The ITO, Ward-2(2), JAMNAGAR V. The Commercial Co-Operative Bank Ltd., JAMNAGAR

ITA 52/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0196 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-10-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 03-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: KAMLESH RATHOD
• Section: 244A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT. . .. . . .. . , , , , . .. . . .. . , , , , $ $ $ $ BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVASTAV A, AM ITA NO.52 AND 53/RJT/2012. / ASSESSMENT YEARS 2004-05 AND 2005-06 INCOME TAX OFFICER WARD 2(2), JAMNAGAR ( * / APPELLANT) VS. COMMERCIAL CO-OPERATIVE BANK LTD., 6 TH FLOOR, ANJARIA CHAMBERS,K V ROAD, JAMNAGAR PAN: AAAAT2412J +,* / RESPONDENT - / REVENUE BY SHRI. AVINASH KUMAR /- / ASSESSEE BY SHRI KAMLESH RATHOD - / DATE OF HEARING 4.10.2012 - / DATE OF PRONOUNCEMENT 5.10.2012 / / / / ORDER . .. . . . . . , , , , / T. K. SHARMA, J. M. THESE APPEALS BY THE REVENUE ARE AGAINST THE COMMON ORDER DATED 22.11.20 11 OF CIT(A) FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06. BOTH THESE AP PEALS WERE HEARD TOGETHER ON THE SAME DATE AND ARGUED BY THE COM MON REPRESENTATIVE, THEREFORE, THESE APPEALS ARE BEING DECI DED BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THESE APPEALS IS THAT THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.8,88,798/- AND RS. 1,29,7,98/- MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF CLAIM FOR DEDUCTION U/S 80P(2) OF THE INCOME TAX ACT, 1961(THE AC T) IN RESPECT OF ITA NO.52 AND 53/RJT/2012. 2 THE INTEREST EARNED BY THE ASSESSEE U/S 244A OF THE ACT ON INCOME TAX REFUND FOR THE ASSESSMENT YEARS 2004-05 AND 2005-06 RES PECTIVELY. 3. AT THE OUTSET, SHRI AVINASHKUMAR, THE LD. DR APPE ARED ON BEHALF OF THE REVENUE AND POINTED OUT THAT THE INTEREST ON INCOME TAX REFUND IS NOT ATTRIBUTABLE TO BUSINESS OF THE ASSESSEE, THEREFORE, IT IS NOT ELIGIBLE FOR DEDUCTION U/S 80P92) OF THE ACT. 4. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THESE APPEALS STANDS COVERED IN FAVO UR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF THE RAJKOT BENCH OF THE TRIBUNAL IN THE CASE OF ITO V/S THE NAVANAGAR CO-OPERATIVE BANK LTD IN ITA NOS. 50 AND 51/RJT/2012 (AYS.2004-05 AND 2 005-06) DATED 13.7.2012. 5. AFTER HEARING BOTH THE SIDES, WE HAVE CAREFULLY GO NE THROUGH THE ORDERS OF AUTHORITIES BELOW AND ALSO THE ORDER OF CO-O RDINATE BENCH OF THE TRIBUNAL RELIED ON BY THE ASSESSEE. THE CO-ORDINATE B ENCH OF THE TRIBUNAL WHILE DECIDING THE ISSUE IN FAVOUR OF THE ASSESSE E RELIED ON THE DECISION OF THE HONBLE PUNJAB AND HARYANA HIGH COUR T IN THE CASE OF CIT V/S HARYANA STATE CO-OPERATIVE APEX BANK LTD (2010) 322 ITR 404 (PUNJ & HAR). THE TRIBUNAL IN THE CASE RELIED ON BY THE ASSESSEE VIDE PARAGRAPH 5 HAS OBSERVED AND HELD AS UNDER : 5. HAVING HEARD BOTH THE SIDES, WE HAVE CAREFULLY G ONE THROUGH THE ORDER OF THE AUTHORITIES BELOW IT IS PER TINENT TO NOTE THAT THE HONBLE PUNJAB AND HARYANA HIGH COURT IN THE CASE OF CIT V/S HARYANA STATE CO-OPERATIVE APEX BANK LTD (SUPRA)L H ELD THAT THE INTEREST RECEIVED BY THE CO-OPERATIVE APEX BANK ON REFUND ON EXCESS INCOME TAX PAID WOULD QUALIFY FOR DEDUCTION U/S 8 0P(2) OF THE ACT. NO CONTRARY JUDGMENT HAS BEEN CITED BY THE L D. DR AT THE TIME OF HEARING BEFORE US. WE, THEREFORE, INCLINE TO UPHOLD THE ORDER OF THE HONBLE .LD. CIT(A) FOR BOTH THE ASSESSMENT YEA RS. ITA NO.52 AND 53/RJT/2012. 3 WE, RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDINA TE BENCH OF THE TRIBUNAL IN THE CASE OF ITO V/S THE NAVANAGAR CO-OPER ATIVE BANK LTD (SUPRA) UPHOLD THE ORDER OF THE LD. CIT(A) AND DIS MISS THE APPEALS OF THE REVENUE. 6. IN THE RESULT, THE APPEALS OF THE REVENUE ARE D ISMISSED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DAT E MENTIONED HEREINABOVE. SD SD ( .. / D. K. SRIVASTAVA) ( .. / T. K. SHARMA) / ACCOUNTANT MEMBER /JUDICIAL MEMBER 3/ ORDER DATE 5.10.2012. /RAJKOT SRL - -- - +4 +4 +4 [phone] / COPY OF ORDER FORWARDED TO:- 1. * / APPELLANT-, 2. +,* / RESPONDENT- 3. : / CONCERNED CIT. 4. :- / CIT (A). 5. 4 +, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , TRUE COPY SENIOR PRIVATE SECRETARY , INCOME TAX APPELLATE TRIBUNAL, RAJKOT.