The Assistant Commissioner of Income Tax Circle-1 , Vijayapura V. M/ s Sindagi Urban Co-operative Bank Ltd , Vijayapur

ITA 360/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6947 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 05-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DR SANDEEP GOEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.360 & 361/BANG/2018 ASSESSMENT YEAR : 2008-09 & 2012-13 THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-1, VIJAYAPUR. VS. SINDAGI URBAN CO-OPERATIVE BANK LTD., BANK ROAD, SINDAGI, DIST. VIJAYAPUR. PAN AAACT 3801 F. APPELLANT RESPONDENT ASSESSEE BY : DR. SANDEEP GOEL. ADDL. CIT (DR) REVENUE BY : SHRI SANDEEP, C.A DATE OF HEARING : 30.04.2019 DATE OF PRONOUNCEMENT : 30.04.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER BOTH THE APPEALS FILED BY THE REVENUE ON IDENTICAL GROUNDS RELATE TO ASSESSMENT YEARS 2008-09 AND 2012 -13. THEY ARE DIRECTED AGAINST THE ORDERS PASSED BY LD CIT(A) , BELGAVI. THE SOLITARY ISSUE URGED IN BOTH THE APPEALS IS WHETHER THE LD CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF INTEREST ACCRUED ON NON PERFORMING ASSETS? 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS A CO-OPERATIVE BANK CARRYING ON BANKING BUSINESS. IT CLASSIFIED CERTAIN ASSETS, BEING LOANS AND ADVANCES, AS NON P ERFORMING ITA NOS.360 & 361/BANG/2018 PAGE 2 OF 4 ASSETS (NPA). IT DID NOT ACCOUNT FOR INTEREST INC OME ACCRUED ON THOSE NPA. THE AO, TAKING SUPPORT OF CBDT CIRCULAR NO.F.NO.201/21/84-ITA-II DATED 09.10.1984 AND ALSO THE PROVISIONS OF SEC.43D OF THE ACT, TOOK THE VIEW THA T THE INTEREST ACCRUED ON NPA IS REQUIRED TO BE OFFERED AS INCOME. ACCORDINGLY HE COMPUTED INTEREST ACCRUED ON NPA AND ADDED THE SAME IN AY 2008- 09 AND 2012-13. 3. THE LD CIT(A) DELETED THE SAME BY FOLLOWING THE DECISION RENDERED BY HONBLE KARNATAKA HIGH COURT IN THE CAS ES OF CANFIN HOMES LTD (2011)(201 TAXMAN 273 AND THE BILAGI PATT AN SAHAKARI BANK NIYAMIT, BILAGI (ITA NO.100090 OF 2015) DELETE D THE ADDITION MADE BY THE AO IN BOTH THE YEARS. THE REVENUE IS A GGRIEVED BY THE DECISIONS SO RENDERED BY LD CIT(A) IN BOTH THE YEAR S. 4. THE LD D.R SUPPORTED THE ORDERS PASSED BY THE AO, WHILE THE LD A.R SUPPORTED THE ORDERS PASSED BY LD CIT(A). 5. WE NOTICE THAT THE LD CIT(A) HAS DELETED THE ADDITIONS IN BOTH THE YEARS BY FOLLOWING THE DECISION RENDERED BY HON BLE JURISDICTIONAL KARNATAKA HIGH COURT IN THE CASE OF CANFIN HOMES LTD (SUPRA) AND THE BILAGI PATTAN SAHAKARI BANK NIY AMIT (SUPRA). SINCE THE LD CIT(A) HAS FOLLOWED BINDING DECISION R ENDERED BY JURISDICTIONAL HIGH COURT, WE DO NOT FIND ANY REASO N TO INTERFERE WITH THE ORDERS PASSED BY LD CIT(A) ON THIS ISSUE. ITA NOS.360 & 361/BANG/2018 PAGE 3 OF 4 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENU E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL, 2019. SD/ - (PAVAN KUMAR GADALE) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 30TH APRIL, 2019. / VMS / COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3 . THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER A SST. REGISTRAR, ITAT, BANGALORE. ITA NOS.360 & 361/BANG/2018 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..