The ACIT,Sabarkantha Circle, Sabarkantha V. The Sabarkantha Dist.Cent.Co.Op.Bank Ltd., Sabarkantha

ITA 626/AHD/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89569 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-05-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 13-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD .. , ( .) , ! BEFORE SHRI BEFORE SHRI G.D. AGARWAL,VICE PRESIDEN T (AZ) AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO. 626/AHD/2012 ( / ASSESSMENT YEAR : 2007-08) THE ASST.CIT SABARKANTHA CIRCLE HIMATNAGAR / VS. THE SABARKANTHA DIST.CENTRAL CO-OP.BANK LTD. HIMATNAGAR DIST.SABARKANTHA % & ./ ./ PAN/GIR NO. : AAAAT 1019 O ( %( / APPELLANT ) .. ( )*%( / RESPONDENT ) %(+ / APPELLANT BY : SHRI NIMESH YADAV, SR.DR )*%(,+ / RESPONDENT BY : -NONE- - ., /& / DATE OF HEARING 28/05/2015 0123 , /& / DATE OF PRONOUNCEMENT 05/ 06 /2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-VIII, AHMEDA BAD (CIT(A) IN SHORT) DATED 19/12/2011 PERTAINING TO ASSESSMEN T YEAR (AY) 2007-08. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS.75,58,970/- ON ACCOUNT OF INVESTMENT DEPRECIATIO N ACCOUNT WITHOUT APPRECIATING THE FACT THAT THE SAID AMOUNT WAS NOTI ONAL DEPRECIATION OF GOVERNMENT OF INDIA SECURITIES AS ON 31.3.2007 WHIC H WERE HELD BY THE BANK AS INVESTMENT AND NOT AS STOCK. ITA NO.626/AHD/ 2012 ACIT VS. THE SABARKANTHA DIST.CENTRAL COOP.BANK L TD. ASST.YEAR 2007-08 - 2 - 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD.C IT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED T O THE ABOVE EXTENT. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S.143( 3) OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 07/12/2009, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE ADDITION OF RS.75,58,970/- IN RESPECT OF INVESTMENT DEPRECIATION ACCOUNT. AGAINST THIS, ASSESSEE FILED AN APPEAL BEFORE THE L D.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS DELETED THE DISALLOWANC E. NOW, THE REVENUE IS IN APPEAL BEFORE US. 3. APROPOS TO GROUND NO.1, THE LD.SR.DR SUPPORTED T HE ORDER OF THE AO AND SUBMITTED THAT THE LD.CIT(A) WAS NOT JUSTIFI ED IN DELETING THE ADDITION. 3.1. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWE VER, A LETTER DATED 08/05/2015 IS PLACED ON RECORD BY SHRI ASHIVN C.SH AH ON BEHALF OF THE ASSESSEE. THE LD.COUNSEL FOR THE ASSESSEE SOUGHT AD JOURNMENT ON THE GROUND THAT PERSONAL DIFFICULTIES HE IS UNABLE TO A TTEND THE HEARING. 4. WE HAVE HEARD THE LD.SR.DR, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. WE FIND THAT THE LD.CIT(A) HAS FOLLOWED THE DECISION OF HIS PRED ECESSOR PASSED FOR AY ITA NO.626/AHD/ 2012 ACIT VS. THE SABARKANTHA DIST.CENTRAL COOP.BANK L TD. ASST.YEAR 2007-08 - 3 - 2004-05 AND ALSO THE DECISION OF THE COORDINATE BE NCH PASSED IN ITA NO.1819 & 1820/AHD/2005 DATED 29/09/2005 AS WELL AS THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN THE CASE OF U NITED COMMERCIAL BANK VS. CIT REPORTED AT (1999)240 ITR 355(SC) AND CIT VS. WOODWARD GOVERNOR INDIA(P.)LTD. REPORTED AT (2009) 312 ITR 254(SC) WHILE ALLOWING THE CLAIM OF ASSESSEE. THE LD.SR.DR COULD NOT DISTINGUISH THE DECISION RELIED UPON BY THE LD.CIT(A). THEREFO RE, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE LD.CIT(A) , SAME IS HEREBY UPHELD. THUS, GROUND NO.1 OF REVENUES APPEAL IS DISMISSED. 5. GROUND NOS.2 & 3 ARE GENERAL IN NATURE WHICH REQ UIRE NO INDEPENDENT ADJUDICATION. 6. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED . ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 5 TH DAY OF JUNE, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( .) ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER AHMEDABAD; DATED 5/ 06 /2015 6/..- , .-../ T.C. NAIR, SR. PS ITA NO.626/AHD/ 2012 ACIT VS. THE SABARKANTHA DIST.CENTRAL COOP.BANK L TD. ASST.YEAR 2007-08 - 4 - !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. %( / THE APPELLANT 2. )*%( / THE RESPONDENT. 3. 789 : / CONCERNED CIT 4. : ( ) / THE CIT(A)-VIII, AHMEDABAD 5. ; <)-89 , /893 , 7 / DR, ITAT, AHMEDABAD 6. < => . / GUARD FILE. / BY ORDER, * ;) //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 28.5.15 (DICTATION-PAD 3 + PAGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..29.5.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.5.6.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.6.15 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER