The Asstt. Commr. Income Tax, Cir.-5, RAJKOT-GUJARAT V. M/s Saurashtra Gramin Bank, RAJKOT-GUJARAT

ITA 629/RJT/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2251 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: YOGESH PANDEY
• Assessee Lawyers: RONAK DAVDA
• Section: 234B; 14A; 263; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: S H RI N.K. BILLAIYA , ACCOUNTANT MEMBER AND SHR I S. S. GODARA , JUDICIAL MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] THE ACIT, CIRCLE - 5 , RAJKOT (APPELLANT) VS M/S. SAURASHTRA GRAMIN BANK, 1 ST FLOOR, S.J. PALACE, OPP. ANDH MHILA VIKAS GRUH, GOPAL NAGAR, DHEBAR ROAD, RAJKOT PAN: AAJCS5984K (RESPONDENT) REVENUE BY : S H RI YOGESH PANDEY , D . R. ASSESSEE BY: S H RI RONAK DAVDA , A.R. DATE OF HEARING : 03 - 03 - 2 016 DATE OF PRONOUNCEMENT : 09 - 03 - 2 016 / ORDER P ER : S. S. GODARA , JUDICIAL MEMBER : - THI S REVENUE S APPEAL FOR A.Y. 2010 - 11 , AR ISES FROM ORDER OF THE CIT(A) - IV, RAJKOT DATED 08 - 08 - 2014 IN APPEAL NO. CIT(A) - IV / 0225/13 - 14 , IN PROCEEDINGS UNDER SECTION 154 OF THE INCOME TAX ACT, 1961; IN SH ORT THE ACT . I T A NO . 629 / RJT /20 14 A SSESSMENT YEAR 2010 - 11 I.T.A NO. 629 /RJT /20 14 A.Y. 2010 - 11 PAGE NO ACIT VS. M/S. SAURASHTRA GRAMIN BANK 2 2. THE REVENUE S SOLE SUBSTANTIVE GROUND CHALLENGES THE LOWER APPELLATE ORDER REDUCING SECTION 234B INTEREST LEVY FROM RS. 30,80,740/ - TO RS. 22,03,023/ - THEREBY GRANTING RELIEF OF RS. 8,77,717/ - . FACTS OF THE CASE APPEARS TO BE IN A NARR OW COMPASS. THE ASSESSING OFFICER FRAMED A REGULAR ASSESSMENT IN ASSESSEE S CASE ON 05 - 03 - 2013 ACCEPTING RETURNED INCOME. THE CIT THEREAFTER REVIVED THE SAME IN HIS ORDER 29 - 01 - 2014 BY MAKING DISALLOWANCES/ADDITIONS OF AMORTIZED PREMIUM OF RS. 94,80,946/ - AND THE ONE U/S. 14A OF RS. 1,10,27,592/ - ; RESPECTIVELY THEREBY ENHANCING THE ASSESSEE S TAXABLE TO RS. 15,81,60,557/ - . THE ASSESSING OFFICER PASSED CONSEQUENTIAL ORDER ON 04 - 02 - 2014 RAISING FRESH DEMAND OF RS. 94,18,010/ - . THE ASSESSEE FILED FOR RECTI FICATION THEREOF U/S. SEEKING TO REDUCE SECTION 234B INTEREST LEVY ON THE GROUND THAT THE SAME IS TO BE CHARGED ONLY UP TO 05 - 03 - 2013 I.E. FRAMING OF THE REGULAR ASSESSMENT. THE ASSESSING OFFICER REJECTED THE SAME ON 18 - 02 - 2014. 3. THE ASSESSEE PREFERR ED APPEAL. THE CIT(A) ACCEPTS ITS CONTENTIONS BY RELYING ON HON BLE JURISDICTIONAL HIGH COURT DECISION IN BHARDOLIA TEXTILE MILLS LTD (1985) 151 ITR 389 (FULL BENCH) HOLDING THAT THE IMPUGNED INTEREST HAS TO BE LEVIED UP TO THE DATE OF FRAMING OF THE ASSE SSMENT AND NOT UP TO THE DATE OF CONSEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER IN CONSEQUENCE TO HIGHER AUTHORITIES ADJUDICATIONS. THIS LEAVES THE REVENUE AGGRIEVED. I.T.A NO. 629 /RJT /20 14 A.Y. 2010 - 11 PAGE NO ACIT VS. M/S. SAURASHTRA GRAMIN BANK 3 4. HEARD RIVAL CONTENTIONS. CASE FILE PERUSED. THE REVENUE S SOLE CONTENTION SEE KS TO CHARGE SECTION 234B INTEREST UP TO THE ASSESSING OFFICER S CONSEQUENTIAL ORDER DATED 04 - 02 - 2014 PASSED IN FURTHERANCE TO CIT S DIRECTION DATED 29 - 01 - 2014 U/S. 263 OF THE ACT INSTEAD OF THAT UP TO FRAMING OF REGULAR ASSESSMENT ON 05 - 05 - 2013. HON BLE JURISDICTIONAL HIGH COURT (SUPRA) HAS ALREADY DECIDED THE VERY ISSUE IN ASSESSEE S FAVOUR. THE REVENUE FAILS TO POINT OUT ANY EXCEPTION ON FACTS OR LAW. WE FIND NO REASON TO INTERFERE WITH THE LOWER APPELLATE ORDER ACCORDINGLY. 5. THIS REVENUE S APPEAL IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 09 - 03 - 201 6 SD/ - SD/ - (N.K. BILLAIYA ) ( S. S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 09 /03 /2016 AK / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT