Asstt. Commissioner of Income Tax, Patiala V. State Bank Of Patiala, Patiala

ITA 871/CHANDI/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3815 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 27-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHIL KUMARCIT
• Assessee Lawyers: TEJ MOHAN SINGH PROXY BANK
• Section: 143(3); 14A; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 871/CHD/2016 ASSESSMENT YEAR : 2009-10 THE ACIT, VS THE STATE BANK OF PATIALA, CIRCLE, THE MALL, PATIALA. PATIALA. PAN: AACCS0143D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUSHIL KUMAR,CIT- DR RESPONDENT BY : SHRI TEJ MOHAN SINGH (PROXY COUNSEL FOR BANK ) DATE OF HEARING : 29.11.201 6 DATE OF PRONOUNCEMENT : 29.11.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) PATIALA DATED 27.05.2 016 FOR ASSESSMENT YEAR 2009-10 CHALLENGING THE DELETIO N OF ADDITION OF RS. 45.76 CRORES MADE ON ACCOUNT OF APPORTIONMENT OF EXPENSES AGAINST EXEMPTED INCOME. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE COMPANY HAS FILED ITS RETURN OF INCOME OF RS. 1001. 61 CRORES ON 17.09.2009. THE ASSESSMENT UNDER SECTION 143(3) OF INCOME TAX ACT WAS MADE AT AN INCOME OF R S. 2 1065.37 CRORES WHICH INCLUDED DISALLOWANCE OF RS. 2 .32 CR UNDER SECTION 14A OF THE ACT VIDE ORDER DATED 23.12.2011. LATER ON, CIT, PATIALA PASSED ORDER UND ER SECTION 263 OF THE ACT ON 18.03.2014 HOLDING THE AFORESAID ASSESSMENT ORDER TO BE ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE AND SET ASID E THE ASSESSMENT ORDER WITH DIRECTION TO ENHANCE INCOME O F THE ASSESSEE BY RS. 43.44 CR ( RS. 45.76 CR RS. 2 .32 CR ) BEING THE DIFFERENCE OF THE DISALLOWANCE. THE ASSESSEE CHALLENGED THE ORDER UNDER SECTION 263 OF INCOME TAX ACT BEFORE ITAT CHANDIGARH BENCH WHO HAV E QUASHED THE ORDER UNDER SECTION 263 OF THE ACT IN I TA 447/2014 DATED 28.03.2016. THE LD. CIT(APPEALS), THEREFORE, HELD THAT THE ORDER PASSED BY THE ASSESS ING OFFICER UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT DATED 15.10.2014 STANDS INFRUCTUOUS AND APP EAL OF THE ASSESSEE WAS ACCORDINGLY, ALLOWED. 3. AFTER CONSIDERING RIVAL SUBMISSIONS, WE DO NOT F IND ANY MERIT IN THE DEPARTMENTAL APPEAL. SINCE THE IMPUGNED ASSESSMENT ORDER WAS PASSED UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT MAKING THE AFORESAID ADDITION AS PER DIRECTION OF THE CIT PATI ALA IN THE ORDER UNDER SECTION 263 OF THE ACT WHICH HAVE B EEN SET ASIDE AND QUASHED BY THE TRIBUNAL, THEREFORE, T HE ASSESSMENT ORDER DATED 15.10.2014 WOULD NOT SURVIVE AND THE PRESENT PROCEEDINGS STAND INFRUCTUOUS. NO IRREGULARITY OR ILLEGALITY HAVE BEEN POINTED OUT IN THE 3 IMPUGNED ORDER, THEREFORE, DEPARTMENTAL APPEAL HAS NO MERIT. SAME IS ACCORDINGLY, DISMISSED. 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29 TH NOVEMBER, 2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD