ACIT, Muzaffarnagar V. Muzaffarnagar District Cooperative Bank Ltd., Muzaffarnagar

ITA 3806/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8552 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 08-07-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 30-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 251

Judgement Text

I.T.A. NO.3806, 3324/DEL/2008 1 IN THE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI, BENCH E BEFORE SHRI R.C.SHARMA, ACCOUTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ITA NO.3806 /DEL/2008 (ASSESSMENT YEAR 2006-07) ACIT, RANGE 2, VS. MUZAFFARNAGAR DISTT. MUZAFFARNAGAR COOPERATIVE BANK LTD., COURT ROAD, MUZAFFARNAGAR, ITA NO.3324 /DEL/2008 (ASSESSMENT YEAR 2006-07) ACIT, RANGE 2, VS. MUZAFFARNAGAR KSHERIYA MUZAFFARNAGAR GRAMIN BANK LTD., 158, SOUTH CIVIL LINES, MUZAFFARNAGAR, (APPELLANTS) (RESPONDENTS) APPELLANT BY: SHRI MOHSIN ALAM, CIT DR SHRI G S SAHOTA, SR. DR RESPONDENT BY: NONE ORDER PER BENCH: 1. I.T.A. NO.3806/DEL/2008 IS AN APPEAL FILED BY TH E REVENUE AGAINST THE ORDER OF LD. CIT(A) MUZAFFARNAG AR IN APPEAL NO.0/2008-09 DATED 23.10.2008 FOR THE ASSESSMENT YEAR 2006-07 IN THE CASE OF MUZAFFARNAGA R DISTRICT COOPERATIVE BANK LTD. AND I.T.A. NO.3324/DEL/2008 IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) MUZAFFARNAGAR IN APPEAL NO.42/2008-09/MZR/48 DATED 28.8.2008 FOR THE ASSESSMENT YEAR 2006-07 IN THE CASE OF MUZAFFARNAGA R KSHETRIYA GRAMIN BANK. IN BOTH THE APPEALS, THE I.T.A. NO.3806, 3324/DEL/2008 2 REVENUE HAS CHALLENGED THE ACTION OF LD. CIT(A) IN DELETING THE ADDITION MADE BEING THE INTEREST RECEI VED FROM NON SLR INVESTMENTS. THE REVENUE HAS ALSO CHALLENGED THE ACTION OF LD. CIT(A) IN HOLDING THAT THE INTERESTS RECEIVED FROM THE NON SLR INVESTMENT WAS ELIGIBLE FOR EXEMPTION U/S 80P(2)(A)(I) OF THE ACT. NONE APPEARED ON BEHALF OF THE ASSESSEE AND SHRI MOHSIN ALAM, CIT DR & SHRI G S SAHOTA, SR. DR APPEARED ON BEHALF OF THE REVENUE. AT THE TIME OF HEARING, THE LD. D.R. SUBMITTED THAT THE INVESTMENT MADE BY THE ASSESSEE DURING THE YEAR EXCEEDED THE SLR AND AS INTEREST WAS RECEIVED FROM NON SLR INVESTMENT, THE INTEREST WAS NOT LIABLE TO BE TREATED AS BUSINESS I NCOME ELIGIBLE FOR DEDUCTION U/S 80(P)(2)(A)(I) OF THE AC T. THEY VEHEMENTLY SUPPORTED THE ORDERS OF THE ASSESSI NG AUTHORITY. 2. WE HAVE CONSIDERED THE SUBMISSIONS. A PERUSAL OF THE ORDER OF CIT(A) CLEARLY SHOWS THAT THE CIT(A) HAS FOLLOWED THE DECISION OF HON'BLE SUPREME COURT IN T HE CASE OF KARNATAKA STATE COOPERATIVE APEX BANK REPORTED IN 251 ITR 194, MEHSANA CENTRALIZED COOPERATIVE BANK LTD. REPORTED IN 251 ITR 522 AS AL SO THE DECISION OF HON'BLE SUPREME COURT IN THE CASE O F BANGALORE DISTRICT COOPERATIVE CENTRALIZED BANK LTD . REPORTED IN 233 ITR 282 WHEREIN THE HON'BLE SUPREME I.T.A. NO.3806, 3324/DEL/2008 3 COURT HAS HELD THAT THERE IS NO DIFFERENCE BETWEEN THE INCOME FROM SLR AND NON SLR INVESTMENTS AND ALSO THAT ALL THESE INCOMES ARE FROM THE BANKING BUSINES S AND THEY WERE ENTITLED TO THE DEDUCTION U/S 80P(2)(A)(I ) OF THE ACT. AS IT IS NOTICED THAT THE LD. CIT(A) HAS FOLLOWED THE JUDICIAL DISCIPLINE BY FOLLOWING THE DECISION OF HON'BLE SUPREME COURT ON THE ISSUE AND AS REVENUE HAS NOT BEEN ABLE TO PLACE ANY DISTINGUISHI NG FACTS BEFORE US, WE ARE OF THE VIEW THAT THE FINDIN G OF THE LD. CIT(A) IS ON RIGHT FOOTING AND CALL FOR NO INTERFERENCE. 3. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE S TAND DISMISSED. 4. THIS DECISION WAS PRONOUNCED IN THE OPEN COURT O N 10 TH JULY 2009. (R.C.SHARMA) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:10 TH JULY, 2009 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI