The ACIT, 1(1), Bhopal V. M/s. M.P.State Co-operative Agricultural & Rural Development Bank Ltd., Bhopal

ITA 704/IND/2013

• Counselvise Citation: 70422714 RSA 2013
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 05-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VARSHANE
• Assessee Lawyers: ANIL KHAA; SUMIT KHAA CAS
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, J.M. AND SHRI B.C.MEENA, A.M. I.T.A.NO. 704/IND/2013 A.Y. : 2007-08 ACIT, 1(1), BHOPAL ` VS M/S. M.P. STATE COOP. AGRICULTURAL & RURAL DEVELOPMENT BANK LIMITED, BHOPAL APPELLANT RESPONDENT P.A.N. NO A ACCM2222K APPELLANT BY SHRI RAJEEV VARSHANE, CIT DR RESPONDENT BY SHRI ANIL KHABYA AND SHRI SUMIT KHABYA, CAS DATE OF HEARING : 17.08.2015 DATE OF PRONOUNCEMENT : 17.08.2015 -: 2: - 2 O R D E R PER GARASIA, J.M. THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A)-I, BHOPAL, DATED 13.09.2013 FOR THE ASSES SMENT YEAR 2007-08. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S AN AN APEX COOPERATIVE LAND MORTGAGE BANK ENGAGED IN T HE ACTIVITY OF AGRICULTURE CREDIT FINANCING THROUGH VA RIOUS DISTRICT LAND MORTGAGE BANKS. THE ASSESSEE FILED ITS ORIGINA L RETURN OF INCOME FOR ASSESSMENT YEAR 2007-08 ON 31.10.2007 DE CLARING NIL INCOME AFTER CLAIMING DEDUCTION U/S 80P OF RS. 53,342,232/-. THE CASE WAS SELECTED FOR SCRUTINY BY ISSUING NOTICE U/S 143(2) AND ASSESSMENT U/S 143(3) WAS COM PLETED ON 14.10.2009 DETERMINING TAXABLE INCOME AT RS. 53, 32,232/- BY DISALLOWING THE ASSESSEES CLAIM OF DEDUCTION U/ S 80P OF THE ACT. THE ASSESSEE FURNISHED AN APPEAL BEFORE THE CI T(A) AGAINST THE ASSESSMENT ORDER. THE LD. CIT(A) IN APP EAL NO. CIT(A) AGAINST THE ASSESSMENT ORDER. THE LD. CIT(A) IN APPEAL NO. CIT(A)-I/BPL/IT-152/09-10 ORDER DATED 08.07.201 1 HELD -: 3: - 3 THAT THE ASSESSEES CASE WAS NOT COVERED U/S 80P(4) OF THE ACT AND THAT THE ASSESSEE WAS ELIGIBLE FOR DEDUCTION U/ S 80P OF THE ACT. THE DEPARTMENT PREFERRED AN APPEAL AGAINST THE ORDER OF CIT(A). THE HON'BLE I.T.A.T. IN I.T.A.NOS. 254 & 25 5/IND/211 FOR ASSESSMENT YEARS 2007-08 AND 2008-09 ORDER DATE D 01.02.2012 UPHELD THE FINDINGS OF THE LD. CIT(A) AN D HELD THAT THE ASSESSEE WAS ENTITLED FOR DEDUCTION U/S 80P OF THE ACT. HOWEVER, MEANWHILE THE ORIGINAL ASSESSMENT COMPLETE D U/S 143(3) WAS REOPENED U/S 147 BY THE ASSESSING OFFICE R BY ISSUING NOTICE U/S 148 DATED 20.06.2011. AFTER ISSU ING NOTICES TO THE ASSESSEE, THE LD. AO COMPLETED THE REASSESSM ENT U/S 147 ON 19.02.2013 WHEREIN APART FROM DISALLOWING TH E ASSESSEES CLAIM OF DEDUCTION U/S 80P, THE AO ALSO DISALLOWED PROVISION FOR BAD AND DOUBTFUL DEBT AND OVERDUE INT EREST RESERVE OF RS. 2,66,10,000/- AND THE AMOUNT OF RS. 26,54,461/- ON ACCOUNT OF REIMBURSEMENT OF SALARY T O CADRE STAFF AND, ACCORDINGLY, ASSESSED THE TAXABLE INCOME AT RS. 3,45,96,690/- U/S 147 R.W.S. 143(3) OF THE ACT IN O RDER DATED 19.02.2013. AGAINST THIS REASSESSMENT ORDER U/S 147 , THE ASSESSEE FURNISHED THIS APPEAL. -: 4: - 4 3. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) DELETED THE ADDITION BY FOLLOWING THE ORDER OF I.T .A.T. DECIDED IN ASSESSEES OWN CASE PASSED IN I.T.A.NO. 254 AND 255/IND/2011 DATED 01.02.2012 FOR THE ASSESSMENT YE ARS 2007-08 AND 2008-09, COPY OF WHICH IS PLACED ON REC ORD, WHICH WAS SUBMITTED BY THE LD. COUNSEL FOR THE ASSE SSEE. THE HON'BLE I.T.A.T. UPHELD THE VIEW OF THE LD. CIT(A) HOLDING THAT THE ASSESSEE WAS ELIGIBLE FOR DEDUCTION U/S 80P OF THE ACT. 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE FIND THAT THE ASSESSEES CLAIM U/S 80P IS ALLOWABLE AND SQUARELY COVERED BY THE DECISION OF THE I.T.A.T . PASSED IN I.T.A.NO. 254 AND 255/IND/2011 DATED 01.02.2012. TH E ASSESSEE IS ENTITLED FOR THE DEDUCTION U/S 80P. WE , RESPECTFULLY, FOLLOWING THE DECISION OF I.T.A.T., I NDORE BENCH, AND DISMISS THE REVENUES APPEAL. -: 5: - 5 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 17 TH AUGUST, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED :1 ST SEPTEMBER, 2015. CPU* 278