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Income Tax Appellate Tribunal - Ahmedabad

The Dcit, Circle-6,, Ahmedabad vs The Naroda Nagrik Co.Op. Bank Ltd.,, ... on 15 January, 2018

       IN THE INCOME TAX APPELLATE TRIBUNAL
                    AHMEDABAD "D" BENCH

(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
      & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER)

                         ITA. No: 1226/AHD/2015
                        (Assessment Year: 2009-10)


     Deputy Commissioner of V/S The Naroda Nagrik Co.Op.
     Income      Tax, Circle-   Bank     Ltdl,     A-1-2,
     3(3),Ahmedabad             Dharamsut        Society,
                                Gurukul Memnagar Road,
                                Memnagar, Ahmedabad
     (Appellant)                 (Respondent)


                           PAN: AAAAT9803D


       Appellant by        : Shri V.K. Singh, Sr. D.R.
       Respondent by       : Shri Hem Chhajed, A.R.

                                (आदे श)/ORDER

Date of hearing              : 11 -01-2018
Date of Pronouncement        : 15 -01-2018

PER N.K. BILLAIYA, ACCOUNTANT MEMBER

1. This appeal by the Revenue is directed against the order of the Ld. CIT(A)-3, Ahmedabad dated 13.02.2015 pertaining to A.Y. 2009-10.

2 ITA No. 1226/Ahd/2015

. A.Y. 2009-10

2. The only grievance of the revenue is that the ld. CIT(A) erred in deleting the penalty levied u/s. 271(1)(c) of the act amounting to Rs. 12,60,357/-.

3. The roots for the levy of penalty lie in the assessment order dated 26.12.2011 framed u/s.143(3) of the Act.

4. During the course of the scrutiny assessment proceedings, the A.O. noticed that the assessee has claimed a loss of Rs. 37,08,022/- by making provision on the basis of Accounting Standard in respect of Central Government Securities under investment vis-à-vis current assets.

5. The disallowance of the claim of provision travelled up the Tribunal and the Tribunal in ITA No. 2358/Ahd/2012 vide order dated 16.05.2017 held that the loss claimed by the assessee bank is revenue in character and an allowable business loss.

6. "Sublato Fundamento Cadit Opus" meaning thereby when the foundation is removed, the super structural must fall.

7. Appeal filed by the Revenue is accordingly dismissed.



             Order pronounced in Open Court on           15 - 01- 2018


               Sd/-                                                      Sd/-
 (MAHAVIR PRASAD)                                           (N. K. BILLAIYA)
 JUDICIAL MEMBER         True Copy                        ACCOUNTANT MEMBER
Ahmedabad: Dated 15/01/2018
Rajesh