Jivan Commercial Co. Op. Bank Ltd., RAJKOT-GUJARAT V. The Addl. Commr. Income Tax, Range-2, RAJKOT-GUJARAT

ITA 578/RJT/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6668 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 07-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Keywords: Revision of order
• Section: 263; 2

Judgement Text

ITA NO.578/RJT/2014 A.Y.2011 - 12 : : IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI K. NAR ASIMHA CHA RY , JUDICIAL MEMBER ./ ITA NO .578/RJT/2014 / ASSESSMENT YEAR : 2011 - 12 JIVAN COMMERCIAL CO - OPERATIVE BANK LTD., VITTALAY, DHEBAR ROAD, RAJKOT PAN : AA AAJ0410C VS THE ADDL. CIT, RANGE - 2, RAJKOT / (APPELLANT) / (RESPONDENT) ASSESSEE BY : WRITTEN SUBMISSION REVENUE BY : SHRI AVINASH KUMAR , D.R / DATE OF HEARING : 21 / 03/2017 / DATE OF PRONOUNCEMENT: 22 /03/2017 / O R D E R PER SHRI S.V. MEHROTRA , ACCOUNTANT MEMBER : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT (A) - III , RAJKOT DATED 20 . 3 .2014 FOR ASSESSMENT YEAR 20 1 1 - 1 2 PASSED U/S 263 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT ). 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IN THE RELE VANT ASSESSMENT YEAR CARRIED ON BANKING BUSINESS. IT HAD FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS.3,51,69,010/ - THE ASSESSING OFFICER NOTICED THAT ASSESS EE HAD NOT DISCLOSED INTEREST INCOME OF NON PERFORMING ASSETS ON ACCRUAL BASIS TO THE TUNE OF RS.1,42,85,155. AFTER CONSIDERING THE ASSESSEE S SUBMISSIONS , HE MADE ADDITION OF RS,1,42,85,155/ - . LD.CIT(A) DISMISSED THE ASSESSEE S APPEAL. 3. HAVING HEARD BOTH THE PARTIES WE FIND THAT THIS ISSUE IS NO MORE RES - INTEGRA. IN THE WRITTEN SUBMISSIONS THE ASSESSEE HAS RELIED ON THE ITA NO.578/RJT/2014 A.Y.2011 - 12 DECISION OF HON'B LE GUJARAT HIGH COURT IN THE CASE OF PRINCIPAL CIT VS MAHILA SEVA SARKARI BANK LIMITED WHEREIN AFTER REFERRING TO A PLETHORA OF DECISIONS ON THIS ISSUE, THE HON'BLE GUJARAT HIGH COURT HELD THAT ASSESSEE WAS CORRECT IN NOT CHARGING INTEREST ON NPA. THE HO N'BLE G UJARAT HIGH COURT AGREED WITH THE VIEW TAKEN BY THE HON'BLE DELHI HIGH COURT IN THE CIT VS. VASISTH CHAY VYAPAR LTD., 330 ITR 440 WHEREIN IT WAS HELD THAT INTEREST INCOME COULD NOT BE SAID TO HAVE ACCRUED TO THE ASSESSEE HAVING REGARD TO PROVISIO NS OF SECTION 45Q OF THE RBI AND PRUDENTIAL NORMS ISSUED BY THE RBI IN EXERCISE OF ITS STATUTORY POWERS. 4. RESPECTFULLY, FOLLOWING THE DECISION OF HON BLE GUJARAT HIGH COURT , ASSESSEE S CLAIM OF NOT INCLUDING THE INTEREST ON NPA IN THE PROFIT AND LOSS AC COUNT IS ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE S IS ALLOWED. ORDER PR ONOUNCED IN THE COURT ON 22 ND MARCH, 2017. SD/ - SD. - ( K. NAR ASIMHA CHA RY ) JUDICIAL MEMBER ( S.V. MEHROTRA ) ACCOUNTANT MEMBER TRUE COPY AHMEDABAD, DATED 22 /03 /20 17 *MANISH / COPY OF ORDER FORWARDED TO: - 1 . / APPELLANT - 2 . / RESPONDENT - 3 . / CONCERNED CIT /DIT 4 . - / CIT (A) - IV, RAJKOT 5 . , , / DR, ITAT, RAJKOT 6 . / GUARD FILE. / BY ORDER, / ( DY./ASSTT.REGISTRAR) / ITAT, RAJKOT