CO. OP. BANK OF MEHSANA LTD.,MEHSANA vs. THE DEPUTY COMMISSIONER OF INCOME TAX, MEHSANA CIRCLE, MEHSANA

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ITA 1261/AHD/2017Status: DisposedITAT Ahmedabad31 January 2019AY 2014-152 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The tribunal held that locker rent derived by the assessee is income from the business of banking. Levying locker rent on a notional basis was not found to have merit.

What were the facts?

The assessee, a cooperative bank, appealed against the addition of Rs. 1,31,150/- as locker rent from depositors, which was confirmed by the CIT(A). The assessment was made under section 143(3) of the Income Tax Act.

What were the issues?

Whether locker rent derived by a cooperative bank is to be treated as income from business, and if notional levy of locker rent is permissible.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Shri Mahavir Prasad & Shri Amarjit Singh

For Appellant: Shri Mehul Talera, A.R
For Respondent: Shri Mudit Nagpal, Sr. D.R, Shri Mehul Talera, A.R

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member ITA No. 1261/Ahd/2017 Assessment Year 2014-15

Co-op. Bank of Mehsana The DCIT, Ltd. 1st Floor, Mehsana Mehsana Circle Dist. Bank Building, Vs Apollo Enclave Rajmahel Road, Mehsana Rajmahel Road, PAN: AAAJT0160A Mehsana (Appellant) (Respondent)

Revenue by: Shri Mudit Nagpal, Sr. D.R. Assessee by: Shri Mehul Talera, A.R. Date of hearing : 11-01-2019 Date of pronouncement : 31-01-2019 आदेश/ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:-

This assessee’s appeal for A.Y. 2014-15, arises from order of the CIT(A), Gandhinagar, Ahmedabad dated 20-04-2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.

2.

The solitary ground of appeal of the assessee is against the decision of ld. CIT(A) in confirming the addition to the extent of Rs. 1,31,150/- as locker rent from the depositors.

I.T.A No. 1261/Ahd/2017 A.Y. 2014-15 Page No 3 Co-op. Bank of Mehsana Ltd. vs. DCIT

Mehsana District Central Co-operative Bank Ltd. vs. ITO (2001) 119 Taxman 785 (SC) wherein it is held that locker rent derived by assessee was income from business of banking. In the light of the aforesaid fact and findings, we do not find any merit in levying locker rent on notional basis therefore, we are not inclined with the decision of the Ld. CIT(A). Accordingly, the appeal of the assessee is allowed.

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 31-01-2019

Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 31/01/2019 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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