Shri Satyavijay Sahakari Bank Ltd., Sangli V. Income-tax Officer,

ITA 75/PUN/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8549 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 10-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.75/PN/2014 (ASSESSMENT YEAR : 2010-11) SHRI SATYAVIJAY SAHAKARI BANK LTD., AT POST KUNDAL, TAL. PALUS, DIST.- SANGLI. PAN : AAAAS1086R . APPELLANT VS. INCOME TAX OFFICER, WARD 1(4), SANGLI. . RESPONDENT ASSESSEE BY : MR. M. K. KULKARNI DEPARTMENT BY : MR. RAJESH DAMOR DATE OF HEARING : 17-12-2014 DATE OF PRONOUNCEMENT : 29-12-2014 ORDER PER G. S. PANNU, AM THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AG AINST AN ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), KOLHAPUR DATED 25.10.2013 WHICH, IN TURN, HAS ARISEN FROM AN ORDER DATED 12.0 3.2013 PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 2010-11. 2. IN THIS APPEAL, THE GRIEVANCE OF THE ASSESSEE IS WITH REGARD TO DEDUCTION ON ACCOUNT OF DIMINUTION IN VALUE OF INVESTMENTS HE LD IN THE CATEGORY AVAILABLE FOR SALE (AFS) AMOUNTING TO RS.32,39,000/-. 3. THE ASSESSEE IS A CO-OPERATIVE SOCIETY REGISTERE D UNDER THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960 AND IS CARRYING ON THE BUSINESS OF BANKING IN TERMS OF A LICENSE ISSUED BY THE RESE RVE BANK OF INDIA (RBI). ASSESSEE CLAIMED DEDUCTION ON ACCOUNT OF DIMINUTION IN VALUE OF INVESTMENTS IN THE CATEGORY AVAILABLE FOR SALE (AFS), WHICH WAS DISALLOWED BY THE ITA NO.75/PN/2014 ASSESSING OFFICER ON THE GROUND THAT THE SAME WAS C APITAL IN NATURE. THE CIT(A) HAS ALSO AFFIRMED THE ORDER OF THE ASSESSING OFFICER, AGAINST WHICH ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, IT WAS A COMMON POINT BE TWEEN THE PARTIES THAT THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS . HDFC BANK LTD., 366 ITR 505 (BOM) HAS HELD THAT AN ASSESSEE IS ENTITLED FOR DEDUCTION WITH RESPECT TO THE DIMINUTION IN VALUE OF INVESTMENTS ON THE GR OUND OF THE MANDATE OF THE RBI GUIDELINES. FOLLOWING THE AFORESAID JUDGEMENT OF THE HONBLE BOMBAY HIGH COURT, WE HEREBY SET-ASIDE THE ORDER OF THE CI T(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW ASSESSEES CLAIM FOR DED UCTION WITH RESPECT TO THE DIMINUTION IN VALUE OF INVESTMENTS AMOUNTING TO RS. 32,39,000/-. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH DECEMBER, 2014. SD/- SD/- (R.S. PADVEKAR) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE, DATED: 29 TH DECEMBER, 2014. SUJEET COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A), KOLHAPUR; 4) THE CIT, KOLHAPUR; 5) THE DR A BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE