BARODA RAJASTHAN KSHETRIYA GRAMIN BANK, AJMER V. DEPUTY COMMISSIONER OF INCOME TAX, AJMER

SA 05/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3685 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SEEMA MEENA
• Assessee Lawyers: AJAY SOMANI
• Keywords: Application of stay
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM S.A NO. 05/JP/2018 (ARISING OUT OF ITA NO. 272/JP/2018) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-15 BARODA RAJASTHAN KSHETRIYA GRAMINE BANK, AJMER. PLOT NO. 2343, 2 ND FLOOR, RAJASTHAN PATRIKA BUILDING, AJMER. CUKE VS. THE DCIT, CIRCLE-1, AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAJB 1164 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI AJAY SOMANI (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SMT SEEMA MEENA (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 09/03/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 09/03/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPLICATION BY THE ASSESSEE BANK FOR SEEKING STAY AGAINST THE OUTSTANDING DEMAND OF RS. 16.81 CRORES ARISING FROM THE ASSESSMENT ORDER PASSED BY THE AO U/S 143(3) AND ENHANCEMENT MADE BY THE LD. CIT(A) FOR THE ASSESSMENT YEAR 2014-15. S.A. NO. 05/JP/2018 BARODA RAJASTHAN KSHETRIYA GRAMIN BANKVS. DCIT 2 2. WE HAVE HEARD LD. AR AS WELL AS LD. DR AND CONSI DERED THE RELEVANT MATERIAL ON RECORD. THE LD. AR OF THE ASSE SSEE HAS SUBMITTED THAT MAJOR DEMAND IN THE CASE OF THE ASSESSEE IS AR ISEN FROM DISALLOWANCE MADE BY THE AO ON ACCOUNT OF THE CONTR IBUTION FOR EMPLOYEES LEAVE ENCASHMENT POLICY TAKEN FROM LIC A ND OTHERS TO THE EXTENT OF RS. 35.19 CRORES. THOUGH THE LD. CIT(A) H AS GRANTED PARTIAL RELIEF OF RS. 99.76 LACS ON ACCOUNT OF THE PREMIUM PAYMENTS MADE TO LIC AND OTHERS FOR LEAVE ENCASHMENT FUND HOWEVER, T HE LD. CIT(A) ALSO MADE ENHANCEMENT ON ACCOUNT OF INTEREST ON THE INVE STMENT MADE BY THE ASSESSEE IN THE FUND WITH LIC OF LEAVE ENCASHME NT FUND OF RS. 3.80 CRORES. THEREFORE, THE DEMAND IN THE CASE WAS INCRE ASED FROM 16.96 CRORES TO 20.20 CRORES OUT OF WHICH THE ASSESSEE H AS PAID RS. 3.39 CRORES IN TWO INSTALLMENTS ON 28.02.2017 AND 21.08 .2017 OF RS. 2.54 CRORES AND RS. 84 LACS. THE LD. AR HAS FURTHER CONT ENDED THAT THIS ISSUE OF PAYMENT TO THE LIC AND OTHERS ON ACCOUNT LEAVE E NCASHMENT IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F COORDINATE BENCH DATED 14.08.2014 IN CASE OF JHALAWAR KENDRIYA SAHAK ARI BANK LTD. VS. ACIT IN ITA NO. 1032/JP/2011. HENCE, HE HAS CONTEN DED THAT WHEN THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE THAN DEMAND IN THIS CASE MAY STAYED TILL DISPOSAL OF THE ASSESSEE. S.A. NO. 05/JP/2018 BARODA RAJASTHAN KSHETRIYA GRAMIN BANKVS. DCIT 3 3. ON THE OTHER HAND, LD. DR HAS VEHEMENTLY OBJECTE D TO THE STAY OF DEMAND AND SUBMITTED THAT THE ASSESSEE IS A BANK AN D THERE IS NO FINANCIAL DIFFICULTY IN MAKING THE ENTIRE DEMAND. 4. HAVING CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS PERUSAL OF THE RELEVANT RECORD WE FIND THAT THE MAJOR DEMAND IN TH IS CASE IS ARISING FROM DISALLOWANCE MADE BY THE AO IN RESPECT OF THE PAYMENT OF PREMIUM TO THE LIC AND OTHERS FUND TOWARDS LEAVE EN CASHMENT POLICY. THIS ISSUE REQUIRES A CONSIDERATION WHETHER THE PAY MENT MADE BY THE ASSESSEE IS BASED ON THE ACTUAL ASCERTAINED LIABILI TY. THE LD. AR HAS FORCEFULLY CONTENDED THIS ISSUE IS COVERED IN FAVOU R OF THE ASSESSEE BY DECISION OF THE COORDINATE BENCH IN THE CASE OF JHA LAWAR KENDRIYA SAHAKARI BANK LTD. VS. ACIT (SUPRA). THEREFORE, ONC E THE LD. AR HAS STRONGLY RELIED UPON THE DECISION OF THE COORDINATE BENCH THEREFORE, WE FIND IT PROPER IF THE APPEAL OF THE ASSESSEE IS HE ARD AN OUT OF TURN IN PREFERENTIAL BASIS. THOUGH THE APPEAL OF THE ASSESS EE IS FIXED FOR HEARING ON 02.05.2018 HOWEVER, KEEPING IN VIEW OF T HE CONTENTION OF THE LD. AR THAT THE ISSUE IS COVERED BY THE DECISIO N OF THE COORDINATE BENCH WE PROPOSE THE HEARING OF APPEAL AND DIRECT T HE REGISTRY FIXED THE HEARING OF THE APPEAL OF THE ASSESSEE ON 15.03 .2018. THE DATE OF HEARING IS GRANTED AS PER CONVEYANCE OF LD. AR OF T HE ASSESSEE. S.A. NO. 05/JP/2018 BARODA RAJASTHAN KSHETRIYA GRAMIN BANKVS. DCIT 4 ACCORDINGLY, IN VIEW OF THE EARLY HEARING GRANTED W E REJECTED THE STAY APPLICATION OF THE ASSESSEE HOWEVER, THE AO IS DIRE CTED NOT TO TAKE ANY COERCIVE ACTION TILL 15.03.2018. IN THE RESULT, THE STAY APPLICATION IS REJECTED AN D EARLY HEARING IS GRANTED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/03/2018. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 09/03/2018. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- BARODA RAJASTHAN KSHETRIYA GRAMINE BANK, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT, CIRCLE-1, AJMER. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {S.A. NO. 05/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR