The Gozaria Nagrik Sahakari Bank Ltd., Mehsana V. The Income Tax Officer, Ward-4, Patan

MA 120/AHD/2018

• Counselvise Citation: [2018] 111 COUNSELVISE.COM (IT) 1455 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 23-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 2

Judgement Text

, MH MHMH MH IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD LOZJH LOZJH LOZJH LOZJH EGKOHJ EGKOHJ EGKOHJ EGKOHJ IZLKN IZLKN IZLKN IZLKN] U; ] U;] U; ] U;KF KFKF KF;D LNL; , ;D LNL; , ;D LNL; , ;D LNL; ,OA OAOA OA OLHE OLHE OLHE OLHE VGEN VGEN VGEN VGEN] YS[KK LNL; ] YS[KK LNL; ] YS[KK LNL; ] YS[KK LNL; DS LE{KA DS LE{KA DS LE{KA DS LE{KA BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER MISC. APPLICATION NO.120/AHD/2018 (ARISING OUT OF ITA NO.112/AHD/2015) ( / ASSESSMENT YEAR : 2011-12) THE GOZARIA NAGRIK SAHAKARI BANK LTD., MAIN BAZAR, AT & POST GOZARIA 382825 DIST : MEHSANA / VS. ITO, WARD 4, PATAN ./ ./ PAN/GIR NO. : AAAAT 1074 G ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SANJAY R. SHAH, A.R. / RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. / DATE OF HEARING 20/07/2018 !'# / DATE OF PRONOUNCEMENT 20/08/2018 $% / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: BY VIRTUE OF THIS MISCELLANEOUS APPLICATION, THE AS SESSEE SEEKS TO RECTIFY THE APPARENT MISTAKE IN THE ORDER OF HONBLE ITAT I N ITA NO.112/AHD/2015 VIDE ORDER DATED 05-01-2018. 2. THE ASSESSEE BEFORE US SUBMITTED AS UNDER: 1.0 THE APPELLANT RESPECTFULLY SUBMITS THAT THE OR DER PASSED BY THE HON'BLE BENCH CONTAINS FOLLOWING MISTAKES APPARENT FROM RECORD WHICH REQUIRE TO BE RECTIFIED. MA NO.120/AHD/2018 (ARISI NG OUT OF ITA NO.112/AHD/2015) GOZARIA NAGRIK SAHAKARI BANK LTD. VS. IT O ASST.YEAR 2011-12 - 2 - 2.0 THE SECOND GROUND BEFORE THE HON'BLE TRIBUNAL W AS TO THE FOLLOWING EFFECT: 2. THE LEARNED CLT(A) ERRED IN LAW AND ON FACTS I N UPHOLDING THE ACTION OF THE A.O. ON WRONGLY ADDING DEPRECIATION ON GOVERNMENT SECURITIES TO THE AMOUNT OF RS.13,37, 050/- AND THEREBY CONFIRMING DISALLOWANCE OF THE SAME. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, IT IS SUBMITTED THAT NO DISALLOWANCE IS REQUIRED TO BE MADE. IT IS SUBMITTED THAT IT BE SO HELD NOW. 3.0 WHILE DISPOSING OFF THIS GROUND VIDE PARA-5 OF THE HON'BLE TRIBUNAL'S ORDER, THE HON'BLE BENCH GAVE A FINDING THAT THE LEARNED CIT(A) AGREED WITH THE CLAIM OF THE ASSESSE E BUT DIRECTED TO DELETE THE DISALLOWANCE OF RS.4.84,830/ - BEING GOVERNMENT SECURITIES PREMIUM WRITTEN OFF WHEREAS RS.13,37,050/- SHOULD HAVE BEEN MENTIONED BY LEARNE D CIT(A). 4.0 IN THIS REGARD, THE APPLICANT WOULD LIKE TO MEN TION THAT THE GROUND OF APPEAL BEFORE THE HON'BLE CIT(A) FOR RS,4 ,84,830/- WAS INDEED IN RESPECT OF WRITE-OFF OF GOVERNMENT SE CURITIES PREMIUM, WHICH WAS AN INDEPENDENT GROUND OTHER THAN GROUND FOR RS.13.37,050/- REGARDING PROVISION OF DEPRECIAT ION OF GOVERNMENT SECURITIES. THIS COULD BE SEEN FROM PARA - 6.1 OF THE ORDER OF LEARNED CIT(A). NOW, WHILE DISPOSING OFF T HIS GROUND, THE LEARNED CIT(A) IN PARA - 6.3 DIRECTED TO DELETE THE ADDITION MADE BY A.O. OF RS.4,84,830/- BEING GOVERNMENT SECU RITIES PREMIUM WRITE-OFF AND ALLOWED THE APPEAL OF THE APP LICANT ON THIS GROUND. HOWEVER, THE LEARNED CIT(A) DID NOT GI VE FINDING FOR RS. 13,37,050/- SPECIFICALLY TAKEN UP BEFORE HI M FOR THE PROVISION OF DEPRECIATION OF GOVERNMENT SECURITIES EVEN AFTER DISCUSSING THE MERITS OF THE SAME IN THE BODY OF HI S ORDER, WHICH SHOWS THAT HE AGREED WITH THE SUBMISSIONS OF THE AP PLICANT. SINCE, THE LEARNED CIT(A) HAD NOT GIVEN HIS FINDING ON THIS GROUND, THE APPLICANT HAD TAKEN THIS GROUND AS GROU ND NO.2 BEFORE THE HON'BLE TRIBUNAL AND DRAWN SUPPORT FROM THE EARLIER ASSESSMENT YEARS ORDERS IN APPLICANT'S OWN CASE WHE REIN THE SAID DEPRECIATION IN VALUE OF SECURITY WAS ALLOWED AS DE DUCTION BY HON'BLE ITAT, AHMEDABAD. 5.0 THE APPLICANT, THEREFORE, RESPECTFULLY SUBMITS THAT THE GROUNDS RELATING TO SECURITY PREMIUM WRITE OFF FOR RS.4,84, 830/- AND MA NO.120/AHD/2018 (ARISI NG OUT OF ITA NO.112/AHD/2015) GOZARIA NAGRIK SAHAKARI BANK LTD. VS. IT O ASST.YEAR 2011-12 - 3 - RS.13,37,050/- FOR DEPRECIATION IN VALUE OF SECURIT IES BEFORE THE CIT(A) WERE TWO DIFFERENT INDEPENDENT GROUNDS AND T HEREFORE THE OBSERVATIONS OF THE HON'BLE TRIBUNAL IN PARA-5 OF I TS ORDER THAT CIT(A) INADVERTENTLY CONSIDERED THE AMOUNT OF RS.4, 84,830/- AS AGAINST RS.13,37,050/- IS WITH RESPECT INCORRECT. T HE OBSERVATIONS OF HON'BLE BENCH IN PARA-5 GIVES AN IM PRESSION THAT RELIEF FOR RS.4,84,830/- GOT BY THE APPLICANT BEFORE CIT(A) IS TAKEN AWAY AND RELIEF OF RS.13,37,050/- IS ALLOWED BY THE HON'BLE BENCH IN SPITE OF THE FACT THAT APPLICANT HAD SUCCE EDED BEFORE C1T(A) IN RESPECT OF RS.4,84,830/- AND DEPARTMENT W AS NOT IN APPEAL BEFORE HON'BLE 1TAT. 6.0 THE APPLICANT, THEREFORE, RESPECTFULLY SUBMITS THAT THE HON'BLE TRIBUNAL SHOULD HAVE ALLOWED THE DEDUCTION OF RS.13 ,37,050/- TO THE APPLICANT BY FOLLOWING THE ORDER OF THE HON'BLE TRIBUNAL IN APPLICANT'S OWN CASE FOR A.Y.2010-11. WHICH WAS BEF ORE THE HONBLE BENCH RATHER THAN OBSERVING ABOUT THE INADV ERTENT ERROR ON THE PART OF CIT(A). 7.0 THE APPLICANT RESPECTFULLY SUBMITS THAT IN ORDE R TO PUT THE FACTS INTO CORRECT PERSPECTIVE, THE OBSERVATIONS IN PARA- 5 NEED TO BE RECONSIDERED AND MODIFIED SUITABLY BY THE HON'BLE B ENCH IN THE LIGHT OF FACTS MENTIONED ABOVE AND BE MODIFIED ACCO RDINGLY. AND FOR THIS ACT OF KINDNESS, THE APPLICANT SHALL F OREVER REMAIN GRATEFUL TO THE HON'BLE BENCH. ON THE OTHER HAND, THE LD. DR AGREED TO THE SUBMISS ION MADE BY THE LD. AR FOR THE ASSESSEE. 3. HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIA LS AVAILABLE ON RECORD. FROM THE PRECEDING DISCUSSION, WE NOTE THAT THE ITAT HAS COMMITTED AN INADVERTENT ERROR BY RECORDING THE AMO UNT OF RS.13,37,050/- IN PARA 5 OF ITS ORDER. ACTUALLY, IT SHOULD BE RS.4,84,830/- WHICH IS CORRECT AMOUNT. THUS, WE ARE INCLINED TO M ODIFY THE FINDING OF THE ITAT IN PARA 5, WHICH WILL BE READ AS UNDER: MA NO.120/AHD/2018 (ARISI NG OUT OF ITA NO.112/AHD/2015) GOZARIA NAGRIK SAHAKARI BANK LTD. VS. IT O ASST.YEAR 2011-12 - 4 - 5. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS , THE LD CIT(A) AGREED WITH THE CLAIM OF THE ASSESSEE AND DIRECTED THE AO TO DELETE THE DISALLOWANCE SO MADE. WE ORDER ACCORDINGLY. 4. IN VIEW OF ABOVE, MISC. APPLICATION FILED BY TH E ASSESSEE IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 20/08/2018 \ SD/- SD/- EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN OLHE VGEN OLHE VGEN OLHE VGEN OLHE VGEN U;KF;D LNL; YKS [KK LNL; U;KF;D LNL; YKS [KK LNL; U;KF;D LNL; YKS [KK LNL; U;KF;D LNL; YKS [KK LNL; (MAHAVIR PRASAD) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 20/08/2018 PRITI YADAV, SR.PS !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / CONCERNED CIT 4. ) () / THE CIT(A) 5. ,-. //'( , '(# , 12$&$ / DR, ITAT, AHMEDABAD 6. .34 5 / GUARD FILE. % & / BY ORDER, TRUE COPY '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD