M/s Manipal Soubhagya Nidhi Ltd., Manipal V. DCIT, Udupi

ITA 350/BANG/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9419 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2009
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 30-07-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 20-04-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JASON P BAOZ
• Assessee Lawyers: DINESH
• Keywords: Capital expenditure
• Section: 143(3); 143(1); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI K.K. GUPTA, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE, K, JUDICIAL MEMBER ITA NOS.350, 361 & 362(BANG)/2009 (ASSESSMENT YEARS: 2004-05, 2005-06 & 2006-07) M/S.MANIPAL SOWBHAGYA NIDHI LTD. MANIPAL HOUSE, MANIPAL. .... APPELLANT VS. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-I, UDUPI. .... RESPONDENT APPELLANT BY : SHRI DINESH. RESPONDENT BY : SHRI JASON P. BAOZ. O R D E R PER GEORGE GEORGE K, JM : THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), MANGALORE, DATED 20-3-2009 . THE ASSESSMENT YEARS CONCERNED ARE 2004-05, 2005-06 & 2 006-07. 2. THE SOLITARY ISSUE RAISED IN THESE APPEAL IS REG ARDING PRINCIPAL PORTION OF DEPOSITS AND DEBENTURE FOREGON E BY THE DEPOSIT AND DEBENTURE HOLDERS, WHICH HAS BEEN TAXED BY THE AO AS REVENUE RECEIPT. BRIEF FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS A NON-BANKING FINANCIAL AND NIDHI COMPA NY CARRYING ON THE BUSINESS OF ACCEPTANCE OF DEPOSIT FROM MEMBE RS AND LENDING THE SAME TO MEMBERS. FOR THE CONCERNED ASS ESSMENT YEARS, RETURNS WERE PROCESSED U/S 143(1) OF THE INC OME-TAX ACT, ITA 350, 361 & 362/B/2009 PAGE 2 OF 3 1961 ['THE ACT' FOR SHORT]. ASSESSMENTS WERE REOP ENED U/S 147 AND NOTICE U/S 148 WAS ISSUED. IN RESPONSE TO THE SAID NOTICE, THE ASSESSEE FILED LETTER REQUESTING THE AO TO CONS IDER THE RETURNS FILED ORIGINALLY FILED AS RETURNS FILED IN RESPONSE TO NOTICE U/S 148. SUBSEQUENTLY, RETURNS WERE TAKEN FOR SCRUTINY AND T HE ASSESSMENTS WERE COMPLETED U/S 143(3) READ WITH SEC .147 OF THE ACT. IN THE ASSESSMENT, AO HAS REJECTED THE ASSESS EES CLAIM OF PRINCIPAL WRITTEN BACK ARISING OUT OF THE SETTLEMEN T OF DEPOSITS AND DEBENTURES AS CAPITAL EXPENDITURE AND TREATED T HE SAME AS INCOME FROM BUSINESS. BEING AGGRIEVED, ASSESSEE PR EFERRED APPEALS BEFORE THE LD. CIT(A). THE LD. CIT(A) CONF IRMED THE AOS VIEW OF TREATING THE PRINCIPAL WRITTEN BACK ARISING OUT OF THE SETTLEMENT OF DEPOSIT/DEBENTURES AS INCOME FROM BUS INESS AND DISMISSED THE APPEALS FILED BY THE ASSESSEE. IN AR RIVING AT THE ABOVE CONCLUSION, THE LD. CIT(A) FOLLOWED THE ORDER OF THE ITAT IN THE CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2003-0 4 (ITA NO.379/BANG/2008 DATED 7-11-2008). BEING AGGRIEVED , ASSESSEE HAS PREFERRED SECOND APPEAL BEFORE US. 3. AT THE TIME OF HEARING COUNSELS OF BOTH SIDES AG REED THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUA RELY COVERED AGAINST THE ASSESSEE BY THE ORDER OF THE TRIBUNAL C ITED SUPRA. FACTS AND CIRCUMSTANCES IN THE PRESENT ASSESSMENT Y EARS ARE SAME AS THOSE IN THE CASE OF THE ASSESSEE FOR ASSES SMENT YEAR 2003-04. THEREFORE, FOLLOWING THE TRIBUNAL ORDER C ITED SUPRA, WE HOLD THAT THERE IS NO INFIRMITY IN THE ORDERS OF TH E LD. CIT(A). ITA 350, 361 & 362/B/2009 PAGE 3 OF 3 4. IN THE RESULT, APPEALS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH AUGUST, 2009. SD/- SD/- (K.K. GUPTA) (GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE: D A T E D : 7TH AUGUST, 2009. EKS* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A), MANGALORE. 5 DR, ITAT, BANGALORE. 6 GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRA R, ITAT, BANGALORE.