THE AKOLA DISTRICT CENTRAL CO-OPERATIVE BANK LTD, Akola V. DCIT-AKOLA CIRCLE, Akola

ITA 424/NAG/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93421 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 03-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: SACHIN V LUTHRA

Judgement Text

1 ITA NO. 424/NAG/2013 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 424/NAG/2013 ASSESSMENT YEAR : 2010 - 11. THE AKOLA DISTRICT CENTRAL DY. COMMISSIONER OF COOPERATIVE BANK L TD. V/S. INCOME - TAX, CIVIL LINES, AKOLA. AKOLA CIRCLE, AKOLA. PAN AAAAT1093P. (APPELLANT) RESPONDENT. APPELLANT BY : SHRI SACHIN V. LUTHRA RESPONDENT BY : SHRI NARENDRA KANE. DATE OF HEARING : 2 7 - 05 - 2015 DATE OF PRONOUNCEMENT : 30 TH JUNE, 2015. O R D E R PER SHRI SHAMIN YAHYA, A.M . THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I, NAGPUR DATED 27 - 09 - 2013 AND PERTAINS TO ASSESSMENT YEAR 2010 - 11. THE GROUND OF APPEAL READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, LEARNED CIT(A) ERRED IN MAINTAINING ADDITION OF ` .1,23,73,202 ON ACCOUNT OF INTEREST ACCRUED ON NPAS WHICH IS NOT LIABLE TO TAX. 2 ITA NO. 424/NAG/2013 2. AT THE OUTSET, IN THIS CASE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT IDENTICAL ISSUE HAS BEEN CONSIDERED BY THIS TRIBUNAL IN ITA NO. 62/NAG/2013 FOR ASSESSMENT YEAR 2009 - 10 WHEREIN BY AN ORDER DATED 30 TH APRIL, 2015, THE TRIBUNAL HAD RESTORED THE ISSUE BACK TO THE FILE OF THE LEARNED CIT(APPEALS). FOR THIS PURPOSE THE TRIB UNAL IN THE SAID ORDER HAD REFERRED TO ANOTHER ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2007 - 08 WHEREIN VIDE ORDER DATED 05 - 09 - 2014 THE TRIBUNAL HAD RESTORED THE ISSUE BACK TO THE FILE OF CIT(APPEALS) IN THE FOLLOWING MANNER : 9. BEFORE US, THE DR SUBMITTED THAT THE ORDER OF THE CIT(A) DID NOT INSPIRE CONFIDENCE, BECAUSE, THE ORDER DID NOT CONSIDER THE FACT THAT ASSESSEE DID NOT FALL IN THE CATEGORY PRESCRIBED UNDER SECTION 43D AND THUS ALLOWANCE OF DEDUCTION WAS OUTSIDE SCOP E. THE DR ALSO SUBMITTED THAT THE RELIANCE OF CIT(A) ON THE CASE OF BHARAMUTRA CAPITAL & FINANCIAL SERVICES LTD. (SUPRA) WAS NOT CORRECT, AS THE SAID DECISION WAS REVERSED BY THE HONBLE DELHI HIGH COURT. 10. ON THE BASIS OF THE ABOVE, THE DECISION OF THE CIT(A) WAS IN ERROR. 11. ON THE OTHER HAND, THE AR SUBMITTED THAT THE PROVISION OF SECTION 43D WERE FULLY APPLICABLE, BECAUSE, A SIMILAR ISSUE WAS SEIZED WITH THE COORDINATE BENCH OF ITAT PUNE IN THE CASE OF OSMANABAD JANTA SAHAKARI BANK LTD. V/S. ITO IN ITA NO. 795/PN/2011, WHEREIN THE COORDINATE BENCH HELD THAT PROVISION OF SECTION 43D WERE APPLICABLE, HENCE, THE CONSEQUENTIAL EVENTS SHALL FOLLOW. 12. WE HAVE HEARD THE ARGUMENTS AND HAVE MINUTELY P0ERUSED THE FACTS. IT IS AN ADMITTED FACT THAT THE IMPLICATIONS OF SECTION 43D HAD BEEN IGNORED BY THE CIT(A). IT IS ALSO A FACT THAT THE DECISION OF PUNE BENCH OF THE ITAT WAS NOT THERE TO AID THE CIT(A) AND ALSO THE FATE OF THE DECISION OF PUNE BENCH VIS - - VIS THE DECISION OF HO9NBLE DELHI HIGH COURT, REVERSING THE DECISION OF BHARAHMUTRA CAPITAL & FINANCE SERVICES LTD. (SUPRA). 13. CONSIDERING THE LATEST FACTS, AND THE AMENDMENTS BROUGHT IN THE STATUTE, WE DEEM IT FIT THAT THE ISSUE BE EXAMINED AFRESH BY THE CIT(A) ALONG WITH ALL THE CITED CASE LAWS, AS MENTIONED IN THE IMPUGNED ORDER. 3 ITA NO. 424/NAG/2013 14. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE CASE TO THE CIT(A), WITH THE ABOVE DIRECTIONS. 3. SINCE THE FACTS IN THE PRESENT CASE ARE IDENTICAL WHICH HAS NOT BEEN DISPUTED BY BOTH T HE COUNSEL, WE ALSO DEEM IT APPROPRIATE TO RESTORE THE ISSUE BACK TO THE FILE OF THE LEARNED CIT(APPEALS) TO BE DECIDED AS PER THE COORDINATE BENCH ORDER DATED 05 - 09 - 2014 AS ABOVE. 4. IN THE RESULT, THIS APPEAL FILED BY THE ASSESSE STANDS ALLOWED FOR STATI STICAL PURPOSES. ORDER PRONOUNCED ON THIS 30 TH DAY OF JUNE, 2015. SD/ - SD/ - (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 30 TH JUNE, 2015. COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE