WAIGANGA KRISHNA GRAMIN BANK,NAGPUR vs. ASSISTANT COMMISSIONER OF INCOME-TAX,

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ITA 1845/PUN/2016Status: DisposedITAT Pune13 December 2019AY 2010-115 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 admitted an additional ground of appeal concerning the eligibility for deduction under Section 80P(2)(a)(i). Since this claim was not examined by the AO, the Tribunal set aside the impugned order and restored the matter to the AO for examination.

What were the facts?

The assessee, a Regional Rural Bank, filed a return declaring Nil income. The assessment was initially completed at Nil income, but an order under Section 154 later determined the total income at Rs. 4,48,96,295/-. The assessee appealed this order.

What were the issues?

Whether a Regional Rural Bank is entitled to deduction under Section 80P(2)(a)(i) and if this claim should be examined by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(3),Section 80P(2)(a)(i)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri C. Naresh
For Respondent: Shri Ajay Dhoke

PER R.S.SYAL, VP :

This appeal by the assessee is directed against the order passed by the CIT(A)-7, Pune on 01-04-2016 in relation to the assessment year 2010-11.

2.

The appeal is time barred by 22 days. The assessee has filed a petition for condonation of delay accompanied by the affidavit giving reasons for the delay in presentation of the appeal before the

2 ITA No.1845/PUN/2016 Vidharbha Konkan Gramin Bank

Tribunal. We are satisfied with such reasons and accordingly admit

the appeal for hearing.

3.

Briefly stated, the facts of the case are that the assessee filed

its return declaring Nil income. The assessment was completed

u/s.143(3) of the Income-tax Act, 1961 (hereinafter called `the Act’)

at Nil income. Thereafter, an order u/s.154 came to be passed by

the AO determining total income at Rs.4,48,96,295/-. The assessee

filed appeal against the order u/s.154 of the Act but remained

unsuccessful before the ld. CIT(A). This is how, the assessee has

come up in appeal before the Tribunal.

4.

The assessee has raised an additional ground, which reads as

under :

“The Appellant being a Regional Rural Bank and being deemed to be a cooperative society for the purpose of Income- tax Act as per section 22 of Regional Rural Bank Act and the overriding provision as per section 32 of Rural Bank Act, is entitled to benefit of deduction u/s.80P(2)(a)(i) of the Income- tax Act as held by Hon’ble ITAT Allahabad in the case of Baroda Uttar Pradesh Gramin Bank (ITA 403 to 405/Alld/2014 and accordingly deduction under the said section should be allowed in computing the total income.”

5.

Since this ground involves a pure question of law and does not

require any fresh adjudication on facts, we, therefore, admit the

3 ITA No.1845/PUN/2016 Vidharbha Konkan Gramin Bank

same in the hue of the judgment of Hon’ble Supreme Court in

National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383

(SC).

6.

Through the additional ground, the assessee is urging that it

being a Regional Rural bank is entitled to deduction u/s.80P(2)(a)(i)

of the Act, which was neither claimed in the return nor allowed in

the assessment. It was thus requested that the benefit of the same

should be conferred on the assessee. The ld AR contended that if

the benefit of deduction u/s.80P is given, then most of the issues in

the appeal would become academic.

7.

We have heard the rival submissions and gone through the

relevant material on record. It is seen that the additional ground has

been raised before the Tribunal for the first time claiming the

benefit of section u/s.80P of the Act on the ground of its eligibility.

Since the eligibility of the assessee for the benefit u/s.80P of the Act

has not been examined by the AO, in our considered opinion, the

ends of justice would meet adequately if the impugned order is set-

aside and the matter is restored to the file of AO. We order

accordingly and direct him to examine the claim of the assessee for

4 ITA No.1845/PUN/2016 Vidharbha Konkan Gramin Bank

entitlement to deduction u/s.80P(2) of the Act as per law after

allowing a reasonable opportunity of hearing to the assessee.

8.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in the Open Court on 13th December, 2019.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 13th December, 2019 सतीश आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. 3. The CIT(A)-7, Pune 4. The CIT-6, Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “बी” / DR ‘B’, ITAT, Pune; 6. गाड� फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA No.1845/PUN/2016 Vidharbha Konkan Gramin Bank

Date 1. Draft dictated on 12-12-2019 Sr.PS 2. Draft placed before author 12-12-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.

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