Income Tax Appellate Tribunal - Lucknow
M/S Jalaun District Co-Operative Bank ... vs Department Of Income Tax on 15 March, 2016
1
IN THE INCOME TAX APPELLATE TRIBUNAL
LUCKNOW BENCH "B", LUCKNOW
BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER
AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER
ITA No.594/LKW/2015
Assessment year:2010 - 11
D.C.I.T.-4, Vs M/s Jalaun District Co-Operative Bank Ltd.,
Kanpur. Station Road,
Orai, Dist.: Jalaun - 285001.
PAN:AAAAJ5602J
(Appellant) (Respondent)
Appellant by Shri Rajesh Kushwaha, C.A.
Respondent by Shri Amit Nigam, D. R.
Date of hearing 24/02/2016
Date of pronouncement 15/03/2016
ORDER
PER A. K. GARODIA, A.M.
This is revenue's appeal directed against the order passed by learned CIT(A) - II, Kanpur dated 28/05/2015 for the assessment year 2010-11.
2. In this appeal, the revenue has raised as raised 4 grounds but the revenue has only two grievances. First grievance of the revenue is about the deletion of the addition of Rs. 37,67,376/- made by the A.O. on account of introduction of fresh Share Capital.
Second grievance of the revenue is about the deletion of the addition of Rs. 120,26,549/- made by the A.O. u/s 41 (1) in respect of sundry liabilities.
3. Learned D. R. of the Revenue supported the assessment order. Learned A. R. of the assessee supported the order of CIT (A).
4. We have considered the rival submissions. We find that the first dispute was decided by CIT (A) by making following observation on page 4 of his order:-
2"I have considered the above submissions and the arguments placed by the AR of the assessee along with contents of the assessment order. The AR of the assessee has explained the process of share capital along with rules and regulations of cooperative society and rights and liabilities of the members. The primary cooperative society has purchased the shares of the assessee bank. The transactions are made in cheque and the respective primary cooperative societies are maintaining bank accounts with the assessee bank. Therefore, the transactions are explained and their genuineness is proved beyond doubt. Accordingly, the addition made by the AO is hereby deleted."
5. We find that a categorical finding is given by CIT (A) that the transactions are explained and their genuineness is proved beyond doubt. This finding of CIT (A) could not be controverted by the learned DR of the revenue. Hence, we find no reason to interfere in the order of learned CIT (A) on this issue in the facts of the present case.
6. In respect of the second dispute, We find that this dispute was decided by CIT (A) by making following observation on page 9 of his order:-
"I have considered the above submissions and the arguments placed by the AR of the assessee along with contents of the assessment order. The AR has explained above that sundry liabilities cannot be added u/s 41 (1) as the assessee has not written off any liability in the P/L account. Since the liabilities are not written off in the P/L account, thereby, the disallowance cannot be made. Such liabilities are mainly on account of unclaimed DDs, unclaimed pension, unclaimed scholarship, bankers cheques issued but not cleared or presented for payment, wrong mentioning of bank account number, unclaimed subsidy etc. These liabilities are appearing in the balance sheet which is yet to be paid as and when claimed. Therefore, the addition made by the AO is not correct. Therefore, the addition made by the AO is not correct. Hence, the addition is hereby deleted."3
7. We find that a categorical finding is given by CIT (A) that the liabilities have not ceased to exist. This finding of CIT (A) could not be controverted by the learned DR of the revenue. Hence, we find no reason to interfere in the order of learned CIT (A) on this issue also in the facts of the present case.
8. In the result, the appeal of the Revenue stands dismissed.
(Order was pronounced in the open court on the date mentioned on the caption page) Sd/. Sd/.
(SUNIL KUMAR YADAV) ( A. K. GARODIA )
Judicial Member Accountant Member
Dated:15th March, 2016
*Singh
Copy of the order forwarded to :
1.The Appellant
2.The Respondent.
3.Concerned CIT
4.The CIT(A)
5.D.R., I.T.A.T., Lucknow Asstt. Registrar