The Asstt. Commissioner of Income Tax circle - III, Jalandhar V. M/s The Citizen Urban Co-op. Bank Ltd., Jalandhar

ITA 379/ASR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5751 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 19-02-2018
• Assessment Year: 2014-2015
• Appeal Filed On: 08-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S NEGI
• Assessee Lawyers: J S BHASIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER ITA NO.379/ASR/2017 ASSESSMENT YEAR : 2014-15 THE ACIT, CIRCLE-III, JALANDHAR. VS. M/S THE CITIZEN URBAN CO-OP BANK LTD., CIVIL LINES, JALANDHAR. PAN: AAAAT6369E (APPELLANTS) (RESPONDENTS) ASSESSEE BY : SHRI J.S. BHASIN, ADVOCATE DEPARTMENT BY : SHRI S.S. NEGI DATE OF HEARING : 19.02.2018 DATE OF PRONOUNCEMENT : 20.02.2018 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE CIT(A) ON 23.03.2017 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. ITA NO.379/ASR/2017 2 2. THE FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS A PPEAL:- 1(A). WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.2,66,73,141/- MADE BY THE AO ON ACCOUNT OF TREATING INTEREST DUE TO NON PERFORMING ASSETS AS INCOME OF THE YEAR AS THE ASSESSEE WAS FO LLOWING MERCANTILE SYSTEM OF ACCOUNTING. 1(B). WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.C1T(A) HAS ERRED IN LAW IN GRANTING RELIEF OF IN TEREST ON NON PERFORMING ASSETS BY RELYING ON THE CONTENTION OF T HE ASSESSEE THAT IT WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING EXCEP T FOR INTEREST ON NON PERFORMING ASSETS, FOR WHICH THE ASSESSEE HAD F OLLOWED GUIDELINES ISSUED BY THE RBI, WHICH IS IN VIOLATION TO THE PRO VISION OF SECTION 145(1) OF THE INCOME TAX ACT, 1961. 1(C) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THAT THE LD. CIT(A) HAS ERRED IN LAW IN FOLLOWING THE DECISI ON OF HON'BLE DELHI PLIGH COURT IN CASE OF M/S VASISTH CHAY VYAPAR LTD. (DATED 29.11.2010). 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.89,93,195/- MADE BY AO ON ACCOUNT OF DISALLOWANCE OF BROKEN PERIOD I NTEREST DEBITED BY THE ASSESSEE. 3. IT IS PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) BE SET ASIDE AND THAT OF THE ASSESSIN G OFFICER BE RESTORED. 4. THE APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEND OR ALTER THE GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND DI SPOSED OFF. ITA NO.379/ASR/2017 3 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEV ANT MATERIAL ON RECORD. IT IS OBSERVED THAT SIMILAR ISSUES WERE RA ISED IN THE ASSESSEES OWN APPEAL FOR THE ASSESSMENT YEARS 2012-13 AND 201 3-14. VIDE ITS ORDER DATED 27.03.2017, THE TRIBUNAL IN ITA NOS.416 & 417/ASR/2016, HAS DECIDED BOTH THE ISSUES IN THE ASSESSEES FAVOU R. SINCE THE FACTS AND CIRCUMSTANCES OF THE INSTANT APPEAL ARE, MUTATIS MUTANDIS , SIMILAR TO THOSE ALREADY CONSIDERED AND DECIDED BY THE TRIBUNA L, RESPECTFULLY FOLLOWING THE PRECEDENT, WE UPHOLD THE IMPUGNED ORD ER. 4. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 20.02.201 8. SD/- SD/- [N.K. CHOUDHRY] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 20 TH FEBRUARY, 2018. DK ITA NO.379/ASR/2017 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, AMRITSAR.