The Karimnagar District Co-Operative Central Bank Limited, Karimnagar V. Income Tax Officer, Ward-2, Karimnagar

MA 90/Hyd/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 5185 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘ A ’ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing) M.A. No.90/Hyd/2021 (In ITA No.532/Hyd/2016) (Assessment Year : 2013-14) The Karimnagar District Co-operative Central Bank Limited, Karimnagar. PAN AABAT0905H .....Appellant. Vs. Income Tax Officer, Ward 2, Karimnagar. .....Respondent. Appellant By : Shri P. Murali Mohan Rao, C.A. Respondent By : Shri Sunil Gowtham. (D.R.) Date of Hearing : 11.02.2022. Date of Pronouncement : 16.02.2022. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s miscellaneous application filed u/s. 254(2) of the Income Tax Act, 1961 ('the Act') seeks to recall our impugned order dt.24.01.2021partly accepting the main appeal in ITA No.532/Hyd/2018 thereby restoring its 2 MA No.90/Hyd/2021 section 36(1)(viii) deduction claim to the Assessing Officer for adjudication. Heard both sides. Case file perused. 2. The assessee's sole substantive grievance pleaded in the instant miscellaneous application is that our impugned order has not adjudicated its former grievance seeking bad debts deduction admissible in case of a specified co-operative institution u/s.36(1)(viia) of the Act. Mr. Sunil Gowtham, on the other hand, had vehemently argued in light of CIT Vs. Reliance Telecom Ltd. (2021) 133 taxmann.com 41 (SC) and ACIT Vs. Saurashtra Kutch Stock Exchange Ltd. (2008) 305 ITR 227 (SC) that such a rehearing is nowhere permissible in law. 3. We have given our thoughtful consideration to the foregoing rival contentions and find merit in assessee's stand. This is for the reason that the impugned bad debts deduction claim u/s.36(1)(viia) involving the specified rural branches has been neither considered nor adjudicated in the tribunal's order in issue. We, therefore, are of the 3 MA No.90/Hyd/2021 opinion that the same indeed amounts to an apparent error on record. The fact also remains that our impugned order has already restored section 36(1)(viii) issue back to the Assessing Officer for necessary adjudication and verification. We therefore follow the very course of action qua the impugned section 36(1)(viia) issue as well. The assessee's corresponding substantive grounds shall also be deemed to have been accepted for statistical purposes henceforth. The learned Assessing Officer shall indeed decide the same as per law in consequential proceedings. 4. The assessee's instant Miscellaneous Application is allowed in above terms. Order pronounced in the open court on 16th Feb., 2022. Sd/- Sd/- (L.P. SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.16.02.2022. * Reddy gp 4 MA No.90/Hyd/2021 Copy to : 1. The Karimnagar District Co-operative Central Bank Limited, C/o P. Murali & Co., C.As, 6-3-655/2/3, 1st Floor, Somajiguda, Hyderabad. 2. ITO, Ward 2, Karimnagar. 3. Pr. C I T-2, Hyderabad. 4. CIT(Appeals)-2, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.