVENUE. 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 27 - 01 - 201 4 SD/ - SD/ - ( R.K. PANDA ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL MEMBER RK /PS PUNE , DATED : 27 TH JANUARY, 20 14 COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A), AURANGABAD 4 THE CIT, AURANGABAD 5 THE DR, ITAT, B BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE