ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE- 1(1), DAVANAGERE vs. M/S. D C C CO-OPERATIVE BANK LIMITED, DAVANAGERE

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ITA 1405/BANG/2019Status: DisposedITAT Bangalore29 May 2020AY 2014-153 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's appeal for AY 2014-15 due to low tax effect. For AYs 2011-12 and 2013-14, the Tribunal upheld the CIT(A)'s deletion of additions made on account of interest accrued on non-performing assets.

What were the facts?

The Revenue filed three appeals against the orders of the CIT(A) for AYs 2011-12, 2013-14, and 2014-15. One appeal (AY 2014-15) was dismissed due to low tax effect, as the addition was below Rs. 50 lakhs.

What were the issues?

The primary issues were the maintainability of an appeal due to low tax effect and the correctness of deleting additions related to interest on non-performing assets.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI A. K. GARODIA & SHRI PAVAN KUMAR GADALE

For Appellant: Shri. V. Srinivasan, Advocate
For Respondent: Ms. Neera Malhotra, CIT (DR)(ITAT), Bengaluru, Shri. V. Srinivasan, Advocate
Hearing: 04.03.2020Pronounced: 29.05.2020

Per A.K. Garodia, Accountant Member These three appeals are filed by the Revenue and these are directed against three separate orders of learned CIT(A), Davangere all dated 28.04.2014 for the Assessment Years 2011-12, 2013-14 and 2014-15. All these three appeals were heard together and are being disposed of by way of this common order for the sake of convenience.

2.

At the very outset, it was submitted by learned AR of the assessee that one appeal for Assessment Year 2014-15 in is to 1405/Bang/2019 Page 2 of 3 having tax effect below 50 lakhs and therefore, this appeal of the Revenue is not maintainable in view of the low tax effect as per the CBDT’s recent instructions. Accordingly, this appeal of the Revenue is dismissed because of low tax effect because we find that in this year, the addition of only of Rs.78,15,063/- was made by the AO and therefore, tax effect is definitely below Rs.50 lakhs.

3.

In the result, appeal of the Revenue for Assessment Year 2014-15 is dismissed.

4.

Now, we take up the appeal of the Revenue for Assessment Years 2011-12 and 2013-14. In respect of these two appeals, learned DR of the Revenue supported the respective Assessment Order whereas learned AR of the assessee supported the respective order of the CIT(A).

5.

We have considered the rival submissions. We find that in both these years, the only issue involved is regarding the addition made by the AO on account of interest accrued on non-performing assets (NPA) which was deleted by CIT(A). This addition was deleted by learned CIT(A) by following the judgment of Hon’ble Apex Court rendered in the case of UCO Bank Vs. CIT 237 ITR 889 (1999) and of Hon’ble Karnataka High Court rendered in the case of CIT Vs. Canfin Homes Ltd., 347 ITR 0382. It could not be shown by learned DR of the Revenue as to how these judgments are not applicable in the present case and since, the order of CIT(A) is by following these two binding judgments of Hon’ble Apex Court and of Hon’ble Karnataka High Court, we decline to interfere in the order of CIT(A) in both these years. to 1405/Bang/2019 Page 3 of 3 6. In the result, all the three appeals of the Revenue are dismissed.

Pronounced in the open court on the date mentioned on the caption page.

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