The Central Co-operative Bank Ltd., BHILWARA v. DCIT, BHILWARA

ITA 293/JODH/2016 | 2012-2013
Pronouncement Date: 31-08-2021 | Result: Dismissed

Appeal Details

RSA Number 29323314 RSA 2016
Assessee PAN AAAAT8126B
Bench Jodhpur
Appeal Number ITA 293/JODH/2016
Duration Of Justice 4 year(s) 11 month(s) 28 day(s)
Appellant The Central Co-operative Bank Ltd., BHILWARA
Respondent DCIT, BHILWARA
Appeal Type Income Tax Appeal
Pronouncement Date 31-08-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 31-08-2021
Date Of Final Hearing 20-06-2017
Next Hearing Date 20-06-2017
First Hearing Date 20-06-2017
Assessment Year 2012-2013
Appeal Filed On 02-09-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR BEFORE: SHRI SANDEEP GOSAIN JM & SHRI VIKRAM SING H YADAV AM ITA. NO. 293/JODH/2016 ASSESSMENT YEARS : 2012-13 THE CENTRAL CO-OPERATIVE BANK LTD. 52 BALAJI MARKET NEAR SUCHANA KENDRA BHILWARA VS. DCIT CIRCLE BHILWARA PAN/GIR NO.: AAAAT8126B APPELLANT RESPONDENT ASSESSEE BY : SH. SUNIL PORWAL (CA) REVENUE BY : SMT. SANCHITA KUMAR (CIT-DR) DATE OF HEARING : 11/08/2021 DATE OF PRONOUNCEMENT : 31/08/2021 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF LD. CIT (A) AJMER DATED 22.06.2016 FOR THE ASSESSMENT YEAR 2012-13 WHEREIN THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: 1. THE LD. CIT(A) HAS ERRED IN SUSTAINING THE ORDE R PASSED BY THE LD. AO WHICH IS BAD IN LAW AND ON FACTS AND THE VARIOUS ADDITIONS MADE WERE NOT JUSTIFIED. 2. THE LD. CIT(A) HAS ERRED IN SUSTAINING THE ADDIT ION OF RS. 1 03 36 161/- OUT OF ARREARS OF SALARY PROVIDED FOR BY THE APPELLANT. THE ENTIRE ADDITION SO SUSTAINED IS BAD IN LAW AND BAD ON FACTS. ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 2 3. THE LD. CIT(A) HAS ERRED IN NOT GIVING SPECIFIC FINDING WITH REGARD TO THE ALLOWABILITY OF PROVISION MADE FOR NP A ACCOUNTS AMOUNTING TO RS.6 50 824/- WHICH WAS APPARENTLY ALL OWABLE. THE APPELLANT PRAY THAT SUCH CLAIM MAY BE DIRECTED TO B E ALLOWED IN VIEW OF SPECIFIC PROVISION U/S 36(1)(VIIA). 4. THE INTEREST CHARGED U/S 234B 234C AND 234D IS BAD IN LAW AND BAD ON FACTS. 2. AT THE OUTSET THE LD. AR SUBMITTED THAT THE ASS ESSEE DOES NOT WISH TO PRESS GROUND NO. 3 OF ITS APPEAL. HENCE TH E SAME IS DISMISSED AS NOT PRESSED. 3. REGARDING GROUND NO. 1 AND 2 THE LD. AR SUBMITT ED THAT THE REGISTRAR CO-OPERATIVE SOCIETIES JAIPUR VIDE ORDER NO. 46(5)/SAVIRA/BANK-2/2009 PART 2 DATED 10.02.2012 HAS DIRECTED THE ASSESSEE TO APPLY TERMS & CONDITIONS FOR STAFF/OFFI CERS OF THE CENTRAL CO- OPERATIVE BANK LTD. BHILWARA AS PER 14 TH PAY AGREEMENT EXECUTION. ACCORDINGLY IT WAS AGREED TO PAY ARREARS W.E.F. 01 .01.2009 & THE DETAIL OF SUCH PAYMENTS / PROVISIONS ARE AS UNDER:- HEAD OF PROVISION TOTAL PROVISION MADE FOR THE YEAR AMOUNT PAID PERIOD OF PAYMENT (A) ARREAR OF SALARY RS.1 50 00 000/- 1 99 91 560/- (TOTAL RS.1 78 49 606 + RS.21 41 954/- FOR P.F. CONTRIBUTION OF EMPLOYER) 01.01.2009 TO 31.03.2012 ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 3 (B) SURRENDER LEAVE RS. 12 00 000/- RS. 9 07 239/- 01.01.2009 TO 31.03.2012 (C) BONUS & EXGRATIA PAYMENTS RS. 8 50 000/- RS. 7 41 300/- 01.01.2009 TO 31.03.2012 4. IT WAS SUBMITTED THAT OUT OF ABOVE PROVISIONS PE RTAINING TO PERIOD F.Y. 2011-12 AND EARLIER YEARS W.E.F. 01.01.2009 A N AMOUNT OF RS. 1 99 91 560/- FOR SALARY ARREARS RS. 9 07 239/ - FOR SURRENDER LEAVE PAYMENT AND BONUS & EX-GRATIA OF RS. 7 41 300/- HA VE BEEN PAID AS PER VOUCHERS ENCLOSED. THE A.O. HAS JUST DENIED THE CLAIM OF ASSESSEE FOR SUCH PROVISIONS FOR THE REASON THAT THE AGREEME NT LETTER IS SIGNED BY THE CONCERNED MANAGEMENT AND STAFF ON 16.04.2012 & THE ACTUAL PAYMENTS ARE NOT MADE BY THE ASSESSEE IN THE A.Y. 2 012-13. 5. IT WAS SUBMITTED THAT NO CARE FOR FOLLOWING FACT S & LEGAL ASPECTS HAS BEEN CONSIDERED. IT WAS SUBMITTED THAT THE ASS ESSEE THOUGH FOLLOWS MERCANTILE SYSTEM OF ACCOUNTING WHERE THE INCOME & EXPENSES ACCRUED / DUE THEORY APPLIES. BUT IT IS A MATTER OF DETERMINATION & CRYSTALLIZATION OF LIABILITY AS GOING CONCERN OF BUSINESS IS MORE IMPORTANT IN BUSINESS EXPEDIENCY EVEN IF SUCH MERCANTILE ACCOUNTING FOLLOWS. IN SUPPORT RELIAN CE WAS PLACED ON DELHI SMCC CONSTRUCTION INDIA LTD. V/S ACIT (2013) 38 TAXMAN.COM 146 (DEL) WHERE IT WAS HELD THAT EXPENSES OF EARLIER YE ARS ALLOWABLE IN CURRENT YEAR IF CRYSTALLIZED DURING THE YEAR AND TH E DECISION OF HONBLE RAJASTHAN HIGH COURT IN CASE OF M/S CHAMBEL FERTILI ZERS AND CHEMICALS LTD. V/S JCIT RANGE-2 KOTA (D.B. APPEAL NO. 52/201 8 DATED 31.07.2018) WHERE IT WAS HELD THAT TO UNDERSTAND WH EN THE LIABILITY CRYSTALLIZED WHEN THE LIABILITY IS DETERMINED IS MORE IMPORTANT. ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 4 6. IT WAS SUBMITTED THAT TO UNDERSTAND THE LEGAL SI TUATION IN THE PRESENT FACTS THE FOLLOWING DOCUMENTS / GOVERNMENT ORDERS NEED TO BE CONSIDERED: (1) COPY OF MINUTES OF BOARD OF DIRECTORS DATED 11.04.2 012 (2) INTIMATION TO REGISTRAR CO-OPERATIVE SOCIETY FOR I MPLEMENTATION OF 14 TH PAY COMMISSION (3) COPY OF DIRECTIONS & LETTER DATED 10.02.2012 OF REG ISTRAR CO- OPERATIVE SOCIETY JAIPUR (4) APPLICABILITY OF ARREAR PAYMENT W.E.F. 01.01.2009 (5) COPY OF MINUTES OF ADMINISTRATOR (COLLECTOR) OF CEN TRAL CO.- OPERATIVE BANK LTD. DATED 11.04.2012 (6) COPY OF AGREEMENT LETTER SIGNED BY STAFF & CONCERNE D MANAGEMENT DATED 16.04.2012 7. IT WAS SUBMITTED THAT ACCORDING TO ALL SUCH SANC TIONS DOCUMENTS THE 14 TH PAY COMMISSION WAS APPLICABLE AFTER THE CONCLUSION OF 13 TH PAY COMMISSION AND ACCORDINGLY THE ARREARS WERE TO BE PAID W.E.F. 01.01.2009. SINCE THE LIABILITY THOUGH PERTAINS TO PRIOR PERIOD BUT CRYSTALLIZED & DETERMINED DURING THE YEAR HENCE IT IS AN ASCERTAINED LIABILITY FOR THE YEAR & HAS TO BE ALLOWED IN THE Y EAR IRRESPECTIVE OF YEAR OF PAYMENT. IN THE INSTANT CASE IT WAS SUBMITTED THAT IT IS CLEAR THAT THE LIABILITY OF SUCH PAYMENTS OF ARREARS HAVE ARIS EN IN F.Y. 2011-12 (A.Y. 2012-13) & ALL THE FACTS WERE BEFORE THE A.O. / LD. CIT(A) TO DEDUCE THE FACTS. 8. IT WAS SUBMITTED THAT THE LD. CIT(A) HAS CONSIDE RED ONLY SUCH PART WHICH PERTAINS TO THE YEAR UNDER CONSIDERATION & HAS ALLOWED A ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 5 DEDUCTION OF RS. 67 13 839/- OUT OF TOTAL ADDITION OF RS. 1 70 50 000/- MADE BY THE AO. IT WAS SUBMITTED THAT THE ADDITION SO SUSTAINED BY THE LD CIT(A) AMOUNTING TO RS 1 03 36 161/- MAY THUS BE SET-ASIDE AND NECESSARY RELIEF BE PROVIDED TO THE ASSESSEE. 9. PER CONTRA THE LD. CIT/DR DRAWN OUR REFERENCE T O THE FINDINGS OF THE ASSESSING OFFICER AND SUBMITTED THAT NO DOUBT THE REGISTRAR CO- OPERATIVE SOCIETY HAS DIRECTED THE ASSESSEE TO FULF ILL THE WAGE COMPROMISE AGREEMENT. HOWEVER THE AGREEMENT BETWEE N THE LABOUR AND THE ASSESSEE MANAGEMENT WAS ONLY SIGNED ON 16.0 4.2012 AND EVEN NO PAYMENTS WERE MADE BY THE ASSESSEE DURING T HE FINANCIAL YEAR RELEVANT TO ASSESSMENT YEAR 2012-13. IT WAS ACCORDI NGLY SUBMITTED THAT IT WAS A CASE OF PROVISIONS TOWARDS ARREAR OF SALAR IES WHICH HAS NOT CRYSTALLIZED DURING THE YEAR UNDER CONSIDERATION AN D HAS BEEN RIGHTLY DISALLOWED BY THE ASSESSING OFFICER. 10. IT WAS FURTHER SUBMITTED THAT THE LD. CIT(A) O N FURTHER EXAMINATION HAS HELD THAT THE AMOUNT OF RS. 67 13 8 39/- PERTAINS TO THE IMPUGNED ASSESSMENT YEAR AND THE SAME WAS ALLOWED B Y HIM AND THE BALANCE ADDITION OF RS. 1 03 36 161/- WAS CONFIRMED . IT WAS ACCORDINGLY SUBMITTED THAT THERE IS NO INFIRMITY IN THE ORDER S O PASSED BY THE LD. CIT(A) AND THEREFORE THE GROUNDS TAKEN BY THE ASSE SSEE BE DISMISSED. 11. BEFORE WE PROCEED TO EXAMINE THE RIVAL CONTENTI ONS IT WOULD BE APPROPRIATE TO REFER TO THE FINDINGS OF THE LD. CIT (A) WHICH ARE CONTAINED AT PARA 4.1 4.2 AND 4.3 OF HIS ORDER WHICH READS A S UNDER:- ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 6 4.1 THIS GROUND OF APPEAL RELATES TO ADDITION OF R S. 1 70 50 000/- MADE BY THE AO FOR DISALLOWING THE PROVISION MADE B Y THE APPELLANT FOR PAYMENT OF ARREAR OF SALARY SURRENDER LEAVE BONUS ETC. THE ADDITION WAS MADE BY THE AO ON THE GROUND THAT THE AGREEMENT BETWEEN THE MANAGEMENT AND STAFF WAS SIGNED ON 16.04.2012 AND T HE ACTUAL PAYMENTS WERE NOT MADE BY THE ASSESSEE IN THE A.Y 2 012-13. 4.2 THE APPELLANT HAS FILED FOLLOWING WRITTEN SUBMI SSION ON THIS ISSUE: 1. THAT THE LEARNED DEPUTY COMMISSIONER OF INCOME TAX CIRCLE BHILWARA ERRED IN LAW AND FACTS IN DISALLOWING THE PROVISION MADE FOR PAYMENT OF ARREAR OF SALARY SURRENDER LEAVE BONUS AND EXGRATIA MADE AS PER PRIOR APPROVAL FROM THE REGISTRAR CO-OPERATI VES SOCIETIES/BOARD OF DIRECTORS OF THE BANK AND THUS MADE THE ADDITIO N OF RS.1 70 50 000/- WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND WITHOUT CONSIDERING THE FOLLOWING SUBMISSION/EVIDEN CE SUBMITTED DURING THE COURSE OF ASSESSMENT PROCEEDINGS. I) COPY OF RESOLUTION FOR ADOPTION OF FOURTEENTH PA Y AGREEMENT AND COPY OF SANCTION LETTER FROM REGISTRAR CO-OPERATIVE SOCIETIES FOR THE SAME. II) COPY OF ORDER OF SURRENDER LEAVE FROM REGISTRAR CO-OPERATIVE SOCIETY. III) COPY OF BOARD RESOLUTION FOR BONUS/ EXGRATIA. IV) PROOF FOR PAYMENT OF ARREAR OF SALARY RS. 1 99 91 560/- WHICH INCLUDES RS. 1 43 50 000/- PERTAINS TO PERIOD UP TO AY 2012-13. V) PROOF OF PAYMENT OF SURRENDER LEAVE OF RS. 9 29 576/- AGAINST THE PROVISION OF RS. 12.00 LACS. ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 7 VI) PROOF OF PAYMENT OF BONUS AND EXGRATIA RS. 7 41 300/- AGAINST THE PROVISION OF RS. 8 50 000/-. IN VIEW OF ABOVE ADDITION MADE BY THE LEARNED DEPUT Y COMMISSIONER OF INCOME TAX CIRCLE BHILWARA DESERVES TO BE DELETED. (II) THE ASSESSEE HAS FURTHER SUBMITTED AS UNDER:- IN CONTINUATION TO OUR SUBMISSION DATED 14/06/2016 AND AS DISCUSSED WE ARE PLEASE TO SUBMIT EMPLOYEE WISE WORKING SHEET OF ARREAR OF SALARY OF RS. 1 99 91 560/- OUT OF THIS ARREAR AMOU NT PERTAIN TO PERIOD 01/04/2011 TO 31/03/2012 OF RS. 67 13 839/- FOR WHI CH WE ARE ALSO ENCLOSING HEREWITH EMPLOYEE WISE WORKING SHEET OF A RREAR OF SALARY. THEREFORE WE HEREBY PRAY THAT KINDLY ALLOW ABOVE S AID AMOUNT IN THE YEAR OF ASSESSMENT AND GIVE SUITABLE DIRECTION TO L EARNED AO TO ALLOW REMAINING AMOUNT OF ARREAR IN THE YEAR OF PAYMENT I .E. IN THE NEXT YEAR AND OBLIGE. 4.3 I HAVE GONE THROUGH THE ASSESSMENT ORDER STATE MENT OF FACTS GROUNDS OF APPEAL AND WRITTEN SUBMISSION CAREFULLY. IT IS SEEN FROM THE DETAILS FILED BY THE APPELLANT VIDE LETTER DATED 22 .06.2016 THAT OUT OF THE TOTAL ARREAR OF SALARY OF RS. 1 99 91 560/- SALARY OF RS. 67 13 839/- PERTAIN TO THE PERIOD 01.04.2011 TO 31.03.2012. THE EMPLOYEE-WISE WORKING SHEET OF ARREAR SALARY PERTAINING TO THE PE RIOD 01.04.2011 TO 31.03.2012 HAS ALSO BEEN FILED BY THE APPELLANT. AS THE SALARY OF RS. 67 13 839/- PERTAIN TO THE PREVIOUS YEAR RELEVANT T O A.Y 2012-13 HENCE IT IS HELD THAT THIS IS A QUANTIFIED AND CRY STALLIZED LIABILITY PERTAINING TO A.Y 2012-13. THEREFORE FOR THE PURPO SE OF COMPUTING INCOME OF AY. 2012-13 THE ARREAR SALARY OF RS. 67 13 839/- PERTAINING ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 8 TO PREVIOUS YEAR RELEVANT TO A.Y 2012-13 HAS TO BE ALLOWED AS DEDUCTION. ACCORDINGLY OUT OF THE TOTAL ADDITION O F RS. 1 70 50 000/- MADE BY THE AO ADDITION OF RS. 67 13 839/- IS DELE TED AND THE REMAINING ADDITION OF RS. 1 03 36 161/- (RS.1 70 50 000 RS.67 13 839) IS HEREBY CONFIRMED. 12. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTED THAT OUT OF TOTAL PROVISION FOR ARREARS OF SALARY OF RS. 1 99 91 560/- THE LD CIT(A) HAS A LLOWED THE CLAIM TOWARDS PROVISION FOR LEAVE SALARY OF RS. 67 13 839 /- FOR THE REASON THAT THE SAME IS QUANTIFIED AND CRYSTALLIZED LIABILITY P ERTAINING TO A.Y 2012-13. THE REVENUE IS NOT IN APPEAL AGAINST ALLOWABILITY OF SAID PROVISION OF RS 67 13 839/- AND THE SAME HAS THUS A TTAINED FINALITY. 13. THE LIMITED ISSUE THEREFORE FOR CONSIDERATION B EFORE US IS ALLOWABILITY OF REMAINING PROVISION TOWARDS ARREARS OF SALARY AMOUNTING TO RS 1 03 36 161/- AND FOR THAT WHAT IS RELEVANT TO DETERMINE IS WHAT IS THE RELEVANT POINT OF TIME THE LIABILITY OF THE ASSESSEE TOWARDS ARREARS OF SALARY HAS ACTUALLY CRYSTALLIZED AND NOT THE YEA R TO WHICH SUCH ARREARS OF SALARY PERTAINS. WHERE THE LIABILITY HAS CRYSTA LLIZED DURING THE FINANCIAL YEAR RELEVANT TO IMPUGNED ASSESSMENT YEAR IT SHALL BE ALLOWED IN THE HANDS OF THE ASSESSEE IRRESPECTIVE OF THE YE AR TO WHICH IT PERTAINS. HOWEVER WHERE THE LIABILITY HAS CRYSTALL IZED DURING THE SUBSEQUENT FINANCIAL YEAR IT SHALL BE ELIGIBLE FOR ALLOWANCE IN THE SUBSEQUENT ASSESSMENT YEAR EVEN THOUGH A PART OF IT PERTAINS TO THE YEAR UNDER CONSIDERATION. THE PRINCIPLE OF CRYSTALL IZATION OF LIABILITY IS INHERENT IN THE MERCANTILE SYSTEM OF ACCOUNTING AND HAS BEEN WELL ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 9 ACCEPTED BY THE COURTS WHILE ALLOWING THE CLAIM TOW ARDS THE EXPENSES AND HAS BEEN UNDERSTOOD TO MEAN WHERE THE LIABILITY HAS BECOME DUE AND PAYABLE. IN OTHER WORDS WHERE THE OTHER PERSON CAN MAKE A LAWFUL CLAIM AGAINST THE ASSESSEE AND IN THE EVENT OF DEFA ULT THE MATTER MAY BE AGITATED BEFORE THE APPROPRIATE LEGAL FORUM. 14. IN THE INSTANT CASE IF WE LOOK AT THE SEQUENCE OF EVENTS WE FIND THAT THERE ARE DIRECTIONS ISSUED BY REGISTRAR CO-O PERATIVE SOCIETIES ON 10.02.2012 TO IMPLEMENT 14 TH PAY COMMISSION RECOMMENDATIONS THEREAFTER FOLLOWING SUCH DIRECTIONS THE BOARD OF DIRECTORS OF THE ASSESSEE CO-OPERATIVE BANK PASSED A RESOLUTION ON 1 1.04.2012 FOR IMPLEMENTING THE 14 TH PAY COMMISSION RECOMMENDATIONS THEREAFTER AN AGREEMENT HAS BEEN EXECUTED BETWEEN THE ASSESSEE CO -OPERATIVE BANK AND ITS EMPLOYEES AND STAFF MEMBERS ON 16.04.2012 T OWARDS IMPLEMENTATION OF THE 14 TH PAY COMMISSION RECOMMENDATIONS AND FINALLY MAJOR PAYMENTS TOWARDS ARREARS OF SALARY H AVE HAPPENED DURING NOVEMBER 2012. WE THEREFORE FIND THAT THE LIABILITY OF THE ASSESSEE CO- OPERATIVE BANK TO IMPLEMENT 14 TH PAY COMMISSION RECOMMENDATION AROSE ON ADOPTION OF RESOLUTION AT ITS MEETING OF T HE BOARD OF DIRECTORS READ ALONG WITH EXECUTION OF AGREEMENT WITH ITS EMP LOYEES AND STAFF MEMBERS. PRIOR TO THESE TWO SIGNIFICANT EVENTS WHI CH HAPPENED DURING THE FINANCIAL YEAR 2012-13 IT CANNOT BE SAID THAT THE ASSESSEE COOPERATIVE BANK HAS DECIDED TO IMPLEMENT AND ENFOR CE 14 TH PAY COMMISSION RECOMMENDATION IN RESPECT OF ITS EMPLOYE ES AND ON SAME ANALOGY PRIOR TO THESE TWO SIGNIFICANT EVENTS EVE N THE EMPLOYEES WERE NOT HAVING ANY LEGALLY ENFORCEABLE CLAIM TO IMPLEME NT 14 TH PAY COMMISSION RECOMMENDATION AGAINST THE ASSESSEE CO-O PERATIVE BANK. ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 10 THEREFORE THE CRYSTALLIZATION OF LIABILITY TO PAY ARREARS OF SALARY AND OTHER PAYMENTS TOWARDS SURRENDER LEAVE BONUS AND E X-GRATIA ETC. AS PER 14 TH PAY COMMISSION RECOMMENDATION AROSE DURING THE FIN ANCIAL YEAR 2012-13 RELEVANT TO SUBSEQUENT ASSESSMENT YEAR 2013-14 AND NOT DURING THE CURRENT FINANCIAL YEAR 2011-12 RELEVANT TO IMPUGNED ASSESSMENT YEAR 2012-13. THE ASSESSEE CO-OPERATIVE BANK THEREFORE SHALL BE ELIGIBLE TO CLAIM THE SAME IN THE SUBSEQUE NT ASSESSMENT YEAR 2013-14 AND NOT IN THE IMPUGNED ASSESSMENT YEAR. 15. IT MAY BE THAT THESE TWO SIGNIFICANT EVENTS HAV E HAPPENED WITHIN A MONTH OF CLOSE OF THE CURRENT FINANCIAL YEAR 2011 -12 AND BEING SIGNIFICANT IN NATURE AND HAPPENED PRIOR TO FINALIZ ATION AND AUDIT OF THE FINANCIAL STATEMENTS FOR THE CURRENT FINANCIAL YEAR THE ASSESSEE CO- OPERATIVE BANK BY WAY OF PRUDENCE AND AS MAY BE ADV ISED BY ITS AUDITORS DECIDED TO PROVIDE FOR SUCH LIABILITY IN T HE FINANCIAL STATEMENTS HOWEVER THE SAME DOESNT NECESSARY MEANT AND UNDER STOOD TO MEAN THAT IN ALL SUCH CASES WHERE LIABILITIES AND PROVI SIONS ARE PROVIDED BASIS SIGNIFICANT EVENT SUBSEQUENT TO CLOSE OF THE FINANC IAL YEAR WILL RESULT IN CRYSTALLIZATION OF LIABILITY AND ALLOWABLE DURING T HE SAME FINANCIAL YEAR. THE AO IS WELL WITHIN HIS JURISDICTION TO EXAMINE A LL SUCH CLAIMS AND THE ASSESSEE IS REQUIRED TO JUSTIFY SUCH CLAIMS AND DEM ONSTRATE WITH REASONABLE VERIFIABLE EVIDENCE THAT SUCH LIABILITY HAS CRYSTALLIZED DURING THE YEAR UNDER CONSIDERATION. 16. IN LIGHT OF AFORESAID DISCUSSION AND IN THE ENT IRETY OF FACTS AND CIRCUMSTANCES OF THE CASE THE GROUNDS SO TAKEN BY THE ASSESSEE CO- ITA NO.293/JODH/2016 THE CENTRAL CO-OPERATIVE BANK LTD. VS. DCIT BHILWA RA 11 OPERATIVE BANK FOR ALLOWABILITY OF CLAIM OF ARREARS OF SALARY OF RS 1 03 36 161/- IS HEREBY DISMISSED. 17. GROUND NO. 4 IS REGARDING CHARGING OF INTEREST U/S 234B 234C & 234D. NO SPECIFIC ARGUMENT HAS BEEN TAKEN BEFORE U S AND IN ANY CASE CHARGING OF INTEREST BEING CONSEQUENTIAL IN NATURE THE GROUND DOES NOT REQUIRE ANY SEPARATE ADJUDICATION. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DISMIS SED IN LIGHT OF AFORESAID DIRECTIONS. ORDER PRONOUNCED IN THE OPEN COURT ON 31/08/2021. SD/- SD/- ( SANDEEP GOSAIN ) (VIKRAM SINGH YADAV) JUDICIAL MEMBER ACCOUNTANT MEMBER JODHPUR DATED:- 31/08/2021. *GANESH KUMAR COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE CENTRAL CO-OPERATIVE BANK LTD. BHILWARA 2. THE RESPONDENT- DCIT CIRCLE BHILWARA 3. CIT 4. CIT(A) 5. DR ITAT JODHPUR. 6. GUARD FILE { ITA NO. 293/JODH/2016} BY ORDER ASST. REGISTRAR