Gujarat High Court
Principal Commissioner Of Income Tax vs Gozaria Nagarik Sahkari Bank ... on 19 September, 2017
Author: Akil Kureshi
Bench: Akil Kureshi, Biren Vaishnav
O/TAXAP/712/2017 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL NO. 712 of 2017
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PRINCIPAL COMMISSIONER OF INCOME TAX
GANDHINAGAR....Appellant(s)
Versus
GOZARIA NAGARIK SAHKARI BANK LTD.....Opponent(s)
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Appearance:
MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MR.JUSTICE BIREN VAISHNAV
Date : 19/09/2017
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Revenue is in appeal against the judgment and order passed by the Income Tax Appellate Tribunal dated 19.10.2016 raising following question for our consideration:
"Whether, the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs.96,23,606/ made on account of disallowance of claim of deduction u/s.36(1) (viia) of the the Income Tax Act, 1961?"
2. The issue pertains to addition of Rs.96.23 lakhs (rounded off) made by the Assessing Officer by disallowing the claim of assessee for deduction under Page 1 of 2 HC-NIC Page 1 of 2 Created On Sun Sep 24 13:58:43 IST 2017 O/TAXAP/712/2017 ORDER section 36(1)(viia) of the the Income Tax Act, 1961. The Tribunal while confirming the view of the Commissioner of Income Tax (Appeals), came to the conclusion that the assessee had fulfilled all requirements of the said section. Significantly and undisputedly, the assessee had created the provision of Rs.1.42 crores (rounded off) to the debit of reserve fund. Under the circumstances, the Tribunal was of the opinion that the mere fact that the same is termed as transfer to reserve does not alter the very essence.
3. Such being facts, no question of law arises. Tax Appeal is dismissed.
(AKIL KURESHI, J.) (BIREN VAISHNAV, J.) ANKIT Page 2 of 2 HC-NIC Page 2 of 2 Created On Sun Sep 24 13:58:43 IST 2017