THE DCIT, CIRCLE-6,, AHMEDABAD vs. THE NARODA NAGRIK CO.OP. BANK LTD.,, AHMEDABAD

This appeal by the Revenue is directed against the order of the Ld. CIT(A)-3, Ahmedabad dated 13.02.2015 pertaining to A.Y. 2009-10.

The roots for the levy of penalty lie in the assessment order dated 26.12.2011 framed u/s.143(3) of the Act.

During the course of the scrutiny assessment proceedings, the A.O. noticed that the assessee has claimed a loss of Rs. 37,08,022/- by making provision on the basis of Accounting Standard in respect of Central Government Securities under investment vis-à-vis current assets.

The disallowance of the claim of provision travelled up the Tribunal and the Tribunal in ITA No. 2358/Ahd/2012 vide order dated 16.05.2017 held that the loss claimed by the assessee bank is revenue in character and an allowable business loss.

“Sublato Fundamento Cadit Opus” meaning thereby when the foundation is removed, the super structural must fall.

Appeal filed by the Revenue is accordingly dismissed.