A.C.I.T. AKOLA CIRCLE, Akola V. THE BULDHANA DISTRICT CENTRAL CO OP. BANK LTD., Buldhana

ITA 378/NAG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1315 (ITAT-NAGPUR)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 06-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: N O N E

Judgement Text

1 ITA NO. 378/NAG/2016. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER.. I.T.A. NO. 378/NAG/2016 ASSESSMENT YEAR : 2009 - 10. ASSTT. COMMISSIONER OF INCOME - TAX, THE BULDHANA DISTRICT CENTRAL AKOLA CIRCLE, AKOLA. VS. CO - OP. BANK LTD., BULDHANA. PAN AAAAT9375N. APPELLANT. RESPONDENT. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : NON E. DATE OF HEARING : 21 - 11 - 2016 DATE OF PRONOUNCEMENT : 23 RD NOV.., 2016 O R D E R. PER SHAMI M YAHYA : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I, NAGPUR DATED 21 - 03 - 2016 AND PERTAINS TO ASSESSMENT YEAR 2009 - 10. THE GROUNDS OF APPEAL READ AS UNDER : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) HAS ERRED IN HOLDING THAT THE ASSESSEE, A NON - SCHEDULED CO - OPERATIVE BANK, IS ALSO ELIGIBLE FOR DEDUCTION OF RS.1,62,64,100/ - U/S 36( 1)(VIIA) OF THE INCOME - TAX ACT, 1961? 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) HAS ERRED IN HOLDING THAT THE ASSESSEE, A NON - SCHEDULED CO - OPERATIVE BANK, IS ALSO ELIGIBLE FOR DEDUCTION NON EXCEEDING 10% OF THE AGGREGATE AVERAGE ADVANCES MADE BY ITS RURAL BRANCHES U/S 36(1)(VIIA) OF THE INCOME TAX ACT, 1961 DISREGARDING THE FACT THAT SUCH DEDUCTION IS ALLOWABLE UNDER RULE 6ABA OF THE INCOME TAX RULES ONLY TO A SCHEDULED BANK? 2 ITA NO. 378/NAG/2016. 2. BRIEF FACTS OF THE CASE ARE AS UNDER : TH E ASSESSEE HAS CLAIMED DEDUCTION OF RS.1,62,64,100/ - U/S 36(1)(VIIA). THE AO ASKED THE ASSESSEE TO EXPLAIN THE ADMISSIBILITY OF THE CLAIM. THE AO HAS DISALLOWED THE CLAIM BY HOLDING THAT THE ASSESSEE BANK IS A NON - SCHEDULED CO - OPERATIVE BANK OTHER THAN PRI MARY AGRICULTURAL CREDIT SOCIETY OR PRIMARY CO - OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK. ACCORDING TO AO, DEDUCTION IS ALLOWABLE ONLY TO CENTRAL CO - OPERATIVE BANK AND NOT TO A CO - OPERATIVE BANK OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY OR PRIM ARY CO - OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK AND SINCE THE ASSESSEE BANK DOES NOT FALL WITHIN THE AMBIT OF MEANING OF CO - OPERATIVE BANK AS PER EXPLANATION (VI) TO SECTION 36 (VIIA) OF THE ACT, THE CLAIM WAS DISALLOWED BY THE AO. 3. UPON ASSESSEES APPEAL, LEARNED CIT(APPEALS) CONSIDERED THE ISSUE AND DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. LEARNED CIT(APPEALS) INTER ALIA FOLLOWED THE ITAT, NAGPUR BNCH DECISION IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2008 - 09. 4. AGAINST THE ABOVE ORDER, REVEN UE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE LEARNED D.R. AND PERUSED THE RECORDS. NONE APPEARED ON BEHALF OF THE ASSESSEE. AN ADJOURNMENT PETITION HAS BEEN MOVED BY THE ASSESSEESS COUNSEL. WE FIND THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. H ENCE THE ADJOURNMENT REQUEST HAS BEEN REJECTED. 6. UPON CAREFUL CONSIDERATION WE FIND THAT ON IDENTICAL ISSUE THE ITAT, NAGPUR BENCH IN ASSESSEES OWN CASE HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. IT IS NOT THE CASE OF THE REVENUE THAT HONBLE JUR ISDICTIONAL HIGH COURT HAS REVERSED THE SAID ORDER. ACCORDINGLY RESPECTFULLY FOLLOWING THE PRECEDENT AS ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LEARNED CIT(APPEALS) ACCORDINGLY WE UPHOLD THE SAME. 3 ITA NO. 378/NAG/2016. 7. IN THE RESULT, THIS APPEAL BY THE REVENUE ST ANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF NOV., 2016. SD/ - SD/ - (RAM LAL NEGI) ( SHAMIM YAHYA) JUDICIAL MEMBER. ACOUNTANT MEMBER. NAGPUR, DATED: 23 RD NOV. , 2016. COPY FORWARDED TO : 1. THE BULDHANA DIST. CENTRAL CO - OP. BANK LTD., SAHAKARI BHAVAN, BHONDE CHOWK, BULDHANA. 2. A.C.I.T., AKOLA CIRCLE, AKOLA. 3. C.I.T. - I , NAGPUR. 4. CIT(APPEALS), - I , NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NA GPUR BENCH, NAGPUR. WAKODE.