Latur District Central Co-Op. Bank Ltd, Latur, Latur V. Dy. Commissioner Of Income Tax, CPC, Bangalor , Banglore

ITA 490/PUN/2022

AI Insights

The case involves three appeals by the Latur District Central Co-op. Bank Ltd. against the common order passed by the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment years 2017-18, 2018-19, and 2019-20. The primary issue in these appeals was the denial of deductions under section 36(1)(viia) of the Income Tax Act, which the assessee claimed were allowable but were reported as capital expenditures in the tax audit report. The Tribunal found that the NFAC did not decide on the issue of whether the claimed deductions were allowable and thus remanded the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132946 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-01-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 26-06-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital expenditure
• Section: 143(1)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.489, 490 & 491/PUN/2022 धििाारण वर्ा / Assessment Years : 2017-18, 2018-19 & 2019-20 Latur District Central Co-op. Bank Ltd., LDCC Bank Building, Y Chavan Marg, Latur – 413512 PAN : AAAAL0225H ......अपीलार्थी / Appellant बिाम / V/s. DCIT, CPC, Bangalore ......प्रत्यर्थी / Respondent Assessee by : Shri Kishor B. Phadke Revenue by : Shri Keyur Patel सुनवाई की तारीख / Date of Hearing : 16-01-2023 घोषणा की तारीख / Date of Pronouncement : 17-01-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : These three appeals by the assessee against the common order dated 30-04-2022 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment years 2017-18, 2018-19 and 2019-20. 2. Since, the issues raised in these three appeals are similar basing on the same identical facts, we proceed to hear these three appeals together and to pass a consolidated order for the sake of convenience. 2 ITA Nos.489 to 491/PUN/2022, A.Ys. 2017-18 to 2019-20 3. First, we shall take up appeal in ITA No. 489/PUN/2022 for A.Y. 2017-18. 4. Ground Nos. 1 and 3 raised by the assessee are general in nature, hence, require no adjudication. 5. Ground No. 2 raised by the assessee challenging the action of CIT(A), NFAC, Delhi in confirming the denial of deduction u/s. 36(1)(viia) of the Act. 6. We note that the assessee claimed deduction u/s. 36(1)(viia) of the Act which is evident from tax audit report at Point No. 21 a, S. No. 2 which is at page 71 of the paper book. The ld. AR submits that the assessee wrongly reported through tax audit as Capital Expenditure, but however, it was allowable deduction. We note from the impugned order at para 5.4 the NFAC, Delhi basing on mentioning of the same as Capital Expenditure in the statutory audit report confirmed the said disallowance made by the CPC, Bangalore under intimation u/s. 143(1) of the Act. We note that, the issue of claiming deduction u/s. 36(1)(viia) of the Act is allowable deduction or not was not decided by the NFAC, Delhi. The ld. AR prayed to remand the issue to the file of CIT(A) for fresh examination whether an amount of Rs.14,25,00,000/- is allowable deduction or not. The ld. DR did not repot any objection in remanding the matter to the file of CIT(A). Therefore, in the facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of CIT(A) for its fresh adjudication as indicated above. The assessee is liberty to file evidence, if any, in support of its claim. Thus, ground No. 2 raised by the assessee is allowed for statistical purpose. 3 ITA Nos.489 to 491/PUN/2022, A.Ys. 2017-18 to 2019-20 7. Ground No. 4 raised by the assessee challenging the action of CIT(A), NFAC, Delhi in confirming the denial of deduction of Rs.55,00,598/- on account of amortization of premium on Government Securities. 8. We note that the assessee reported the same as capital expenditure in the tax audit report at Point No. 21 a, S. No. 1 which is at page 71 of the paper book. Admittedly, the amortization of premium on Government Securities was held to maturity by the assessee. The CIT(A) basing on the audit report confirmed the disallowance under intimation u/s. 143(1) of the Act. The ld. AR reiterated the said submissions as canvassed in ground No. 2 raised with regard to denial of deduction u/s. 36(1)(viia) of the Act, wherein, we held the CIT(A) had not discussed the said issue the claim of deduction made by the assessee is allowable or not, in aforementioned paragraphs. In view of the same, we deem it proper to remand the matter to the file of CIT(A) for its fresh adjudication to the decide the issue is as to whether the claim of assessee is allowable deduction or not. The assessee is liberty to file evidence, if any, in support of its claim. Thus, ground No. 4 raised by the assessee is allowed for statistical purpose. 9. In the result, the appeal of assessee is allowed for statistical purpose. ITA Nos. 490 & 491/PUN/2022, A.Ys. 2018-19 & 2019-20 10. We find that the issues raised in the appeal and the facts in ITA Nos. 490 & 491/PUN/2022 are identical to ITA No. 489/PUN/2022 except the variance in amount. Since, the facts in ITA Nos. 490 & 491/PUN/2022 are similar to ITA No. 489/PUN/2022, the findings given by us while deciding the appeal of assessee in ITA No. 489/PUN/2022 would mutatis mutandis 4 ITA Nos.489 to 491/PUN/2022, A.Ys. 2017-18 to 2019-20 apply to ITA Nos. 490 & 491/PUN/2022, as well. Accordingly, the appeals of assessee are allowed for statistical purposes. 11. In the result, all the appeals of assessee are allowed for statistical purposes. Order pronounced in the open court on 17 th January, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 17 th January, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A) concerned. 4. The Pr. CIT concerned. 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune