ITO, Pune V. Rajashri Shahu Sahakari Bank Ltd., Pune

ITA 933/PUN/2010

• Counselvise Citation: 93324514 RSA 2010
• Duration Of Justice: 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 08-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 23-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H C LEUWA
• Assessee Lawyers: C UPASANI
• Keywords: Rule of consistency
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI I C SUDHIR, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 933/PN/2010 (ASSTT. YEARS: 2006-07) INCOME-TAX OFFICER, .. APPELLANT WARD 6(2), PUNE VS. RAJARSHI SHAHU SAHAKARI BANK LTD., .. R ESPONDENT 597NSHUKRAWAR PETH, SHAHU COMPLEX, SHIVAJI ROAD, PUNE PAN AAAAR 0258E APPELLANT BY: SHRI H C LEUWA RESPONDENT BY: SHRI C UPASANI ORDER PER G.S. PANNU, AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-III, PUNE DATED 3.3.2010 WHICH, IN TURN, HAS ARISEN FROM AN ORDER DATED 26.1 2.2008 PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE I NCOME-TAX ACT, 1961 (IN SHORT THE ACT), PERTAINING TO THE ASSESS MENT YEAR 2006-07. 2. THE ONLY ISSUE RAISED IN THIS APPEAL BY THE REV ENUE RELATES TO THE ASSESSEES CLAIM OF DEDUCTION OF RS 13,63,782/- UND ER SECTION 80P(2)(A)(I) OF THE ACT. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE BA NK IS A CO-OPERATIVE SOCIETY REGISTERED UNDER THE MAHARASHTRA CO-OPERATIVE SOCIE TIES ACT, 1960. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE YEAR UN DER CONSIDERATION SHOWING NIL INCOME. THE ASSESSMENT WAS COMPLETED BY THE ASSESSI NG OFFICER AT RS 19,03,610/-, WHICH INTER ALIA INCLUDED A DISALLOWAN CE OF DEDUCTION UNDER SECTION 80P(2)(A)(I) AMOUNTING TO RS 13,63,782/- IN RESPECT OF INTEREST ON INVESTMENTS MADE OUT OF VOLUNTARY RESERVES. AGGRIEVED, THE ASSE SSEE TOOK UP THE DISPUTE IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 2 3. THE COMMISSIONER OF INCOME-TAX (APPEALS) ALLOWED THE ASSESSEES CLAIM OF DEDUCTION UNDER SECTION 80P(2)( A)(I) OF THE ACT BY FOLLOWING THE DECISION OF THE PUNE BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO 585/PN/06 DATED 25.07 .2007 FOR THE ASSESSMENT YEAR 2003-04. BEING NOT SATISFIED WITH T HE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), THE REVENUE H AS COME UP IN APPEAL BEFORE US. 4. BEFORE US, IT WAS A COMMON POINT BETWEEN THE PAR TIES THAT THE DECISION OF THE TRIBUNAL DATED 25.07.2007 (SUPRA) IN THE ASSESS EES OWN CASE CONTINUES TO HOLD THE FIELD AND HAS NOT BEEN ALTERED BY ANY HIGH ER AUTHORITY AND, THEREFORE, FOLLOWING THE PRINCIPLE OF CONSISTENCY, WE AFFIRM T HE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) ON THE ASPECT OF ASSESSEES CLAIM FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT AMO UNTING TO RS 13,63,782/- REPRESENTING INTEREST ON INVESTMENTS OU T OF VOLUNTARY RESERVES. ACCORDINGLY, THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF MAY, 2011. SD/- SD/- (I C SUDHIR) JUDICIAL MEMBER (G.S. PANNU) ACCOUNTANT MEMBER PUNE: DATED: 11 TH MAY, 2011 B COPY OF THE ORDER IS FORWARDED TO : 1. RAJARSHI SHAHU SAH. BANK LTD., PUNE 2. ITO WD 6(2), PUNE 3. THE CIT(A)-III, PUNE 4. THE CITIII, PUNE 5. THE D.R, B BENCH, PUNE 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, PUNE BENCHES, PUNE