Assistant Commissioner of Income-Tax, Raichur v. M/s.Singdhanur Urban Co-opewrative Bank Ltd.,, Bellary

ITA 2294/BANG/2016 | 2009-2010
Pronouncement Date: 27-11-2019 | Result: Allowed

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Appeal Details

RSA Number 229421114 RSA 2016
Assessee PAN AACAS9025L
Bench Bangalore
Appeal Number ITA 2294/BANG/2016
Duration Of Justice 2 year(s) 11 month(s) 4 day(s)
Appellant Assistant Commissioner of Income-Tax, Raichur
Respondent M/s.Singdhanur Urban Co-opewrative Bank Ltd.,, Bellary
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2019
Appeal Filed By Department
Order Result Allowed
Bench Allotted C
Tribunal Order Date 27-11-2019
Last Hearing Date 15-02-2018
First Hearing Date 19-11-2019
Assessment Year 2009-2010
Appeal Filed On 23-12-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE JUDICIAL MEMBER ITA. NO. 2294 /BANG/201 6 (ASSESSMENT YEAR: 20 0 9 - 10 ) ASST. COMMISSIONER OF INCOME TAX CIRCLE 1 RAICHUR . .APPELLANT VS. M/S. SINDHANUR URBAN CO - OPERATIVE BANK LTD. BLOCK NO.10 MOKA ROAD GANDHI NAGAR BELLARY - 583 001 RESPONDENT. PAN AACAS9025L ASSESSEE BY: SHRI S.V. RAVISHANKAR ADVOCATE. REVENUE BY: S MT. R. PREMI JCIT (D.R) DATE OF HEARING : 19.11 .2019 DATE OF PRONOUNCEMENT : 27 .11 .2019 O R D E R PER SHRI PAVAN KUMAR GADALE JM : THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) GULBARGA PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT 1961 (THE ACT). 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 2 ITA NO. 2294/BANG/2016 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CO - OPERATIVE BANK REGISTERED UNDER KARNATAKA CO - OPERATIVE SOCIETY AND BANKING REGULATION ACT AND FILED THE RETURN OF INCOME ON 7.9.2009 WITH TOTAL INCOME OF RS.91 98 170. SUBSEQUENTLY THE CAS E WAS SELECTED FOR SCRUTINY AND NOTICE UND ER SECTION 143(2) OF THE ACT ALONG WITH QUESTIONNAIRE WAS ISSUED . IN RESPONSE TO NOTICE THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FURNISHED THE DETAILS AND PRODUCED BOO KS OF ACCOUNT S BILLS AND VOUCHERS. THE ASSESSING OFFICER FOUND THAT THERE ARE ACCUMULATED LOSSES OF AMALGAMATION ALONG WITH THE OTHER BANKS IN THE SAID ASSESSMENT YEAR . WHEREAS THE ASSESSEE HAS CLAIMED ONLY 1/5 TH OF LOSS OF RS.1 20 10 773 AND THE BA LANCE TO BE INTENDED TO BE 3 ITA NO. 2294/BANG/2016 SET OFF FOR 4 A SSESSMENT Y EARS AGAINST THE PROFIT EARNED . THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS ON 28.11.2011 AND 18.11.2011 EMPHASISING THAT AS PER THE PRO VISIONS OF SECTION 72AB (1 ) OF THE INCOME TAX ACT THE ASSESSEE BANK IS ENTITLED TO CLAIM THE FULL AMOUNT OF LOSS OF RS.6 00 53 872 AS AGAINST 1/5 TH CLAIMED . THE ASSESSING OFFICER WA S SATISFIED WITH RESPECT TO DETERMINATION OF LOSS BUT IS OF THE OPINION THAT SINCE THE ASSESSEE HA S NOT CLAIMED SUCH LOSS IN THE RETURN OF INCOME FILED ON 7.9.2009 OR BY FILING REVISED RETURN . HENCE ASSESSING OFFICER REJECTED THE ASSESSEE'S CLAIM OF COMPLETE LOSS IN THE ASSESSMENT PROCEEDINGS AND PASSED ORDER UND ER SECTION 143(3) OF THE ACT DT.30.11.2 011. AGGRIEVED BY THE A.OS ORDER THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS). ON THE DISPUTED ISSUE WITH RESPECT TO SET OFF OF ACCUMULATED LOSS ON AMALGAMATION LEARNED CIT (APPEALS) DEALT AT PAGE 2 PARA 4.1 TO 4.12 OF THE ORDER AND RELYING ON THE CBDT CIRCULAR JUDICIAL DECISIONS AND FINALLY OBSERVED AT PAGES 6 & 7 OF THE ORDER WHICH READ AS UNDER : 4 ITA NO. 2294/BANG/2016 AGGRIEVED BY THE CIT (APPEALS) ORDER THE REVENUE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE LEARNED CIT(APPEALS) HAS ERRED IN GRANTING RELIEF OF SET OFF OF LOSSES OF EARLIER YEARS AGAINST THE CURRENT YEAR INCOME IRRESPECTIVE OF THE FACT T HAT THE ASSESSEE HAD NEITHER CLAIMED TOTAL LOSS IN THE RETURN OF INCOME OR BY FILING REVISED RETURN OF INCOME AND RELIED ON THE PROVISIONS OF SECTION 72AB AND 5 ITA NO. 2294/BANG/2016 JUDICIAL DECISIONS AND PRAYED FOR ALLOWING THE REVENUES APPEAL. CONTRA THE LEARNED AUTHORISED REPRESENTATIVE RELIED ON THE ORDERS OF LEARNED CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTED ISSUE ENVISAGED BY LD. DR IN RESPECT OF LEARNED CIT(APPEALS) GRANTING RELIEF OF ENTIRE SET OFF OF LOSSES OF EARLIER YEARS AGAINST THE CURRENT YEAR INCOME. WE FIND THAT THE ASSESSEE HAS MADE SUBMISSIONS ON THE SET OFF CLAIM BEFORE THE ASSESSING OFFICER BUT WAS DENIED IN THE ASSESSMENT PROCEEDINGS . WHEREAS THE LEARNED CIT(APPEALS) HAS GRANTED RELIEF WITHOUT VERIFYING THE CLAIM OF THE ASSESSEE. AS RIGHTLY OBSERVED BY LEARNED CIT (APPEALS) THE CLAIM MADE BY THE ASSESSEE COULD BE ENTERTAINED BY APPELLATE AUTHORITIES. WE CONSIDERING THE SUBMISSIONS OF LD. DR A ND JUDICIAL DECISIONS RELIED BY THE REVENUE ARE OF THE OPINION THAT THE QUANTUM OF DEDUCTION CLAIMED REQUIRE S VERIFICATION. ACCORDINGLY WE RESTORE ENTIRE DISPUTED ISSUE FOR LIMITED PURPOSE TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF QUANTUM OF CLAIM MADE BY THE ASSESSEE. 6. IN THE RESULT THE REVENUES APPEAL IS ALLOWED FOR STATISTICAL PUR POSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 T H NOV. 2019. S D / - S D / - ( B.R. B ASKARAN ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 7 .11. 2019. *REDDY GP 6 ITA NO. 2294/BANG/2016 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR ITAT BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE