THE BARMER CENTRAL COOPERATIVE BANK LTD. vs. A.C.I.T. CIRCLE BARMER

ITA/225/2013HC RajasthanRJHC01033907201324 August 20163 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the Income Tax Appellate Tribunal (ITAT) erred in remanding the assessment without considering the approval to the appellant-Bank's gratuity fund, which was effective from 1-4-2010 and was on record. The Court found that the ITAT should have taken this approval into consideration while adjudicating the appeal. Consequently, the High Court allowed the appeal, setting aside the impugned ITAT judgment to the extent it remanded the matter. The issue was remanded back to the ITAT for re-adjudication on merits, with a specific direction to consider the approval to the gratuity fund granted w.e.f. 1-4-2010. No other issues were expressly left undecided.

What were the facts?

The appellant, The Barmer Central Cooperative Bank Ltd., filed an appeal before the High Court of Rajasthan at Jodhpur challenging an order dated 15.7.2013 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The respondent was the Assistant Commissioner of Income Tax, Circle-Barmer. The core of the dispute revolved around the ITAT's decision to remand the assessment to the Assessing Authority. The appellant contended that approval for its gratuity fund, effective from 1-4-2010, was already on record and should have been considered by the ITAT. The High Court noted that this approval was indeed part of the record before the ITAT but was not taken into consideration.

What were the issues?

1. Whether the Income Tax Appellate Tribunal, Jodhpur Bench, is right in remanding the assessment to the Assessing Authority despite the fact that approval to the gratuity fund of the appellant-Bank w.e.f. 1-4-2010 was already on record? (Question of law and fact, concerning the assessment proceedings and the consideration of documentary evidence). Assessee's Contention: The ITAT erred in remanding the assessment without considering the already approved gratuity fund of the appellant-Bank, which was effective from 1-4-2010 and was on record. Revenue's Contention: The judgment does not record any specific contentions made by the revenue regarding this issue.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[1] IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR -------------------------------------------------------------- D.B. INCOME TAX APPEAL NO.225/2013 APPELLANT : The Barmer Central Cooperative Bank Ltd., through its Managing Director, Shri K.K. Gupta, Mahaveer Nagar, Barmer (Raj.) Versus RESPONDENT : The Assistant Commissioner of Income Tax, Circle- Barmer, District Barmer (Raj.) DATE OF JUDGMENT : 24.08.2016 HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE GOVIND MATHUR Mr. Anjay Kothari, for the appellant Mr. Sunil Bhandari, for the respondents

JUDGMENT ------------ BY THE COURT : This appeal is preferred to question correctness of the order dated 15.7.2013 passed by Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur. On 11.8.2016 this Court framed a substantial question of law in the terms that :

[2] “Whether the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur is right in remanding the assessment to the Assessing Authority despite the fact that approval to gratuity fund of the appellant-Bank w.e.f. 1-4-2010 was already on record ?. From perusal of record it is apparent that the approved gratuity fund was on record of the Income Tax Appellate Tribunal but that has not been taken into consideration. The Tribunal while adjudicating the appeal should have considered approval to gratuity fund of the appellant-Bank w.e.f. 1-4-2010. Looking to this fact, we deem it appropriate to allow this appeal by setting aside the judgment impugned dated 15.7.2013 to the extent referred above and the matter is remanded to the Income Tax Appellate Tribunal for re-adjudication of the issue concerned afresh on merits by taking into consideration the approval to gratuity fund to the appellant-Bank which was granted w.e.f. 1-4-2010. [GOVIND MATHUR],J. [K.S. JHAVERI], J.

[3] Sanjay

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