Income Tax Appellate Tribunal - Rajkot
Dy. Commr. Of Income Tax, Gandhidham ... vs Kutch District Central Co-Operative ... on 7 April, 2017
आयकर अपील य अ
धकरण, राजकोट यायपीठ, राजकोट ।
IN THE INCOME TAX APPELLATE TRIBUNAL
RAJKOT BENCH, RAJKOT
[ Conducted through E-Court at Ahmedabad ]
BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER And
SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
आयकर अपील सं./I.T.A. No.179/RJT/2015
( नधा रण वष / Assessment Year : 2010-11)
Dy.CIT बनाम/
M/s.Kutch District
Gandhidham Circle Vs. Central Co-operative
Gandhidham-Kutch Bank Ltd.
Vijay Nagar
Hospital Road
Bhuj-Kutch
थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. AAAAT 3210 E
(अपीलाथ /Appellant) .. ( यथ / Respondent)
अपीलाथ ओर से /Appellant by : Shri Praveen Verma, Sr.DR
यथ क! ओर से/Respondent by : Shri D.M. Rindani on behalf
of Shri Vimal Desai, AR
ु वाई क! तार ख /
सन Date of Hearing 05/04/2017
घोषणा क! तार ख /Date of Pronounce ment 07 / 04 /2017
आदे श / O R D E R
PER PRADIP KUMAR KEDIA, AM :
The captioned appeal by the Revenue is directed against the order of the Commissioner of Income Tax(Appeals)-3, Rajkot [CIT(A) in short] dated 11/02/2015 for the Assessment Year (AY) 2010-11.
ITA No.179 /RJT/2015Dy. CIT Vs. M/s.Kutch District Central Co-operative Bank Ltd.
Asst.Year - 2010-11 -2-
2. The grounds of appeal raised by the Revenue read as under:-
a) The CIT(A) has erred in deleting the addition made by AO on account of interest accrued on NPA despite the fact that section 43D of the I.T.Act does not apply in case of the assessee.
b) Without prejudice to the above, CIT(A) has erred in not applying the DBDT circular No.F.201/21/84/ITA-II, dated 09/10/1984 which requires "interest not received for less than last three years, to be considered as interest accrued and which was approved in the judgment of Hon'ble Supreme Court in case of UCO Bank Ltd vs. CIT 237 ITR 889.
3. The Ld.AR at the outset submitted that the solitary issue relates to taxability of interest on non-performing assets. The Ld.AR pointed out that the similar issue was involved in assessee's own case for the AYs 2007-08 to 2009-10 which has been decided by Co-ordinate Bench of the Tribunal in favour of assessee in ITA No.298/Rjt/2014 & Ors., order dated 28/04/2016.
4. We have perused the orders of the authorities below and the decision of the Tribunal in assessee's own case relevant to AYs 2007-08 to 2009-10 as pointed out on behalf of the assessee. The relevant operative para of the order of the ITAT-Rajkot in assessee's own case relevant to AYs 2007-08 to 2009-10 as noted above reads as under:-
ITA No.179 /RJT/2015Dy. CIT Vs. M/s.Kutch District Central Co-operative Bank Ltd.
Asst.Year - 2010-11 -3- "8. We have heard the rival submissions and perused the material on record. The issue in the present case is with respect to provision of overdue interest on NPA accounts. It is an undisputed fact that assessee is a co-operative bank and is governed by the Reserve Bank of India guidelines. We find that ld.CIT(A) after considering the CBDT Circular, provisions of Act and various decisions cited in the order has held that A.O. was not justified in disallowing the claim of deduction on the issue of interest on overdue loans. We find that Hon'ble Bombay High Court in the case of CIT vs. Deogiri Nagar Sahakari Bank Ltd. & Ors. (2015) 379 ITR 24 (Bom.) has held that prudential norms issued by Reserve Bank of India are equally applicable to co-operative banks and that interest on sticky advances is not taxable. Before us, Revenue has not brought on record any contrary binding decision in its support. In view of the aforesaid facts, we find no reason to interfere with the order of ld.CIT(A). Thus, the ground of Revenue is dismissed."
5. In view of the identical facts, we decline to interfere with the order of the CIT(A) in parity with the decision of the ITAT in assessee's own case.
6. In the result, appeal of the Revenue is dismissed.
Order pronounced in the Court on 07/ 04/2017 at Ahmedabad.
Sd/- Sd/-
( MAHAVIR PRASAD) ( PRADIP KUMAR KEDIA )
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad ; Dated 07/04/2017
ट .सी.नायर, व.,न.स./T.C. NAIR, Sr. PS
ITA No.179 /RJT/2015
Dy. CIT Vs. M/s.Kutch District Central Co-operative Bank Ltd.
Asst.Year - 2010-11 -4- आदे श क त ल प अ े षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent.
3. संबं धत आयकर आयु.त / Concerned CIT
4. आयकर आयु.त(अपील) / The CIT(A)-3, Rajkot
5. 2वभागीय ,त,न ध, आयकर अपील य अ धकरण,राजोकट/DR,ITAT, Rajkot
6. गाड@ फाईल / Guard file.
आदे शानुसार/ BY ORDER, स या2पत ,त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील%य अ&धकरण, राजोकट / ITAT, Rajkot
1. Date of dictation .. 5.4.17 (dictation-pad 4-pages attached at the end of this File)
2. Date on which the typed draft is placed before the Dictating Member .. 6.4.17
3. Other Member...
4. Date on which the approved draft comes to the Sr.P.S./P.S.................
5. Date on which the fair order is placed before the Dictating Member for pronouncement......
6. Date on which the fair order comes back to the Sr.P.S./P.S....... 7.4.17
7. Date on which the file goes to the Bench Clerk..................... 7.4.17
8. Date on which the file goes to the Head Clerk..........................................
9. The date on which the file goes to the Assistant Registrar for signature on the order..........................
10. Date of Despatch of the Order..................