The Asstt. Commissioner of Income-tax, Hoshiarpur V. The Hoshiarpur Central Coop Bank, Hoshiarpur

ITA 482/ASR/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7714 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 08-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R L CHHANALIA
• Assessee Lawyers: P K KHANNA
• Keywords: Business income; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.482(ASR)/2011 ASSESSMENT YEAR:2006-07 PAN:AAAAT0384K THE ASSTT. COMMR. OF INCOME-TAX, VS. THE HOSHIARPUR CENTRAL CO-OP. HOSHIARPUR CIRCLE, BANK LTD., HOSHIARPUR. HOSHIARPUR. (APPELLANT) (RESPONDENT) C.O. NO.26(ASR)/2011 (ARISING OUT OF ITA NO.482(ASR)/2011) ASSESSMENT YEAR: 2006-07 THE HOSHIARPUR CENTRAL CO-OP VS. THE ASSTT. COMMR. OF INCOME-TAX, BANK LTD. HOSHIARPUR. HOSHIARPUR. (APPELLANT) (RESPONDENT) DSEPARTMENT BY:SH. R.L. CHHANALIA, DR ASSESSEE BY:SH. P.K. KHANNA, CA DATE OF HEARING :03/05/2012 DATE OF PRONOUNCEMENT:03/05/2012 ORDER PER BENCH: THIS APPEAL BY THE REVENUE AND C.O. BY THE ASSESSE E ARE DIRECTED AGAINST THE ORDER OF THE CIT(A), JALANDHAR, DATED 16.06.2011 FOR THE ASSESSMENT YEAR 2006-07. ITA NO.482(ASR)/2011 CO NO.26(ASR)/2011 2 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER: 1. THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.9,2 7,296/- MADE BY THE AO ON ACCOUNT OF INTEREST ON INCOME TAX REFU ND BY TREATING THE INTEREST INCOME UNDER THE HEAD INCOME FROM OTHER SOURCE, ON WHICH DEDUCTION U/S 80P(2)(A)(I) WAS CLA IMED BY THE ASSESSEE AS ITS BUSINESS INCOME. 3. IN C.O. THE ASSESSEE HAS RAISED FOLLOWING GROUND S OF APPEAL: 1. THE RESPONDENT BANK HAS TO MAKE DEPOSITS TO VAR IOUS GOVT. BONDS/SECURITIES IN ORDER TO MAKE STATUTORY LIQUIDI TY RATIO ON WHICH INTEREST WAS EARNED. 2. THE RESPONDENT BANK GOT RELIEF FROM ITT AMRITSAR BENCH VIDE APPEAL NO.400(ASR)/2004 AND HONBLE P & H HIGH COUR T DISMISSED THE DEPARTMENT APPEAL AGAINST THE ORDER O F ITAT AND GIVE RELIEF OF SECTION 80P(2)(A)(I) ON THE INTEREST INCOME ON GOVT. BONDS/SECURITIES AS BUSINESS INCOME. THE DECI SION OF VARIOUS HIGH COURTS WERE ALSO CONFIRMED BY APEX COU RT IN THE CASE OF CIT VS. NAWANSHHAR CENTRL CO-OP. BANK LTD. (2007) 289 ITR 6 (SC). 3. INTEREST ON INCOME TAX REFUND ON TDS EXCESS DEDU CTED ON BUSINESS INCOME IS ALSO A BUSINESS INCOME AND ELIG IBLE FOR REBATE U/S 80P(2)(A)(I) OF THE ACT AS ORIGINAL INCO ME GETTING SIMILAR REBATE IN THAT SECTION. 4. IT IS COVERED MATTER & JURISDICTION HIGH COURT H AS DECIDED SAME IN FAVOUR OF ASSESSEE IN THE CASE OF CIT VS. HARYAN A STATE CO- OP. APEX BANK LTD. (2010) 322 ITR 404 (P&H). 4, AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE RAISED A PRELIMINARY OBJECTION THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL IS LESS THAN RS.3 LACS. THEREFORE, THE PRESENT APPEAL FILED BY THE DEPARTMENT ITA NO.482(ASR)/2011 CO NO.26(ASR)/2011 3 MAY BE DISMISSED, AS THE SAME IS NOT MAINTAINABLE BEING CONTRARY TO CBDTS INSTRUCTION NO.3 OF 2011 DATED 09.02.2011. 5. ON THE CONTRARY, THE LD. DR RELIED UPON THE ORDE RS OF THE AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ELEVANT MATERIALS AVAILABLE ON RECORD, ESPECIALLY CBDTS INSTRUCTION NO.3 OF 2011, DATED 9 TH FEBRUARY, 2011. AS PER RECORD, IT IS SEEN THAT THE REVENUE HAS FILED THE PRESENT APPEAL ON 08.09.2011 AFTER THE ISSUANCE OF CBDT INSTRUCTION NO.3 OF 2011, DATED 9 TH FEBRUARY, 2011. THUS, KEEPING IN VIEW THE FACTS AN D CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE REVENUE HAS FILED THE PRESENT APPEAL AFTER THE ISSUANCE OF THE SAID CBDT INSTRUC TION NO. 3 OF 2011, WHICH IS EFFECTIVE FROM 9 TH FEBRUARY, 2011. THEREFORE, IN OUR CONSIDERED OPINI ON, THE SAID INSTRUCTION OF CBDT IS BINDING UPON THE DE PARTMENT AND THE PRESENT APPEAL HAS BEEN FILED CONTRARY TO THE SAID INSTRUCTION ISSUED BY THE CBDT. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. 5. NOW WE TAKE UP C.O. NO.26(ASR)/2011 FILED BY THE ASSESSEE. AS WE HAVE DISMISSED THE APPEAL OF THE REVENUE, THE C.O. FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND THE SAME IS DISMISSED ACCORD INGLY. ITA NO.482(ASR)/2011 CO NO.26(ASR)/2011 4 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND C.O . OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3RD MAY, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3RD MAY, 2012 /SKR/ COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE: THE HOSHIARPUR CENTRAL CO-OP. BANK LT D. HOSHIARPUR. 2. THE ACIT HOSHIARPUR. 3. THE CIT(A), JLR. 4. THE CIT, JLR. 5. THE SR DR, ITAT, AMRITSAR TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH : AMRITSAR.