RAMANATHANPURAM CENTRAL CO-OP. BANK LTD.,RAMANATHAPURAM vs. ITO, WARD-1,, RAMNAD
आयकर अपील य अ
धकरण, ‘ए’ यायपीठ, चेनई
IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH, CHENNAI
ी एबी ट वक, यायक सद य एवं ी एस. आर. रघुनाथा, लेखा सद य के सम$
BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No.:1417/Chny/2025
नधा%रण वष% / Assessment Year: 2017-18
Ramanathapuram District Central
Cooperative Bank Limited,
Post Box No.25, 265-E,
Vandikkara Street,
Ramanathapuram – 623 501. vs.
ITO,
Ward -1,
Ramnad.
[PAN:AAIFR-2500-A ]
(अपीलाथ'/Appellant)
(()यथ'/Respondent)
अपीलाथ' क* ओर से/Appellant by : Shri. R. Prasanna Venkatesan, C.A.
()यथ' क* ओर से/Respondent by : Ms. E. Pavuna Sundari, C.I.T.
सुनवाई क* तार ख/Date of Hearing
:
06.08.2025
घोषणा क* तार ख/Date of Pronouncement
: 09.10.2025
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM:
The present appeal is filed by the assessee against the order dated 25.03.2025
passed by the Commissioner of Income Tax (Appeals) (hereinafter referred to as “CIT(A)”), dismissing the appeal filed by the assessee against the assessment order dated 28.12.2019 passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y.2017-18. 2. The assessee is a District Level Co-operative bank formed under Tamil Nadu
Co-operative Societies Act. It is under the control of Rules and Regulations Governed
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ITA. No.:1417//Chny/2025
by RBI. The main activity of the bank is to accept the deposits and lend money to the borrowers and also invest in various deposits and securities as allowed by the Co- operative Societies Act and RBI. The return of income for the year under consideration i.e. for A.Y.2017-2018 has been filed on 31.10.2017 declaring total income at Rs. NIL.
The said return was taken up for scrutiny by CASS and notice u/s.143(2) of the Act was issued on 28.09.2018. 3. While passing the assessment order, various additions were made, against which, the assessee preferred appeal against a few additions, which further came to be disallowed by the first appellate authority, against which the assessee is in appeal before us. The details are tabulated as below.
Sl.
No Particulars
Amount in Rs.
Allowed/
disallowed by the Assessing officer
Allowed/
disallowed by the CIT
(appeals)
Whether appeal is preferred at ITAT
1
Provision for Corpus
Fund
4,00,00,000
Disallowed
Disallowed
No 2
Disallowance of Interest Expenses
3,67,48,180
Disallowed
Disallowed
Yes
3
Disallowance of Interest expenses for non-deduction of TDS
6,39,11,973
Disallowed
Disallowed
No 4
Contingent composite Expenses
1,20,22,260
Disallowed
Disallowed
Yes
5
Disallowance of Reserve for jewel loan
78,71,135
Disallowed
Disallowed
No 6
Disallowance of Reserve for Government waiver
2,25,00,000
Disallowed
Disallowed
Yes
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ITA. No.:1417//Chny/2025
7
Deduction under section 36(1) (vii a)
20,52,17,357
Disallowed
Disallowed
Yes
With respect to the additions that are contested before us, i.e., “Disallowance of Interest Expenses”, “Contingent Composite Expenses”, “Disallowance of Reserve for Government Waiver” and “Deduction u/s.36(1)(viia) of the Act”, the Ld.AR of the assessee filed written submissions along with the paper book in support of its case and prayed that the appeal may be allowed in its favour. 5. Per contra, the Ld.DR submitted that the order of the authorities below needs no interference of the Tribunal and prayed that the appeal may be dismissed. 6. We have heard the rival contentions perused the material available on record and gone through the orders of the authorities along with the paper book filed by the ld.AR. On perusal of the documents filed by the Ld.AR and the submissions made before us, we find that the expenditures disallowed needs to be verified by the Assessing Officer with the corresponding records and documents filed by the assessee. Therefore, we are of the view that the assessee could be given one more opportunity before the Assessing Officer to substantiate its case, in the light of the supporting evidence filed by it. Hence, we direct the Assessing Officer to decide the issues concerning “Disallowance of Interest Expenses”, “Contingent Composite Expenses”, “Disallowance of Reserve for Government Waiver” and “Deduction u/s.36(1)(viia) of the Act” after considering the relevant submissions made by the assessee. The assessee is directed to be diligent in appearing before the Assessing Officer as and when called for and entitled to file the required relevant documents and records before the Assessing Officer, in support of its claim.
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ITA. No.:1417//Chny/2025
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 09th October, 2025 at Chennai. (एबी ट वक )
(ABY T VARKEY)
यायक सद य/Judicial Member
(एस. आर. रघुनाथा)
(S. R. RAGHUNATHA)
लेखासद य/Accountant Member
चेनई/Chennai,
.दनांक/Dated, the 09th October, 2025
sp
आदेश क* (त0ल1प अ2े1षत/Copy to:
1. अपीलाथ'/Appellant
2. ()यथ'/Respondent
3.आयकर आयु3त/CIT– Chennai/Coimbatore/Madurai/Salem
4. 1वभागीय (तन
ध/DR
5. गाड% फाईल/GF