ACIT, Ludhiana V. The Ludhiana Central Co-op Bank Ltd., Ludhiana

MA 32/CHANDI/2014

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3158 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 20-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA; PRAVEEN JIN DAL
• Assessee Lawyers: MANJIT SINGH

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI. BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER MA NO. 32/CHD/2014 (IN ITA NO. 526/CHD/2013) ASSESSMENT YEAR: 2009-10 THE ACIT, CIRCLE IV, VS. THE LUDHIANA CENTRAL CO- OP BANK LTD., LUDHIANA LUDHIANA PAN NO.AAAJT1911B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : S/SHRI MANISH GUPTA & PRAVEEN JIN DAL DATE OF HEARING : 05.06.2015 DATE OF PRONOUNCEMENT : 05.06.2015 ORDER PER T.R.SOOD, A.M. THROUGH THIS MISC. APPLICATION THE REVENUE HAS SOUG HT RECTIFICATION OF AN ERROR WHICH HAS CREPT INTO THE ORDER OF TRIBUNAL IN ITA NO. 526/CHD/2013 DATED 25.02.2014. 2. THE LD. DR REFERRED TO THE MISC. APPLICATION AND POINTED OUT THAT REVENUES APPEAL WAS DECIDED BY THE TRIBUNAL WITH REGARD TO T HE ISSUE OF RELIEF ALLOWED BY CIT(A) ON ACCOUNT OF INTEREST ACCRUED ON NON PERFOR MING ASSETS. THIS ISSUE WAS RAISED BY THE REVENUE THOUGH GROUND NO.1 OF THE APP EAL. 3. THE LD. DR REFERRED TO THE MISC. APPLICATIONS AN D POINTED OUT THAT THE TRIBUNAL HAS DECIDED THIS ISSUE AGAINST THE REVENUE BY FOLLOWING THE ORDER IN THE CASE OF ACIT VS. PUNJAB STATE COOPERATIVE BANK LTD IN ITA NO. 1112/CHD/2010. THE LD. DR SUBMITTED THAT IN CASE OF ACIT VS. PUNJA B STATE COOPERATIVE BANK LTD THE RELIEF WAS GIVEN MAINLY ON THE BASIS THAT PROVI SIONS OF SECTION 43D OF THE ACT 2 WHICH CLEARLY PROVIDES THAT IN CASE OF PUBLIC FINA NCIAL INSTITUTION OR SCHEDULED BANK ETC, THE INCOME BY WAY OF INTEREST IN RELATION TO THE LOAN OF DOUBTFUL NATURE IS TAXABLE ONLY WHEN THEY ARE CREDITED IN THE BOOKS OF ACCOUNT . HE POINTED OUT THAT THESE FACTS BECOMES CLEAR FROM THE ORDER OF TRIBUNA L AT PAGE 5 WHEREIN IN PARA 13 OF THE ORDER IN THE CASE OF ACIT V PUNJAB STATE COO PERATIVE BANK LTD. (SUPRA) HAS BEEN REPRODUCED. HE FURTHER POINTED OUT THAT EVEN THE ASSESSING OFFICER HAS DISCUSSED THIS ISSUE REGARDING PROVISIONS OF SECTIO N 43D IN THE ASSESSMENT ORDER ITSELF. HE CONTENDED THAT SINCE ASSESSEE IS NOT A SCHEDULED BANK, THEREFORE, DECISION IN THE CASE OF ACIT V S PUNJAB STATE COOPE RATIVE BANK LD. SHOULD NOT HAVE BEEN APPLIED. THEREFORE, CLEARLY AN ERROR HAS CREPT IN THE ORDER OF TRIBUNAL AND THE SAME MAY BE RECALLED. 4. ON THE OTHER HAND LD. COUNSEL OF THE ASSESSEE SU BMITTED THAT THERE IS NO DOUBT THAT TRIBUNAL HAS REFERRED TO THE DECISION OF ACIT V PUNJAB STATE COOPERATIVE BANK LTD (SUPRA). FURTHER, THE TRIBUNAL HAS ALSO REFERRED TO THE DECISION OF AHMADABAD BENCH OF THE TRIBUNAL IN THE CASE OF KARNAVATI CO-OP BANK LTD VS. DCIT AND EVEN THAT BANK IS NOT A SCHED ULED BANK AND, THEREFORE, THAT DECISION HAS BEEN RIGHTLY FOLLOWED. ACCORDINGLY TH ERE IS NO ERROR APPARENT FROM THE RECORD. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFUL LY. WE FIND THAT IN ASSESSMENT ORDER ITSELF THE ASSESSING OFFICER HAS D ISCUSSED THE ISSUE IN DETAIL AND HE HAS ALSO REFERRED TO THE DECISION OF HON'BLE SUP REME COURT IN CASE OF SOUTHERN TECHNOLOGIES LTD V JCIT 320 ITR 577. THE ASSESSING OFFICER FURTHER DISCUSSED THE OTHER DECISIONS ALONG WITH PROVISIONS OF SECTIO N 43D. THE PERUSAL OF SECTION 43D CLEARLY SHOWS THAT IT APPLIES ONLY TO THE SCHED ULED BANKS AND THIS FACT WAS ADMITTED BY LD. COUNSEL ALSO THAT THE SAME APPLIES ONLY IN CASE OF FINANCIAL INSTITUTION OR SCHEDULED BANK. ADMITTEDLY, THE ASS ESSEE IS NOT A SCHEDULED BANK AND, THEREFORE, THE PROVISIONS OF SECTION 43D WERE NOT APPLICABLE. IN THE CASE OF 3 ACIT V PUNJAB STATE COOPERATIVE BANK LTD. (SUPRA), THE RELIEF WAS GRANTED MAINLY ON THE BASIS OF SECTION 43D AND, THEREFORE, THAT D ECISION COULD NOT HAVE BEEN RELIED ON FOR DISMISSING THE REVENUES APPEAL IN TH E PRESENT CASE. IN OUR OPINION, THE TRIBUNAL HAS INADVERTENTLY NOT NOTICED THAT DEC ISION OF ACIT V PUNJAB STATE COOPERATIVE BANK LTD (SUPRA) WAS RENDERED BECAUSE O F PROVISIONS OF SECTION 43D. THEREFORE, CLEARLY AN ERROR HAS CREPT INTO THE ORD ER OF THE TRIBUNAL. ACCORDINGLY, WE RECALL THE ORDER IN ITA NO. 526/CHD/2013 FOR THE PURPOSE OF RE-ADJUDICATION OF ONLY ONE ISSUE I.E REGARDING RELIEF GRANTED BY CIT( A) AGAINST INTEREST IN RESPECT OF NON- PERFORMING LOANS WHICH HAS BEEN RAISED THROUGH GROUND NO.1 BY THE REVENUE. IN OTHER WORDS, THE ORDER IS RECALLED FOR LIMITED P URPOSE OF RE-ADJUDICATION OF GROUND NO.1 AGAIN. 6. REGISTRY IS DIRECTED TO FIX THE DATE OF HEARING OF THE APPEAL IN ROUTINE MANNER BY ISSUING A FRESH NOTICE TO BOTH THE PARTIE S. 7. IN THE RESULT, MISC. APPLICATION IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/06/2015. SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 5 TH JUNE, 2015 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR