ACIT,CIRCLE-3, NAINITAL vs. THE NAINITAL BANK LTD, NAINITAL

The present appeal has been filed by the revenue against the order of ld. CIT (A), Haldwani dated 16.05.2017.

During the hearing, the assessee has made investment of Rs.706,65,02,000/- in various securities/shares and Rs.82,10,60,336/- in mutual funds & other tax free bonds. The assessee has made disallowance of Rs.42,19,826/- u/s 14A of the Income Tax Act, 1961 being expenses relatable to the income not includible in the total income as per the computation of total income. The AO made further disallowance of Rs.4,14,60,879/-.

The ld. CIT (A) deleted the addition based on the decision of the Tribunal in the assessee’s own case for the assessment years 2003-04, 2004-05 and 2005-06 in & 4987/Del/2007 and in ITA No. 260/Del/2007. Further, in ITA No. 3510/Del/2008 for the assessment year 2005-06, the Co- ordinate Bench of the Tribunal after going through the financial position of the assessee gave a categorical finding that the assessee has got sufficient own funds in the form of share capital, Reserves & Surplus. The financial position has not been disputed by the revenue authorities during the instant year.

Hence, in the absence of any change in the factual and legal position of the assessee, we affirm the decision of the ld. CIT (A) which was based on the considered pronouncement of the Co-ordinate Bench of ITAT.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 13/07/2021.