ACIT, Sikar V. SIKAR KENDRIYA SAHKARI BANK LTD., Sikar

ITA 382/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5346 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 19-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATEJA CIT DHK
• Keywords: Bad and doubtful debts

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH YFYR DQEKJ]] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: R.P. TOLANI, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA NO.382/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 SIKAR KENDRIYA SAHAKARI BANK LTD.,VASANT VIHAR, SIKAR CUKE VS. ACIT, CIRCLE, SIKAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAAS 1601 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE (WRITTEN SUBMISSION) JKTLO DH VKSJ LS@ REVENUE BY :S HRI O.P. BATEJA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18.03.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 18/03/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED THE REVENUE AGAINST THE OR DER OF CIT(A)-III, JAIPUR DATED 25.03.2014 WHEREIN THE REVENUE HAS TAKEN FOLL OWING GROUNDS OF APPEAL: (1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE WORTHY CIT(A) HAS ERRED ON FACTS AND IN LAW IN ALLOWING RELIEF OF RS. 41,30,534/- ON A/C OF PROVISION FOR BAD & DOUBTFUL DEBTS WITHOUT C ONSIDERING THE BALANCE IN THE PROVISION FOR BAD & DOUBTFUL ACCOUN T. (2) THE CIT(A) HAS PASSED A PERVERSE ORDER IN DELETING THE DISALLOWANCE TO THE EXTENT OF RS. 24,50,000/- IN RESPECT OF PROVIS ION FOR CONTINGENT LIABILITY ON ACCOUNT OF EARNED LEAVE. 2. AT THE OUTSET , THE LD. AR SUBMITTED THAT THE FACTS AND ISSUES RAIS ED BY THE DEPARTMENT IN ABOVE APPEAL ARE SIMILAR AND IDEN TICAL TO THEIR APPEAL RAISED VIDE ITA NO. 132/JP/2012 IN ASSESSEE BANKS OWN CAS E PERTAINING TO ITA NO. 382/JP/14 THE ACIT, SIKAR VS. SIKAR KENDRIYA SAHAKARI BANK LT D. SIKAR 2 ASSESSMENT YEAR 2008-09, THUS THESE ISSUES ARE ALREADY COVERED BY THE ORDER OF THE HONBLE ITAT, JAIPUR WHICH WAS DECIDED IN FAVOUR OF THE ASSESSEE VIDE ORDER 27.03.2015. 3. REGARDING GROUND NO.1 ITAT VIDE PARA 6 PAGE 10 OF ITS ORDER HELD AS UNDER:- WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. CIT(A) HAS C ONSIDERED THIS ASPECT IN GREAT DETAIL AND ALSO EXAMINED THE LEGAL POSITION F OR A.Y. 2007-08 AS WELL AS A.Y. 2008-09, WHICH HAS NOT BEEN CONTROVERTED B Y THE LD. DR. SECTION 36(1)(VIIA) OF THE ACT PROVIDES THAT ANY P ROVISION IN BAD AND DOUBTFUL DEBT MADE BY CENTRAL CO-OPERATIVE BANK IS ALLOWED DEDUCTION NOT EXCEEDING SEVEN AND ONE HALF PERCENT OF THE T OTAL INCOME (COMPUTED BEFORE MAKING ANY DEDUCTION UNDER THIS CL AUSE AND CHAPTER VIA) AND AN AMOUNT NOT EXCEEDING TEN PERCENT OF THE AGGREGATE AVERAGE ADVANCES MADE BY THE RURAL BRANCHES OF SUCH BANK CO MPUTED IN THE PRESCRIBED MANNER. THEREFORE, WE UPHELD THE ORDER OF THE LD. CIT(A). 4. REGARDING GROUND NO.2 ,WHILE DECIDING THE ISSUE IN FAVOUR OF THE ASSESSEE, THE ITAT VIDE PARA 11 PAGE 14 OF ITS ORD ER HELD AS UNDER: WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IT IS STATUTO RY LIABILITY OF THE ASSESSEE AS PER SERVICE RULES AT THE TIME OF RETIREMENT, THE AS SESSEE HAS TO PAY EQUIVALENT TO 30 DAYS LEAVE EARNED BY ALL THE EMPLOYEES DURING THE YEAR TO DISCHARGE ITS STATUTORY OBLIGATION. THE LD. CIT(A) HAS THOROUGHL Y EXAMINED THE STATUTORY LIABILITY PROVISIONS, WHICH HAS NOT BEEN CONTROVERT ED BY THE DR, THEREFORE, WE DO NOT FIND ANY REASON TO INTERVENE IN THE ORDER OF THE LD. CIT(A). ACCORDINGLY, WE DISMISS THIS GROUND OF THE REVENUES APPEAL. 5. GIVEN THAT THERE ARE NO CHANGES IN THE FACTS AN D CIRCUMSTANCES OF THE CASE, RESPECTFULLY FOLLOWING THE CO-ORDINATE BENCH DECISION (SUPRA), WE CONFIRM THE ORDER OF LD. CIT(A) AND DISMISS BOTH THE GROUN DS OF THE REVENUE. ITA NO. 382/JP/14 THE ACIT, SIKAR VS. SIKAR KENDRIYA SAHAKARI BANK LT D. SIKAR 3 IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18/0 3/2016. SD/- SD/- ( R.P. TOLANI ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 18/ 03 /2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE, SIKAR 2. THE RESPONDENT- THE SIKAR KENDRIYA SAHAKARI BAN K LTD. SIKAR 3. THE CIT(A) III, JAIPUR 4. THE CIT-III, JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 382 /JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR