The Sonepat Urban Co-operative Bank Ltd., SONEPAT V. ACIT, SONEPAT CIRCLE, SONEPAT

ITA 4105/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7699 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 30-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V RAJ KUMAR
• Keywords: Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY NEW DELHI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.4105/DEL/2018 ASSESSMENT YEAR: 2009-10 THE SONEPAT URBAN COOP. BANK LTD. NEW SABJI MANDI, SONEPAT,HARYANA. PAN: AAAAT0374M VS ACIT, SONEPAT CIRCLE, SONEPAT. APPLICANT BY SHRI V. RAJKUMAR, ADVOCATE REVENUE BY MS RINKU SINGH, SR. DR ORDER PER K. NARASIMHA CHARY, JM AGGRIEVED BY THE ORDER DATED 2.4.2018 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ROHTAK {CIT(A)} FOR THE ASSTT. YEAR 2009-10 IN APPEAL NO.433/16-17, ASSESSEE PREFERRED THIS APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COOPERATIVE BANK AND HAS BEEN ENGAGED IN THE BUSINESS OF BANKING. FOR THE ASSTT. YEAR 2009-10, DATE OF HEARING 19.7.2019 DATE OF PRONOUNCEMENT 24 .7.2019 2 THEY HAVE FILED THEIR RETURN OF INCOME ON 25.9.2010 DECLARING TAXABLE INCOME OF RS.2,31,74,310/-. ASSESSMENT U/S 143(3)/148 WAS COMPLETED BY ORDER DATED 26.9.2016 MAKING AN ADDITION OF RS.20,60,619/- U/S 14A READ WITH RULE 8D OF THE INCOME-TAX ACT, 1961 (THE ACT). 3. ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A), WHO BY ORDER DATED 2.4.2018 DISMISSED THE SAME CONFIRMING THE ADDITION. HENCE, ASSESSEE PREFERRED THIS APPEAL. 3. TODAY THE ASSESSEE SOUGHT EARLY HEARING OF THE MATTER STATING THAT IN ASSESSEES OWN CASE FOR THE YEAR 2010-11 UNDER SIMILAR SET OF FACTS AND CIRCUMSTANCES, A COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO.3023/DEL/2015 VIDE ORDER DATED 28.2.2019 DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND THE PRESENT CASE IN HAND IS FULLY COVERED BY THE SAID DECISION. WE HEARD THE LEARNED DR ALSO, WHO DOES NOT DISPUTE THE ISSUE BEING COVERED BY THE ORDER OF THE TRIBUNAL IN ASSTT. YEAR 2010-11. 4. WE HAVE PERUSED THE RECORD IN THE LIGHT OF THE ORDER DATED 28.2.2019 IN ITA NO.3023/DEL.2015 AND FIND THAT A COORDINATE BENCH OF THIS TRIBUNAL WHILE DEALING WITH SIMILAR SET OF FACTS AND CIRCUMSTANCES AND RELYING UPON THE JUDGMENT OF THE HONBLE PUNJAB & HARAYANA HIGH COURT IN THE CASE OF CIT VS HERO CYCLES, (2010) 189 TAXMAN 50 AND CIT VS MAX INDIA (2016) 388 ITR 81 (P&H), RECORDED A FINDING OF FACT THAT A PRESUMPTION WOULD ARISE THAT INVESTMENT WOULD BE OUT OF THE INTEREST FREE FUNDS GENERATED OR AVAILABLE WITH THE COMPANY AND THERE ARE SUFFICIENT FUNDS TO MADE THE INVESTMENT. SIMILAR IS THE PLEA AND CASE IN THIS MATTER ALSO. 5. WE, THEREFORE, WHILE RESPECTFULLY FOLLOWING THE DECISION OF A COORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.3023/DEL/2015, WHICH IS IN ACCORDANCE WITH THE BINDING PRECEDENT OF THE PUNJAB & 3 HARYANA HIGH COURT IN THE CASE OF CIT VS MAX INDIA (SUPRA), FIND IT DIFFICULT TO SUSTAIN THE ADDITION. WE ACCORDINGLY DELETE THE SAME. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY, 2019. SD/- SD/- (PRAMOD KUMAR) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER DATED: 24 TH JULY, 2019 VJ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DRAFT DICTATED ON 19.7.2019 DRAFT PLACED BEFORE AUTHOR 19.7.2019 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON DATE OF UPLOADING ORDER ON THE WEBSITE FILE SENT TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. 4