THE AKOLA URBAN CO-OP BANK LTD., Akola V. A.C.I.T. , AKOLA CIRCLE, Akola

SA 3/NAG/2017

• Counselvise Citation: [2014] 117 COUNSELVISE.COM (IT) 8889 (ITAT-NAGPUR)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 23-10-2014
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 22-02-2017
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Keywords: Application of stay

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER S.A. NO.3/NAG./2017 (ARISING OUT OF ITA NO.33/NAG../2017 ) (ASSESSMENT YEAR : 201314 ) THE AKOLA URBAN COOPERATIVE BANK LTD. JANKALYAN, OLD COTTON MARKET AKOLA 444 001 PAN AAAAT4082A . APPLICANT V/S ASSTT. COMMISSIONER OF INCOME TAX AKOLA CIRCLE, MURTIZAPUR ROAD AKOLA 444 107 . RESPONDENT ASSESSEE BY : SHRI C.J. THAKKAR A/W SHRI S.C. THAKKAR REVENUE BY : SHRI A.R. NINAWE DATE OF HEARING 24.03.2017 DATE OF ORDER 24.03 .2017 O R D E R PER SHAMIM YAHYA, A.M. BY WAY OF THIS STAY APPLICATION, ASSESSEE SEEKS STAY OF DEMAND OF OUTSTANDING TAX AND INTEREST AMOUNTING TO ` 9,39,17,375, FOR THE ASSESSMENT YEAR 201314. THE ISSUE IN THE MAIN APPE AL PERTAINS TO LOSS DUE TO EMBEZZLEMENT, FRAUD AND MALFEASANCE. TH IS WAS ORIGINALLY CLAIMED AS BAD DEBT. THE ASSESSING OFFICER HAS DISA LLOWED THE PAYMENT ON THE GROUND THAT IT CANNOT BE ALLOWED AS A BAD DE BT AS IT WAS NOT THE AKOLA URBAN COOPERATIVE BANK LTD. 2 WRITTENOFF. THE LEARNED COMMISSIONER (APPEALS) HAS AFFIRMED THE ASSESSING OFFICERS ACTION. THOUGH, THE LEARNED COM MISSIONER (APPEALS) HAS AGREED THAT THE AMOUNT WAS A BUSINESS LOSS BUT SHE HAD HELD THAT SUCH EMBEZZLEMENT / FRAUD CANNOT TAKE PLA CE WITHOUT THE CONNIVANCE OF THE MANAGEMENT. FOR THIS, SHE HAS IGN ORED THE SPECIAL AUDIT REPORT AND THE REPORT OF DIVISIONAL JOINT REG ISTRAR, COOPERATIVE SOCIETY (AUDIT), AT THE INSTANCE OF RESERVE BANK OF INDIA. FURTHER, THE LEARNED COUNSEL FOR ASSESSEE SUBMITTED THAT THE HON BLE JURISDICTIONAL HIGH COURT ON ASSESSEES PLEA THAT NO ITAT BENCH WAS FUNCTIONING AT NAGPUR, HAS GRANTED THE INTERIM STAY VIDE ORDER DAT ED 27 TH FEBRUARY 2017, WHICH READS AS UNDER: TILL THEN STAY OF COERCIVE RECOVERY OF BALANCE DEM AND SUBJECT TO CONDITION THAT THE BANK ACCOUNT OF THE P ETITION WITH RESERVE BANK OF INDIA SHALL ALWAYS CONTINUE TO HOLD AT LEAST THE AMOUNT DEMANDED I.S., OF 9,39,17,375. 2. PERCONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE OPPOSED THE STAY APPLICATION. 3. UPON CAREFUL CONSIDERATION, WE FIND THAT THE ASSESS EE HAS A PRIMAFACIE CASE, HENCE, WE GRANT STAY TO THE ASSES SEE FOR A FURTHER PERIOD OF 180 DAYS FROM THE DATE OF THIS ORDER ON T HE SAME GROUND AS SPECIFIED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE ABOVE STAY ORDER THAT THE BANK ACCOUNT OF THE ASSESSEE WITH TH E RESERVE BANK OF THE AKOLA URBAN COOPERATIVE BANK LTD. 3 INDIA SHALL ALWAYS CONTINUE TO HOLD ATLEAST THE AMO UNT DEMANDED I.E., ` 9,39,17,375. 4. IN THE RESULT, ASSESSEES STAY IS ALLOWED IN TERMS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 24.03.2017 SD/ - RAM LAL NEGI JUDICIAL MEMBER SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER NAGPUR, DATED: 24.03.2017 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, NAGPUR CITY CONCERNED; (5) THE DR, ITAT, NAGPUR; (6) GUARD FILE. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (DY./ASSTT. REGISTRAR) ITAT, NAGPUR