Andhra Bank, Hyderabad V. Dy.CIT, Circle-1(1), Hyderabad

MA 79/HYD/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2058 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 15-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S O LGY JOSE T KOTTARAM
• Keywords: Rectification of order; Opportunity of being heard; Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SRI SAKTIJIT DEY, JUDICIAL MEMBER M.A. NO. 79/HYD/2014 (IN ITA NO.1644 /HYD/08) : ASST. YEAR: 2005-06 ANDHRA BANK, HYDERABAD. (PAN AABCA7375C) V/S- DY.CIT, CIR-1(1), HYDERABAD. (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI S. ANANTHAN RESPONDENT BY : SRI SOLGY JOSE T. KOTTARAM DATE OF HEARING: 27-6-2014. DATE OF PRONOUNCEMENT 2 7-6-2014. O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THIS MISC. APPLICATION FOR RECTIFICATION OF MISTAKE, WHICH ACCORDING TO IT, HA S CREPT INTO THE ORDER DATED 30/4/2013 PASSED IN ITA NO.1644/HYD/08 BY THIS TRIBUNAL. IN THE MISC. APPLICATION, THE ASSESSEE HAS STATED AS UNDER:- (A) 2 ND ADDITIONAL GROUND RAISED BY THE APPELLANT READS AS UNDER- THE APPELLANT SUBMITS THAT IT HAD WRITTEN OFF RS.109,69,96,172 AS BAD DEBTS IN RESPECT OF ITS NON RURAL BRANCHES DURING THE ASSESSMENT YEAR AND THAT THE SA ME BE ALLOWED AS DEDUCTION UNDER SECTION 36(1)(VII) OF TH E INCOME- TAX ACT, 1961. B) THUS, THE GROUND FILED BY THE APPELLANT RELATES TO THE CLAIM OF BAD DEBTS WRITTEN OFF IN RESPECT OF NON RU RAL BRANCHES M.A.NO79 OF 2014 ANDHRA BANK, HYDERABAD. ======================= 2 DURING THE ASSESSMENT YEAR FOLLOWING THE RATIO LAID DOWN BY HON. SUPREME COURT IN THE CASE OF CATHOLIC SYRIAN BANK VS. CIT (2012 18 TAXMAN.COM 282 (SC) (C) THE SUBJECT MATTER OF APPEAL BEFORE THE LEARNE D CIT RELATES TO THE NON DEDUCTION OF RECOVERIES OF BAD D EBTS IN RESPECT OF NON RURAL BRANCHES WHICH WERE NOT ALLOWE D DURING THE PREVIOUS ASSESSMENT YEARS WHEREAS THE ADDITIONA L GROUND FILED BY THE APPELLANT RELATES TO THE BAD DEBTS WRI TTEN OFF IN RESPECT OF NON RURAL BRANCHES DURING THE ASSESSMENT YEAR. THE GROUND RAISED BEFORE THE HONBLE ITAT WAS NOT C ONNECTED WITH THE GROUND BEFORE THE LEARNED CIT (A). THEREF ORE, THE OBSERVATIONS OF THE HONBLE ITAT IN LINKING BOTH TH E GROUNDS, WITH DUE RESPECT, REQUIRES A CORRECTION. AS THE ABOVE IS A MISTAKE APPARENT FROM RECORDS, T HE APPELLANT PRAYS THE TRIBUNAL TO KINDLY SUITABLY RECTIFY THE O RDER DATED 30-4- 2013 BY PASSING APPROPRIATE ORDERS. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD. ON PERUSING THE ORDER DATED 30-4-2013 OF T HE ITAT PASSED IN ITA NO.1644/HYD/08, WE FIND THAT THOUGH THE TRIBUNA L IS CORRECT IN FOLLOWING THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN CATHOLIC SYRIAN BANK VS. CIT (343 ITR 270) TO THE EFFECT THA T ASSESSEE CAN CLAIM DEDUCTION BOTH U/S 36(1)(VII) AND 36(1)(VIIA) AND REMITTING THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING AFRESH KEEPING IN VIEW THE RATIO LAID DOWN BY THE HONBLE S UPREME COURT IN CASE OF CATHOLIC SYRIAN BANK (SUPRA), BUT THE TRIB UNAL HAS MISTAKENLY DISCUSSED FACTS IN PARA 52 TO 56 WHICH A RE NEITHER GERMANE TO THE ISSUE IN DISPUTE NOR ANY ISSUE RELAT ING TO THOSE FACTS EITHER DISPUTED BY THE ASSESSEE OR THE DEPARTMENT. IN THE CIRCUMSTANCES, WE ARE OF THE VIEW, AS THERE IS A M ISTAKE APPARENT ON THE FACE OF RECORD AS PER SEC. 254(2) OF THE ACT, S AME IS REQUIRED TO BE RECTIFIED. THEREFORE, AFTER CONSIDERING THE FA CTS OF THE CASE, IN THE M.A.NO79 OF 2014 ANDHRA BANK, HYDERABAD. ======================= 3 LIGHT OF SUBMISSION MADE BEFORE US, WE SUBSTITUTE P ARAGRAPHS 51 TO 56 AS APPEARING IN PAGES 24 TO 27 OF ITA 1644/HYD/20 08 DATED 30/4/2013 WITH THE FOLLOWING:- 51. THE SECOND ADDITIONAL GROUND RAISED BY THE ASS ESSEE RELATES TO DEDUCTION U/S 36(1)(VII) CLAIMED BY THE ASSESSEE TOWARDS BAD DEBTS WRITTEN OFF BY NON USUAL BRANCHE S AMOUNTING TO RS.109,69,96,172/-. 52. IT IS THE CONTENTION OF THE LEARNED AR THAT AS PER THE RATIO LAID DOWN BY HONBLE SUPREME COURT IN CASE OF CATHOLIC SYRIAN BANK VS. CIT (SUPRA), THE ASSESSEE IS ELIGIB LE TO CLAIM DEDUCTION BOTH U/S 36(1)(VII) AND 36(1)(VIIA) OF TH E ACT. 53. FURTHER, IT IS CLAIM OF THE ASSESSEE THAT IT HAS WRITTEN OFF THE AMOUNT OF RS. 109,69,96,172/- AS BAD DEBTS REL ATING TO ITS NON RURAL BRANCHES DURING THE ASSESSMENT YEAR UNDER DISPUTE. 54. IT IS ALSO THE CONTENTION OF THE ASSESSEE THAT THE ISSUE HAS BEEN DECIDED IN ITS FAVOR BY CO-ORDINATE BENCH OF THIS TRIBUNAL IN ITS OWN CASE FOR ASSESSMENT YEAR 2006-0 7 IN ITA NO.97/HYD/10. 55. IN CASE OF CATHOLIC SYRIAN BANK VS. CIT (SUPRA) , THE HONBLE SUPREME COURT HAS HELD THAT AN ASSESSEE IS ELIGIBLE TO CLAIM DEDUCTION BOTH U/S 36(1)(VII) AND 36(1)(VIIA) SUBJECT TO THE RESTRICTIONS UNDER PROVISO TO SEC. 36(1)(VIIA). 56. THEREFORE, CONSIDERING THE FACTS OF THE PRESENT CASE IN THE LIGHT OF THE RATIO LAID DOWN BY THE HONBLE APE X COURT IN CASE OF CATHOLIC SYRIAN BANK VS. CIT (SUPRA), WE REMIT THE ISSUE TO THE FILE OF THE ASSESSING OFFICER, TO DECI DE IT AFRESH AFTER VERIFYING THE DETAILS SUBMITTED BY THE ASSESS EE AND FOLLOWING THE DECISION OF THE HONBLE SUPREME COURT IN CASE OF CATHOLIC SYRIAN BANK VS. CIT (SUPRA). THE ASSESSIN G OFFICER MUST AFFORD AN OPPORTUNITY OF BEING HEARD TO THE AS SESSEE. THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. M.A.NO79 OF 2014 ANDHRA BANK, HYDERABAD. ======================= 4 3. IN THE RESULT, THE MISCELLANEOUS APPLICATION IS ALLO WED TO THE EXTENT INDICATED ABOVE. ORDER WAS PRONOUNCED IN THE COURT ON 27-6-2 014. S D/ - (B. RAMAKOTAIAH) SD/- (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER. DATED:27-6-2014. COPY FORWARDED TO: 1. ANDHRA BANK, 5 - 9 - 11, DR. PATTABHI BHAVAN, SAIFABAD, HYDERABAD. 2. DY.CIT, CIR-1(1), HYDERABAD. 3. CIT(A)-II, HYDERABAD. 4. THE CIT-1, HYDERABAD. 5. THE DR, ITAT, HYDERABAD. JMR * M.A.NO79 OF 2014 ANDHRA BANK, HYDERABAD. ======================= 5 M.A.NO79 OF 2014 ANDHRA BANK, HYDERABAD. ======================= 6