RAMANATHANPURAM DISTRICT CENTRAL CO-OP. BANK LTD.,RAMANATHAPURAM V. ITO, WARD-1, RAMNAD

ITA 1415/CHNY/2025

AI Insights

The case involves the Ramanathapuram District Central Cooperative Bank Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was against the assessment order passed under sections 147 and 144B of the Income Tax Act, 1961 for the assessment year 2016-17. The primary contention in the appeal was regarding the disallowance of certain provisions and deductions claimed by the bank, which were initially disallowed by the Assessing Officer and upheld by the CIT (Appeals). The Tribunal admitted additional evidence submitted by the assessee and directed a re-examination of specific issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780475 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI; C.I.T
• Assessee Lawyers: R. PRASANNA VENKATESAN
• Keywords: Additional evidence

Judgement Text

" आयकर अपील य अ धकरण, ‘ए’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI \u0015ी एबी ट वक\u0019, \u000eया\u001aयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम$ BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:1415/Chny/2025 \u001aनधा%रण वष% / Assessment Year: 2016-17 Ramanathapuram District Central Cooperative Bank Limited, Post Box No.25, 265-E, Vandikkara Street, Ramanathapuram – 623 501. vs. ITO, Ward -1, Ramnad. [PAN:AAIFR-2500-A ] (अपीलाथ'/Appellant) (()यथ'/Respondent) अपीलाथ' क* ओर से/Appellant by : Shri. R. Prasanna Venkatesan, C.A. ()यथ' क* ओर से/Respondent by : Ms. E. Pavuna Sundari, C.I.T. सुनवाई क* तार ख/Date of Hearing : 06.08.2025 घोषणा क* तार ख/Date of Pronouncement : 09.10.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM: The present appeal is filed by the assessee against the order dated 20.03.2025 passed by the learned Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi, (hereinafter referred to as “CIT(A)”), dismissing the appeal filed by the assessee against the assessment Printed from counselvise.com :-2-: ITA. No.:1415//Chny/2025 order dated 21.09.2021 passed u/s.147 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y.2016-17. 2. The assessee is a District Level Co-operative Bank formed under Tamil Nadu Co-operative Societies Act. It is under the control of Rules and Regulations Governed by RBI. The main activity of the bank is to accept the deposits and lend money to the borrowers and also invest in various deposits and securities as allowed by the Co-operative Societies Act and RBI. The return of income for the year under consideration i.e. for A.Y.2016-17 has been filed on 17/10/2016 declaring total income at Rs.NIL. The said return was processed u/s.143(1) of the Income Tax Act,1961. 3. Subsequently, the case of the assessee was taken up for scrutiny and various additions were made, against which the assessee preferred an appeal against a few additions, which were further confirmed by the first appellate authority, against which the assessee is in appeal before us. The details are tabulated as below. Particulars Amount In Rs. Allowed/ Disallowe d by the Assessing Officer Allowed/ Disallowed by the CIT (Appeals) Whether appeal is preferred before ITAT Provision for Standard Provision 6,43,60,332 Disallowed Disallowed No Provision for sundry Dr Advance 2,28,31,424 Disallowed Disallowed No Provision for I Account Printed from counselvise.com :-3-: ITA. No.:1415//Chny/2025 74,90,705 Disallowed Disallowed No Cost of Management due 86,06,865 Disallowed Disallowed Yes Contingent 1,20,43,357 Allowed NA NA Deduction under section 36(1) (vii a) 20,70,41,743 Disallowed Disallowed Yes 4. With respect to the additions that are contested before us, i.e., “Cost of Management due” and “Deduction u/s.36(1)(via) of the Act”, the Ld.AR of the assessee filed additional evidence in terms of Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and also written submissions in support of its case and prayed that the additional evidence may be taken on record and prayed that the appeal may be allowed in its favour. 5. Per contra, the Ld.DR vehemently opposed the additional evidence that are filed and submitted that the order of the authorities below needs no interference and prayed that the appeal may be dismissed. 6. After going through the documents filed by the Ld.AR and the submissions made before us by both the parties, we are inclined to admit the additional evidence. Since, these additional evidence filed by the assessee needs to be verified by the Assessing Officer, we are of the view that the assessee could be given one more opportunity before the Assessing Officer to substantiate its case. Hence, we direct the Assessing Officer to decide the issues concerning “Cost of Management due” and “Deduction u/s.36(1)(via) of Printed from counselvise.com :-4-: ITA. No.:1415//Chny/2025 the Act” after considering the relevant submissions made by the assessee. The assessee is directed to be diligent in appearing before the Assessing Officer as and when called for and entitled to file the required relevant documents and records before the Assessing Officer, in support of its claim. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 09th October, 2025 at Chennai. Sd/- Sd/- (एबी ट वक\u0019 ) (ABY T VARKEY) \u000eया\u001aयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद य/Accountant Member चे\u000eनई/Chennai, .दनांक/Dated, the 09th October, 2025 sp आदेश क* (\u001aत0ल1प अ2े1षत/Copy to: 1. अपीलाथ'/Appellant 2. ()यथ'/Respondent 3.आयकर आयु3त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 1वभागीय (\u001aत\u001aन ध/DR 5. गाड% फाईल/GF Printed from counselvise.com "