The Deputy Commissioner of Income Tax, Circle - 2(1), Mangalore V. M/s The South Canara District Central Co-op Bank Ltd, Mangaluru

ITA 83/PAN/2018

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0942 (ITAT-PANAJI)
• Duration Of Justice: 5 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: WT(D)
• Next Hearing Date: 04-10-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 25-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P.S. SHIVSHANKAR
• Keywords: Business expenditure; Charitable institution

Judgement Text

आयकर अपीलीय अधिकरण न्यायपीठ पणजी में । IN THE INCOME TAX APPELLATE TRIBUNAL, PANAJI (Through Virtual Court) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.83/PAN/2018 धििाारण वर्ा / Assessment Year : 2014-15 The Dy. Commissioner of Income Tax, Circle – 2(1), Mangaluru .......अपीलार्थी / Appellant बिाम / V/s. M/s. The South Canara District Central Co-op. Bank Ltd., K.S. Rao Road, Kodialbail, Mangaluru. PAN : AABAT6621N ......प्रत्यर्थी / Respondent Assessee by : Shri Ranganath Revenue by : Shri P.S. Shivshankar सुिवाई की तारीख / Date of Hearing : 05-10-2023 घोर्णा की तारीख / Date of Pronouncement : 06-10-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the Revenue against the order dated 30-12-2017 passed by the Commissioner of Income Tax (Appeals), Mangaluru [‘CIT(A)’] for assessment year 2014-15. 2. Ground Nos. 1, 6 and 7 raised by the Revenue are general in nature, hence, require no adjudication. 2 ITA No. 83/PAN/2018, A.Y. 2014-15 3. Ground Nos. 2 and 3 raised by the Revenue challenging the action of CIT(A) in deleting the addition made on account of interest accrued on investment on Government securities in the facts and circumstances of the case. 4. The AO discussed the issue at para 4.7 of the assessment order and brought to tax interest accrued on Non SLR investments Rs.14,81,52,740/-. The CIT(A) following the order of ITAT, Bangalore Benches in assessee’s own case for A.Ys. 2010-11 to 2013-14 deleted the addition made by the AO. The ld. DR did not dispute the same. Therefore, we do not find any infirmity in the order of CIT(A) and it is justified. Thus, ground Nos. 2 and 3 raised by the Revenue are dismissed. 5. Ground No. 4 raised by the Revenue challenging the action of CIT(A) in deleting the addition made on account of non-business expenditure paid to Navodaya Grama Vikasa Charitable Trust. 6. The AO discussed the same at para 6 of the assessment order. According to the AO the lump sum amounts monthly paid to Navodaya Grama Vikasa Charitable Trust held to be non-business expenditure and brought to tax Rs.1,49,56,800/- by holding that there was no relationship with the activities of the assessee. The CIT(A) followed the order of ITAT, Bangalore Benches in assessee’s own case for A.Ys. 2010-11 to 2013-14 and deleted the addition made by the AO. The ld. DR did not bring on record any order contrary to the view taken by the Tribunal in assessee’s own case. Therefore, we do not find any infirmity in the order of CIT(A) and it is justified. Thus, ground No. 4 raised by the Revenue is dismissed. 3 ITA No. 83/PAN/2018, A.Y. 2014-15 7. Ground No. 5 raised by the Revenue challenging the action of CIT(A) in deleting the addition made on account of amortization of premium paid on Government securities. 8. The assessee claimed expenses relating to amortization of premium paid on Government securities under the category held to maturity. The AO disallowed the same. The CIT(A) following the order of ITAT, Bangalore Benches in assessee’s own case for A.Ys. 2010-11 to 2013-14 deleted the addition made by the AO vide para 4.3.3. The ld. DR did not dispute the same. Therefore, we do not find any infirmity in the order of CIT(A) and it is justified. Thus, ground No. 5 raised by the Revenue is dismissed. 9. In the result, the appeal of Revenue is dismissed. Order pronounced in the open court on 06th October, 2023. Sd/- Sd/- (R.S. Syal) (S.S. Viswanethra Ravi) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ददिांक / Dated : 06th October, 2023. रधव आदेश की प्रधतधलधप अग्रेधर्त / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), Mangaluru. 4. The Pr. CIT, Mangalore. 5. धवभागीय प्रधतधिधि, आयकर अपीलीय अधिकरण, पणजी, / DR, ITAT, Panaji. 6. गार्ा फ़ाइल / Guard File. //सत्याधपत प्रधत// True Copy// आदेशािुसार / BY ORDER, वररष्ठ धिजी सधिव / Sr. Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune