THE PARBHANI DISTRICT CENTRAL CO-OPERATIVE BANK LTD., PARBHANI THR ITS INCHARGE MANAGER VENKATESH vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, AURANGABAD AND ANR

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ITA/99/2016HC BombayHCBM03028451201601 February 2018Author: HON'BLE SHRI JUSTICE S V GANGAPURWALA,HON'BLE SHRI JUSTICE ARUN M. DHAVALE3 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the issue is squarely covered by the judgment of the Apex Court in Commissioner of Income Tax Vs. M/s. Sun Engineering Works (P.) Ltd. (Supra). The Apex Court had held that proceedings under Section 147 of the Income Tax Act, 1961, cannot be allowed to be converted into a revision or review. Since a notice under Section 148 was issued in the present case, and the assessee had conceded to this position before the Tribunal, no substantial question of law arises. Therefore, the appeal was dismissed. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The appellant, The Parbhani District Central Cooperative Bank Ltd., filed a revised return for Assessment Year 2007-2008, claiming a deduction for bad debts under Section 36 of the Income Tax Act, 1961. The Assessing Officer rejected this claim. The appellant argued that they had already paid tax and should not be taxed twice, and that this aspect was not considered. The Revenue supported the impugned order, stating the issue was covered by a Supreme Court judgment. The facts of the case were undisputed, and a notice under Section 148 was issued to the appellant.

What were the issues?

1. Whether the appellant is entitled to a deduction for bad debts under Section 36 of the Income Tax Act, 1961, when they had already paid tax on the income? - Assessee's contention: The appellant argued that having already paid tax, they should not be taxed again, and this aspect was overlooked. They also claimed that the benefit of recompilation of income should be available. - Revenue's contention: The Revenue contended that the issue is squarely covered by the Supreme Court's judgment in Commissioner of Income Tax Vs. M/s. Sun Engineering Works (P.) Ltd. (1992) 198 ITR 297, and that proceedings under Section 147 cannot be converted into a revision or review.

Which sections of the Income-tax Act were involved?

Section 36,Section 147,Section 148

AI-generated summary — verify with the full judgment below

1 ita 99.16 IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD INCOME TAX APPEAL NO. 99 OF 2016 The Parbhani District Central Co­operative Bank Ltd., Through its Incharge Manager ..    Appellant Versus The Assistant Commissioner of Income Tax and another ..  Respondents Shri   R.   N.   Dhorde,   Senior   Advocate   i/b.   Shri   V.   R.   Dhorde, Advocate for the Appellant. Shri Alok M Sharma, Advocate for Respondents. CORAM  : S. V. GANGAPURWALA & A. M. DHAVALE, JJ. DATE : 1  st   February, 2018 PER COURT :

1.

Mr.   Dhorde,   learned   Senior   Advocate   for   the   appellant submits that the appellant had filed a revised return for the assessment year 2007­2008, claiming deduction under Section 36 of The Income Tax Act, 1961 of the bad debts.  The case of the appellant was turned down on the ground that the benefit of recompilation of income is not available  to assessee.  According to the learned Senior Advocate, the appellant had already paid

2 ita 99.16 the tax, as such, could not have been taxed twice.  This aspect has not been considered.

2.

Mr. Sharma, learned advocate for the respondents supports the Judgment and states that the issue is squarely covered by the Judgment of the Apex Court in a case of Commissioner of Income   Tax   Vs.   M/s.   Sun   Engineering   Works   (P.)   Ltd. (1992) 198 ITR 297. 3. The facts of this case are undisputed.  The appellant had filed revised return for the assessment year 2007­2008. 4. It   has   been   held   by   the   Apex   Court   in   a   case   of Commissioner   of   Income   Tax   Vs.   M/s.   Sun   Engineering Works (P.) Ltd. (Supra) that proceedings under Section 147 of the Income Tax Act, 1961 cannot be allowed to to be converted in “Revision or Review”.  The notice is issued to the appellant under Section 148 also in the present case.

5.

Even the assessee had conceded to this position before the Tribunal.

3 ita 99.16

6.

Considering that the dispute is squarely covered by the Judgment of the Apex  Court in a case  of  Commissioner of Income Tax Vs. M/s. Sun Engineering Works (P.) Ltd.  No substantial question of law arises.

7.

The appeal is dismissed.  No costs. [A. M. DHAVALE, J.] [S. V. GANGAPURWALA, J.] marathe/Jan.18

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