JAIPUR THAR GRAMIN BANK, Jaipur v. DCIT, Jaipur

MA 116/JPR/2017 | 2013-2014
Pronouncement Date: 28-11-2017 | Result: Partly Allowed

Appeal Details

RSA Number 11623124 RSA 2017
Assessee PAN AAAJJ0519R
Bench Jaipur
Appeal Number MA 116/JPR/2017
Duration Of Justice 3 month(s) 14 day(s)
Appellant JAIPUR THAR GRAMIN BANK, Jaipur
Respondent DCIT, Jaipur
Appeal Type Miscellaneous Application
Pronouncement Date 28-11-2017
Appeal Filed By Assessee
Tags Jaipur Thar Gramin Bank
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 28-11-2017
Assessment Year 2013-2014
Appeal Filed On 14-08-2017
Judgment 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 HKKXPUN] YS[KK LNL; OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND AM AND SHRI KUL BHARAT JM M.A. NO. 116/JP/2017 ARISING OUT IF ITA NO. 1040/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14. JAIPUR THAR GRAMIN BANK KISHAN BHAWAN LAL KOTHI TONK ROAD JAIPUR. CUKE VS. DCIT CIRCLE-2 REVENUE BUILDING STATUE CIRCLE JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAJJ 0519 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR (ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.A. VERMA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27.10.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28/11/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT JM. THE ASSESSEE HAS FILED THIS MISCELLANEOUS APPLICAT ION NO. 116/JP/2016 SEEKING RECTIFYING OF MISTAKE CREPT IN THE TRIBUNAL S ORDER DATED 25.05.2017 PASSED IN ITA NO. 1040/JP/2016 PERTAINING TO THE ASSESSMEN T YEAR 2013-14. 2. IT IS CONTENDED BY THE LD. COUNSEL FOR THE ASSES SEE THAT INADVERTENTLY THE GROUND NO. 1 OF THE ASSESSEES APPEAL HAS NOT BEEN DECIDED BY THE TRIBUNAL THAT TANTAMOUNT TO MISTAKE APPARENT FROM RECORD. GROUND NO. 1 OF THE ASSESSEES APPEAL IS REPRODUCES AS UNDER:- 1. THAT THE LEARNED CIT(A)-1 JAIPUR NOT ALLOWED A ND NO ACCEPTED THE REVISED RETURN FILED BY THE ASSESSEE BANK BEFORE CO MPLETION OF ASSESSMENT PROCEEDINGS. 2 M.A. NO. 116/JP/2017. JAIPUR THAR GRAMIN BANK JAIPUR. 3. ON THE CONTRARY LD. D/R OPPOSED THE SUBMISSIONS . 4. WE HAVE HEARD THE RIVAL CONTENTIONS. WE FIND TH AT IN PARA NO. 2 OF THIS ORDER SOUGHT TO BE RECTIFIED WHICH IS OBSERVED AS UNDER: - ALL THE GROUNDS OF APPEAL ARE INTERLINKED AND THE MAIN ISSUE INVOLVED IS AGAINST DISALLOWED THE CLAIM OF RS. 4 91 27 253/- C LAIMED BY THE ASSESSEE U/S 36(1)(V) OF THE INCOME TAX ACT 1961 (HEREINAFTER R EFERRED TO AS THE ACT) FOR THE PAYMENT TO GRATUITY FUND IN THE REVISED RETURN. FURTHER THIS TRIBUNAL IN PARA 8 WHICH IS OBSERVED AS UNDER:- 8. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PAR TIES PERUSED THE MATERIAL AVAILABLE ON RECORD AND ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE LD. CIT(A) HAD REJECTED THE CLAIM ON THE BASIS THAT THE FILING OF REVISED RETURN OUGHT TO HAVE BEEN MAD E BEFORE 21.03.2015. IN THE INSTANT CASE THE ASSESSEE MADE CLAIM DURING TH E ASSESSMENT PROCEEDINGS BY FILING REVISED RETURN ON 24.02.2016. UNDISPUTED LY TIME FOR FILING RETURN U/S 139(5) HAD ALREADY ELAPSED. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SUCH CLAIM WAS ALLOWED IN THE ASSESSEES OWN CASE P ERTAINING TO THE ASSESSMENT YEAR 2011-12 IN ITA NO. 120/JP/2015 WHER EIN THE TRIBUNAL HAS HELD AS UNDER:- AT THE OUTSET WE HAVE BEEN INFORMED THAT THE ISSUE AS RAISED BY THE REVENUE DEPARTMENT NOW STOOD COVERED BY THE ORDER OF THE TRIBUNAL PRONOUNCED IN ASSESSEE'S OWN CAN FOR A.Y. 2010-11. EVEN LD. CIT(A) HAS FOLLOWED THE DECISION OF THE ITAT IN ASS ESSEE'S OWN CASE FOR A.YS 2007-08 AND 08-09. FOR THE SAKE OF READY R EFERENCE THE RELEVANT OBSERVATIONS OF LD. CIT(A) ARE REPRODUCED BELOW:- '3.4 I HAVE DULY CONSIDERED SUBMISSIONS OF THE APPE LLANT AND AO'S CONTENTION. I HAVE ALSO PERUSED THE MATERIAL O N RECORD AND DULY CONSIDERED THE FACTUAL MATRIX OF THE CASE AS A LSO THE APPLICABLE LEGAL POSITION. THE ASSESSEE BANK IS THE REGIONAL RURAL BANK WHICH IS ESTABLISHED UNDER THE REGIONAL RURAL BANKS ACT 1976. AS PER CBDT CIRCULAR THE REGIONAL RURAL BANKS ARE COVERED UNDER THE DEFINITION OF CO-OPERATIVE BANK THIS FAC T ALREADY 3 M.A. NO. 116/JP/2017. JAIPUR THAR GRAMIN BANK JAIPUR. ACCEPTED BY THE DEPARTMENT IN THE ASSESSEE'S CASE I N PREVIOUS YEARS. THE APPELLANT CREATED A GRATUITY TRUST WITH ASSOCIATION OF LIC FOR THE BENEFIT OF ITS EMPLOYEES. DURING THE YE AR UNDER APPEAL THE APPELLANT DEBIT AND PAID A SUM OF RS. 12 6656857/- TO LIC OF INDIA FOR GRATUITY FUND. IT IS SUBMITTED THAT THE APPELLANT FORMED A GRATUITY TRUST FOR THE BENEFIT O F ITS EMPLOYEES FOR PAYMENT OF DEATH CUM RETIREMENT GRATUITY WITH L IC OF INDIA AND FILED AN APPLICATION ALONG WITH TRUST DEED AND OTHER NECESSARY PAPERS TO THE INCOME TAX DEPARTMENT ON 4/ 9/2000 FOR APPROVAL OF GRATUITY FUND. IT IS ALSO SUBMITTED THAT DURING THE YEAR UNDER APPEAL THE APPELLANT DEPOSITED A SUM OF RS. 12 66 56 857/- TO THE LIC FOR THE GRATUITY FUND WHI CH IS ELIGIBLE DEDUCTION U/S 36(1)(V) OF THE INCOME TAX ACT 1961 AND IF NOT ALLOWED IN THIS SECTION THAN IT IS ALLOWED U/S 37(1 ) OF THE INCOME TAX ACT 1961. IN SUPPORT ARGUMENT APPELLANT HAS RE LIED ON RULINGS MENTIONED IN PARA 3.2 ABOVE IN WHICH TRIBUN AL HON'BLE HIGH COURT AND EVEN HON'BLE SUPREME COURT SAID THAT IF THE PAYMENT MADE TO BENEFIT OF EMPLOYEES THAN IT IS BUS INESS EXPENDITURE AND ALLOWABLE U/S 37(1) OF THE INCOME T AX ACT 1961. ON PERUSAL OF DECISION OF JURISDICTION ITAT IN ASSE SSEE'S OWN CASE FOR A.Y 2007-08 & 2008-09 IN ITA NO. 940/JP/20 11 & 196/JP/2012 RESPECTIVELY AND CIT(A) -1'S ORDER FOR AY 10-11 VIDE ITA NO. 259/12-13 IT IS ALSO SEEN THAT CLAIM OF GRATUI TY HAS BEEN ALLOWED U/S 36(1)(V) READ WITH SECTION 40(A)(9) OF THE ACT. I HAVE CAREFULLY PERUSED THE ORDER OF THE AO AND TH E SUBMISSIONS OF THE AR. THE FACT OF THE MATTER IS TH AT THE DISALLOWANCE OF THE PAYMENT OF GRATUITY TO AN UNAPPROVED GRATUIT Y FUND WAS CONSIDERED BY THE HON'BLE ITAT IN THE CASE OF THE A SSESSEE FOR AY 2007-08 VIDE ITS ORDER ITA NO. 940/JP/2011 DATED 31 /10/2011 AND THE MATTER WAS DECIDED IN ITS FAVOUR WITH THE FOLLOWING OBSERVATIONS: .ONCE THE ASSESSEE HAS FILED THE APPLICATION FOR APPROVAL THEN SUCH APPROVAL WILL RELATE TO THE DATE ON WHICH THE APPLI CATION FOR APPROVAL HAS BEEN FILED. UNDER THE SIMILAR CIRCUMSTANCES TH IS BENCH IN THE CASE OF RAJASTHAN RAJYA SAHAKARI SANGH LTD. IN ITA NO. 702/JP/09 DATED 16/07/2010 HAS HELD THE ALLOWABILITY OF PAYMENT OF GROUP GRATUITY SCHEME BECAUSE THE ASSESSEE HAS ALREADY FILED THE A PPLICATION FOR APPROVAL. ALTERNATIVELY THE ASSESSEE IS ENTITLED T O DEDUCTION IN RESPECT OF ACTUAL GRATUITY PAYMENT. HENCE WE HOLD THAT THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING DEDUCTION OF RS. 1.18 CRORES. THOUGH LD. CIT(A) HAS ALLOWED SUCH DEDUCTION U/S 37 YET WE HOLD THAT DEDUCTION IS ALLOWABLE U/S WITH SECTION 40A(9). IN CASE THE APP ROVAL OF GROUP GRATUITY SCHEME IS NOT GIVEN BY THE COMPETENT AUTHO RITY THEN THE REVENUE WILL BE ENTITLED TO TAKE REMEDIAL MEASURE A S PER LAW.. 4 M.A. NO. 116/JP/2017. JAIPUR THAR GRAMIN BANK JAIPUR. FROM THE ABOVE IT CAN BE INFERRED THAT THE CLAIM OF THE ASSESSEE WAS ALLOWED. SINCE WE HAVE ALLOWED THE CLAIM OF THE ASSESSEE HOWEVER IT IS CLARIFIED THAT IN VIEW OF THE JUDGMENT OF THE HONBLE SUPREME COURT RENDERED IN T HE CASE OF GOETZE (INDIA) LTD. VS. CIT (2006) 284 ITR 323 (SC). THE TRIBUNAL HAD ADMITTED THE CLAIM OF THE ASSESSEE AND DECIDED THAT THE GROUND RAISED IN ITA NO. 1040/JP/2016 IN THE TERMS INDICATED IN PARA 8 OR 9 OF THE ORDER SOUGHT TO BE RECTIFIED. THEREFORE THE PRESENT APPLICATION IS DISPOSED OF I N THE TERMS INDICATED HEREIN ABOVE. 5. IN THE RESULT THIS MISCELLANEOUS APPLICATION OF THE ASSESSEE IS PARTLY ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON TUESDAY THE 28TH DAY OF NOVEMBER 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 28/11/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- JAIPUR THAR GRAMIN BANK KISHAN JAIPUR. 2. THE RESPONDENT DCIT CIRCLE-2 JAIPUR. 3. THE CIT(A). 4. THE CIT 5. THE DR ITAT JAIPUR 6. GUARD FILE (M.A NO. 116/JP/2017) VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASSISTANT. REGISTRAR