COMMI. OF IT-II, JALANDHAR vs. M/S KAPURTHALA FIROZEPUR KSHETRIYA GRAMIN BANK

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ITA/25/2011HC Punjab & HaryanaPHHC01095576201104 April 2011Bench: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE AJAY KUMAR MITTAL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeals filed by the revenue. The court noted that the revenue's counsel fairly stated that the issue involved in these appeals was already covered against the revenue by the High Court's own order dated February 2, 2010, in ITA No. 594 of 2009, titled CIT v. M/s Shivalik Kshetriya Gramin Bank. Consequently, following the precedent set by the earlier judgment, the present appeals were dismissed. The ratio decidendi is that if a legal issue concerning the same section of the Income Tax Act and similar facts has been decided by the High Court, subsequent appeals on the same issue will be dismissed based on that precedent. No specific findings were made on the merits of the individual questions as the appeals were disposed of on the basis of the prior ruling.

What were the facts?

The Revenue, through the Commissioner of Income Tax, filed four appeals (ITA Nos. 25, 26, 28, and 29 of 2011) against the order of the Income Tax Appellate Tribunal, Amritsar, dated August 10, 2010. These appeals pertained to the assessment year 2006-07 and challenged the Tribunal's decision regarding the assessee bank's claim for deduction under Section 80P of the Income Tax Act, 1961. Specifically, the dispute involved income earned from the utilization of the bank's reserve funds, both statutory and voluntary. The appeals were filed under Section 260-A of the Act.

What were the issues?

The Tribunal was asked to decide the following substantial questions of law: 1. Whether the Tribunal was correct in law in disallowing the assessee bank's claim for deduction under Section 80P(2)(a)(i) in respect of income earned from the utilization of its statutory reserve funds, specifically those under Section 67(2) of the Gujarat Co-operative Societies Act, 1961. 2. Whether the assessee bank is entitled to claim deduction under Section 80P(2)(a)(i) in respect of income earned from the utilization of its voluntary reserves, excluding the aforementioned statutory reserves. The revenue argued that the Tribunal was incorrect in allowing the deduction for income from statutory reserves. The judgment does not record any specific arguments made by the assessee. However, the revenue's counsel conceded that the matter was covered against the revenue by a previous order of the High Court.

Which sections of the Income-tax Act were involved?

Section 80P,Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No.25 of 2011 Date of decision: 4.4.2011 The Commissioner of Income Tax -----Appellant. Vs. M/s Kapurthala Ferozepur Kshetriya Gramin Bank. -----Respondent and connected appeals being ITA Nos.26, 28 and 29 of 2011 CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Vivek Sethi, Standing Counsel for the appellant. --- ADARSH KUMAR GOEL, J.

This order will dispose of I.T.A. Nos.25, 26, 28 and 29 of 2011 as all the four appeals involve same questions. I.T.A. No.25 of 2011 has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of the Income Tax Appellate Tribunal, Amritsar dated 10.8.2010 in ITA No.309(ASR)/2010 for the assessment year 2006-07 claiming following substantial questions of law:- “(1) Whether the Tribunal was right in law in disallowing the claim of the assessee bank for deduction u/s 80P

I.T.A. No.25 of 2011 (2)(a)(i) in respect of income earned from utilization of its reserve funds being statutory reserves u/s 67(2) of the Gujarat Co-operative Societies Act 1961? (2) Whether the assessee bank is entitled to claim deduction under section 80P(2)(a)(i) in respect of income earned from utilization of its voluntary reserves other than the statutory reserves mentioned above?” Learned counsel for the revenue fairly states that the matter is covered against the revenue by order of this Court dated 2.2.2010 in I.T.A. No.594 of 2009 in CIT v. M/s Shivalik Kshetriya Gramin Bank. Accordingly, these appeals are dismissed.

A photocopy of this order be placed on the file of each connected case. (ADARSH KUMAR GOEL) JUDGE April 04, 2011 ( AJAY KUMAR MITTAL ) ashwani JUDGE 2

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