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

ITA 454/NAG/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1636 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 24-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: J M RANADE
• Keywords: Opportunity of being heard

Judgement Text

1 ITA NO. 454/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. 454 /NAG/201 3 ASSESSMENT YEAR : 20 10 - 11 DY. COMMISSIONER OF INCOME - TAX, AKOLA DISTRICT CENTRAL AKOLA CIRCLE, AKOLA. VS. COOPERATIVE BANK LTD. CIVIL LINES, AKOLA. PANAAAAT1093P. (APPELLANT) RESPONDENT. APPELLANT BY : SHR I NARENDRA KANE. RESPONDENT BY : SHRI J.M. RANADE. DATE OF HEARING : 07 - 09 - 2015. DATE OF PRONOUNCEMENT : 11 TH SEPT. , 2015. O R D E R PER SHRI SHAMIN YAHYA, A.M . THIS APPEAL BY THE REVENUE IS FILED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - I, NAGPUR DATED 27 - 0 9 - 201 3 AND PERTAINS TO ASSESSMENT YEAR 20 10 - 11 .T HE ISSUE RAISED IS THAT THE LEARNED CIT(APPEALS) ERRED IN HOLDING THAT THE INTEREST ON NPAS WHICH WAS OUTSTANDING FOR MORE THAN THREE YEARS WAS NOT TAXABLE. 2 . AT THE OUTSET IN THIS CASE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT IN ASSESSEES APPEAL FOR THE SAME ASSESSMENT YEAR WHICH WAS AGAINST THE ORDER OF LEARNED CIT(APPEALS) MAINTAINING ADDITION OF ` 1,23,73,202/ - ON ACCOUNT OF INTEREST 2 ITA NO. 454/NAG/2013 ACCRUED ON NPA TH E TRIBUNAL IN ITS ORDER IN ITA NO. 424/NAG/2013 VIDE ORDER DATED 30 TH JUNE, 2015 HAS REMITTED THE MATTER TO THE FILE OF THE AO FOLLOWING EARLIER YEARS TRIBUNAL ORDER. THE MATTER WAS SET ASIDE TO CONSIDER THE ISSUE IN THE LIGHT OF ITAT, PUNE BENCH DECISIO N IN THE CASE OF OSMANABAD JANTA SAHAKARI BANK LTD. VS. ITO IN ITA NO. 795/PN/2011. AS THE SAID DECISION WAS NOT AVAILABLE TO THE CIT(APPEALS) AT THE TIME OF ADJUDICATION, HENCE LEARNED COUNSEL PLEADED THAT SINCE THE ISSUE IN REVENUES APPEAL IS ALSO RELAT ED TO THE SAME ISSUE, THE MATTER MAY BE REMITTED TO THE FILE OF THE AO AS THE ASSESSEES APPEAL HAS ALREADY BEEN REMITTED TO THE FILE OF THE AO. LEARNED COUNSEL ALSO BROUGHT TO OUR NOTICE THAT THE ISSUE PERTAINING TO ADDITION ON ACCOUNT OF ACCRUED INTEREST ON NPAS IN CASES SIMILAR THAT OF THE ASSESSEE AND HAS NOW BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE HONBLE BOMBAY HIGH COURT IN INCOME TAX APPEAL NO. 53 OF 2014 IN THE CASE OF CIT VS. DEOGIRI NAGRI SAHAKARI BANK LTD., AURANGA BAD VIDE ORDER DATED 22 - 01 - 2015. 3 . PER CONTRA LEARNED D.R. RELIED UPON THE ORDER OF THE AO. 4 . UPON CAREFUL CONSIDERATION WE FIND THAT SINCE THE ISSUE IN APPEAL IS RELATED TO THE ISSUE RAISED BY THE ASSESSEE IN ASSESSEES APPEAL AND THE ASSESSEES APPEA L HAS BEEN REMITTED BY THE TRIBUNAL TO THE FILE OF THE AO, WE DEEM IT PROPER TO REMIT THE ISSUE RAISED IN REVENUES APPEAL ALSO TO THE FILE OF THE AO. THE AO SHALL CONSIDER THE ISSUE AFRESH AFTER GIVING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. THE A O SHALL TAKE INTO ACCOUNT THE DIRECTIONS OF THE TRIBUNAL AS MENTIONED ABOVE. HE SHALL ALSO CONSIDER THE HONBLE JURISDICTIONAL HIGH COURT DECISION AS CITED BY THE LEARNED COUNSEL OF THE ASSESSEE AS ABOVE. 3 ITA NO. 454/NAG/2013 5 . IN THE RESULT, THIS APPEAL FILED BY THE REVENU E STANDS ALL O WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF SEPT. , 2015. SD/ SD/ (MUKUL K. SHRAWAT) ( SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER. NAGPUR, DATED: 11 TH SEPT. , 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