Pavana Sahakari Bank Ltd., Pune V. Deputy Commissioner of Income-tax,

ITA 909/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7711 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 12-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUN E . , , ! , '# BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AW ASTHY, JM . / ITA NO.909/PUN/2015 '$ % &% / ASSESSMENT YEAR : 2008-09 M/S.PAVANA SAHAKARI BANK LTD, PLOT NO.83, D-II, MIDC, TELCO ROAD, CHINCHWAD, DIST-PUNE. PAN: AAHFP7193C .. APPELLANT VS. DY. COMMISSIONER OF INCOME-TAX, CIRCLE 10, PUNE. .. RESPONDENT ASSESSEE BY : SHRI KISHOR PHADKE DEPARTMENT BY : SHRI RAJEEV KUMAR DATE OF HEARING : 18-08-2017 DATE OF PRONOUNCEMENT : 23-08-2017 / ORDER PER VIKAS AWASTHY, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORD ER OF COMMISSIONER OF INCOME TAX(APPEALS), PUNE-6 DATED 05/03/2 015 FOR THE A.Y. 2008-09. 2. THE ASSESSEE IN APPEAL HAS ASSAILED THE ORDER OF CIT (A) ON TWO COUNTS: I) CONFIRMING OF DISALLOWANCE MADE U/S.36(1)(VIIA) AMOUNTING TO RS.25,07,143/- ; AND ITA NO.909/PUN/2015 PAVANA SAHAKARI BANK LTD 2 II) CONFIRMING OF DISALLOWANCE MADE U/S.36(1)(VIII) AMOUNTING TO RS.2,77,092/-. 3. SHRI KISHOR PHADKE APPEARING ON BEHALF OF THE ASSESSE E SUBMITTED THAT THE CIT(A) IN PARA 9 OF THE ORDER HAS RECORDED WRO NG FINDING OF FACT THAT THE ASSESSEE HAS MADE CLAIM U/S.36(1)(VIIA) AND 36(1)(VIII) OF THE ACT IN COMPUTATION OF INCOME WITHOUT ACTUALLY MAKING CORRESPON DING PROVISION IN THE BOOKS OF ACCOUNT. THE LD.AUTHORISED REPRE SENTATIVE POINTED THAT FROM A PERUSAL OF COMPUTATION OF INCOME AT PA GE 7 OF THE PAPER BOOK, AS WELL AS BALANCE SHEET OF THE ASSESSEE A S ON 31.03.2008 AT PAGE 42 OF THE PAPER BOOK IT IS CLEARLY EVIDENT THAT TH E ASSESSEE HAS MADE PROVISION FOR BAD AND DOUBTFUL DEBTS TO THE TUNE OF RS.65,0 0,000/- AND PROVISION IN RESPECT OF NPA U/S.36(1)(VIIA) RS.25,07,143/-. THE LD .AR SUBMITTED THAT THE MATTER CAN BE REMITTED BACK TO CIT (A) FOR FRESH ADJUDICATION AFTER CONSIDERING THE DOCUMENTS ON RECORD. 4. SHRI RAJEEV KUMAR REPRESENTING THE DEPARTMENT FAIRLY ADMITTED THAT THE ISSUE REQUIRE VERIFICATION OF FACTS FROM THE DOCUMENTS ON RECO RD. 5. BOTH SIDES HEARD. ORDERS OF THE AUTHORITIES BELOW PER USED. THE ONLY ISSUE IN APPEAL IS CONFIRMING OF DISALLOWANCE MADE U/S.36(1 )(VIIA) AND 36(1)(VIII) OF THE ACT. IT IS UNDISPUTED THAT THE ASSESSEE CA N CLAIM THE BENFIT U/S.36(1)(VIIA) AND U/S.36(1)(VIII) OF THE ACT, IF THE PROVISION IS MADE IN THE BOOKS OF ACCOUNT FOR THE SPECIFIC PURPOSE. IT HAS BEEN CONTENDED THAT THE CIT(A) HAS CONFIRMED DISALLOWANCE WITHOUT CONSIDERIN G THE FACT THAT THE ASSESSEE HAD CREATED PROVISION IN RESPECT OF B AD AND DOUBTFUL DEBTS, AS WELL AS PROVISION IN RESPECT OF NPA. BOTH THE SID ES AGREE THAT THE ITA NO.909/PUN/2015 PAVANA SAHAKARI BANK LTD 3 ISSUE RAISED IN THE APPEAL REQUIRE VERIFICATION OF FACTS. THER EFORE, WE DEEM IT APPROPRIATE TO REMIT THIS ISSUE BACK TO THE FILE OF CIT(A) FOR FRESH ADJUDICATION AFTER CONSIDERING DOCUMENTS ON RECORD. THE CIT(A) SHALL DECIDE THE ISSUE DE-NOVO AFTER AFFORDING OPPORTUNITY OF HEA RING TO THE ASSESSEE, IN ACCORDANCE WITH THE LAW. ACCORDINGLY THE AP PEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 23 RD DAY OF AUGUST, 2017. SD/- SD/- ( . /D.KARUNAKARA RAO) ( ! / VIKAS AWASTHY) / ACCOUNTANT MEMBER '/ JUDICIAL MEMBER / PUNE; / DATED : 23 RD AUGUST, 2017. S S . . G G . . R R )*'+, - &+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), PUNE-6. 4. THE PRINCIPAL CIT-5, PUNE. 5. , ! , #$% , / DR, ITAT, A BENCH, PUNE. 6. &' () / GUARD FILE. / BY ORDER, / / TRUE COPY / / .- % / SR. PRIVATE SECRETARY, ! , / ITAT, PUNE