AHMEDNAGAR SHAHAR SAHAKARI BANK LTD,AHMEDNAGAR vs. ASSISTANT COMMISSIONER OF INCOME-TAX, AHMEDNAGAR CIRCLE, AHMEDNAGAR

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)- 2, Pune [‘CIT(A)’ for short] dated 24.10.2017 for the assessment year 2013-14.

Briefly, the facts of the case are that the appellant is a cooperative bank engaged in banking business. The return of income for the assessment year 2013-14 was filed on 02.10.2013 Rs.7,18,86,595/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Ahmednagar Circle, Ahmednagar (‘the Assessing Officer’) vide order dated 30.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at total income of Rs.10,83,41,170/-. While doing so, the Assessing Officer made disallowance of Rs.47,96,280/- on account of Broken Period Interest. The Assessing Officer also made addition of Rs.3,16,20,370/- under the provisions of section 14A of the Act, with which, we are concerned. 3. Being aggrieved by the above disallowances, an appeal was filed before the ld. CIT(A), who vide impugned order directed the Assessing Officer to delete the addition made on account of Broken Period Interest of Rs.47,96,280/-. The ld. CIT(A) also directed the Assessing Officer to delete the addition made u/s 14A r.w. Rule 8D(2)(ii) of the Income Tax Rules, 1962 (‘the Rules’), however, failed to deal with the disallowance made under clause (iii) of Rule 8D(2) of the Rules. 4. Being aggrieved by the above decision of the ld. CIT(A), the appellant is in appeal before us.