M/s A.P.Grameena Vikas Bank, Warangal V. ACIT, Circle 1, Hyderabad

MA 68/HYD/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2084 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 21-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ESTHER N HANGHAL
• Assessee Lawyers: T UMAKANT
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER M.A.NO.68 & 69/HYD/2014 ARISING OUT OF ITA.NO.427 & 610/HYD/2013 - ASSESSMENT YEAR 2009-2 010 AP GRAMEENA VIKAS BANK, HANAMKONDA, WARANGAL PAN AAAJA-1351-N VS. ACIT, CIRCLE-1 WARANGAL (APPLICANT) (RESPONDENT) FOR ASSESSEE : MR. T. UMAKANT FOR RESPONDENT : MS. ESTHER N HANGHAL DATE OF HEARING : 13.06.2014 DATE OF PRONOUNCEMENT : 13.06.2014 ORDER PER SAKTIJIT DEY, J.M. BOTH THESE MISCELLANEOUS APPLICATIONS ARE FILED B Y THE ASSESSEE AGAINST THE ORDER OF ITAT DATED 13.03. 2014 IN ITA.NO.427/HYD/2013 (ASSESSEES APPEAL) AND ITA.NO. 610/HYD/2013 (REVENUE APPEAL) FOR A.Y. 2009-2010. 2. ASSESSEE SEEKS RECTIFICATION OF PARAS 3 AND 4 WHEREIN WHILE MENTIONING THE FACT OF DISALLOWANCES AND CONSIDERATION BY THE LD. CIT(A), INADVERTENT MISTAK ES HAVE CREPT IN. IT WAS POINTED OUT THAT AT PARAS 3 AND 4 OF THE ORDER MENTIONS THAT ITEM NO.6 OF DISALLOWANCE IS WITH REF ERENCE TO CLAIM UNDER SECTION 36(1)(VIIA). IN FACT, REVENUE H AS NOT COME ON THIS DISALLOWANCE EVEN THOUGH THE LD. CIT(A) GRA NTED RELIEF. THEREFORE, INSTEAD OF THAT, ASSESSEES CONTENTION I S WITH REFERENCE TO SME ADVANCES OF RS.89,65,000/- SHOULD HAVE BEEN MENTIONED OR ALTERNATELY, ASSESSEES CONTENTIO NS ON THE 2 MA.NOS.68 & 69/HYD/2014 ANDHRA PRADESH GRAMEENA VIKAS BANK, HANAMKONDA, WARANGAL . ABOVE SHOULD BE MENTIONED AS ITEM NO.7. CONSEQUENTL Y, THERE IS A CORRECTION TO BE MADE IN PARA 4. THE ORDER OF THE ITAT IN PARAS 3 AND 4 IS AS UNDER : 3. DURING THE ASSESSMENT PROCEEDINGS U/S.143(3) OF THE ACT, THE A.O. MADE THE FOLLOWING DISALLOWANCES : 1. BROKEN PERIOD INTEREST AMOUNTING TO RS.59,94,716/- 2. EXPENDITURE CLAIMED ON ACCOUNT OF AMORTISATION PROVIDED ON GOVT. SECURITIES OF RS.20,98,99,736/-. 3. EXPENDITURE CLAIMED ON ACCOUNT OF PROVISION FOR STA FF FRAUDS OF RS.79,66,27/-. 4. ACCRUED INTEREST ON NON-PERFORMING ASSETS AMOUNTING TO RS.2,76,00,000/-. 5. PROVISION FOR GRATUITY OF RS.20,99,18,264/- AND, 6. CLAIM U/S.36(1)(VIIA) OF RS.7,74,29,452/-. 4. THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHO DELETED THE ADDITIONS PERTAINING TO THE ITEMS MENTI ONED AT 1 TO 5 ABOVE WHILE HE CONFIRMED THE DISALLOWANCE IN RESPECT OF THE ITEM AT 6 OF THE ABOVE. 3. AS SEEN FROM THE REVENUE APPEAL, REVENUE HAS NO T CONSIDERED THE ISSUE STATED TO BE AT ITEM NO.6 AS T HE ORDER OF THE LD. CIT(A) SEEMS TO HAVE BEEN ACCEPTED. FURTHER , ASSESSEE IN ITS APPEAL CONTESTED THE ISSUE OF PROVISION OF S ME ADVANCES, WHICH, ITAT HAS CONSIDERED FROM PARA 16 ONWARDS IN ASSESSEES APPEAL. EVEN THOUGH, THE ISSUE HAS DECID ED ON MERITS, THERE WAS MISTAKE IN MENTIONING AT ITEM NO .6 ABOVE. THEREFORE, THE ISSUE STATED AS CLAIMED UNDER SECTIO N 36(1)(VIIA) OF RS.7,74,29,452/- SHOULD BE READ AS DISALLOWANCE OF PROVISION FOR SME ADVANCES OF RS.89,65,055/- BY MO DIFYING 3 MA.NOS.68 & 69/HYD/2014 ANDHRA PRADESH GRAMEENA VIKAS BANK, HANAMKONDA, WARANGAL . ITEM NO.6 IN PARA 3 OF THE ORDER. AS STATED ABOVE, PARA-4 DOES NOT REQUIRE ANY MODIFICATION. THEREFORE, ASSESSEES MISCELLANEOUS APPLICATIONS ARE CONSIDERED AS ALLOWE D TO THE ABOVE EXTENT. ORDER PRONOUNCED IN OPEN COURT O N 13.06.2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 13 TH JUNE, 2014 VBP/- COPY TO : 1. AP GRAMEENA VIKAS BANK, 2-5-8/1, OLD BUS DEPOT R OAD, RAMNAGAR, HANAMKONDA, WARANGAL 2. ACIT, CIRCLE-1, HYDERABAD. 3. CIT(A)-VI, HYDERABAD 4. CIT-VI, HYDERABAD 5. D.R. ITAT A BENCH, HYDERABAD