ACIT,Circle-3, Nainital V. The Nainital Bank Ltd, Nainital

ITA 5017/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8648 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 04-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHANLAL JOSHI
• Assessee Lawyers: K R RASTOGI
• Section: 14A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, DEHRADUN BEFORE SH. AMIT SHUKLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 5017/DEL/2017: ASSTT. YEAR: 2010-11 ACIT, CIRCLE-3, NAINITAL VS THE NAINITAL BANK LTD., SEVAN OAKAS, MALLITAL, NAINITAL, UTTARAKHAND-263001 (APPELLANT T (RESPONDENT) PAN NO. AA ACT5714D ASSESSEE BY : SH. K. R. RASTOGI, CA REVENUE BY : SH. MOHANLAL JOSHI, SR. DR DATE OF HEAR ING: 13 . 07 .20 21 DATE OF PRONOUNCEMENT: 13 .0 7 .20 2 1 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF LD. CIT (A), HALDWANI DATED 16.05.2017 . ADDITION U/S 14A: 2. DURING THE HEARING, THE ASSESSEE HAS MADE INVEST MENT OF RS.706,65,02,000/- IN VARIOUS SECURITIES/SHARES AND RS.82,10,60,336/- IN MUTUAL FUNDS & OTHER TAX FREE BONDS. THE ASSESSEE HAS MADE DISALLOWANCE OF RS.42,19,826/- U/ S 14A OF THE INCOME TAX ACT, 1961 BEING EXPENSES RELATABLE T O THE INCOME NOT INCLUDIBLE IN THE TOTAL INCOME AS PER TH E COMPUTATION OF TOTAL INCOME. THE AO MADE FURTHER DISALLOWANCE O F RS.4,14,60,879/-. ITA NO. 5017/DEL/2017 NAINITAL BANK LTD. 2 3. THE LD. CIT (A) DELETED THE ADDITION BASED ON TH E DECISION OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2003-04, 2004-05 AND 2005-06 IN ITA NO. 258 & 4987/DEL/2007 AND IN ITA NO. 260/DEL/2007. FURTHER, IN ITA NO. 3510/DEL/2008 FOR THE ASSESSMENT YEAR 2005-06, THE CO- ORDINATE BENCH OF THE TRIBUNAL AFTER GOING THROUGH THE FINANCIAL POSITION OF THE ASSESSEE GAVE A CATEGORICAL FINDING THAT THE ASSESSEE HAS GOT SUFFICIENT OWN FUNDS IN THE FORM O F SHARE CAPITAL, RESERVES & SURPLUS. THE FINANCIAL POSITION HAS NOT BEEN DISPUTED BY THE REVENUE AUTHORITIES DURING THE INST ANT YEAR. 4. HENCE, IN THE ABSENCE OF ANY CHANGE IN THE FACTU AL AND LEGAL POSITION OF THE ASSESSEE, WE AFFIRM THE DECIS ION OF THE LD. CIT (A) WHICH WAS BASED ON THE CONSIDERED PRONOUNCE MENT OF THE CO-ORDINATE BENCH OF ITAT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/07/2021. SD/- SD/- (AMIT SHUKLA) (D R. B. R. R. KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED: 13/07/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR