THE BASSEIN CATHOLIC CO OP BANK LTD,VASAI vs. ASST CIT CIR 4, THANE

The assessee has filed the present appeal against the order dated 23.01.2018 passed by the Commissioner of Income Tax (Appeals) -3, Mumbai [hereinafter referred to as the “CIT(A)”] relevant to the A.Y.2010- 11.

The assessee has raised the following grounds: -

The brief facts of the case are that the assessee filed its return of income for the A.Y. 2010-11 on 14.10.2010 declaring total income to the tune of Rs.53,28,30,976/-. Thereafter, the assessee filed revised return of income on 05.03.2012 declaring total income at Rs.42,67,36,813/-. In the revised return of income, the assessee bank has claimed deduction u/s 36(1)(viia)(a) of the Act amounting to Rs.10,59,84,000/- and expenses of Rs.1,99,096/- on account of return of DDR Market. Thereafter, the case was selected for scrutiny and notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. The claim of the assessee u/s 36(1)(viia)(a) of the Act amounting to Rs.10,59,84,000/- was disallowed and added to the income of the assessee and the total income of the assessee was assessed to the tune of Rs.53,30,06,030/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who also dismissed the appeal of the assessee, therefore, the assessee has filed the present appeal before us.

We have heard argument advanced by the Ld. Representative of the parties and perused the record. The Ld. Representative of the assessee has argued that the Municipal Corporation has issued the revised notification of the City Vasai-Virar on dated 31.05.2011 and accordingly the claim of the assessee is liable to be considered in view of the provisions u/s 36(1)(viia)(a) of the Act and in this regard the issue has been remanded before the AO by Hon’ble ITAT in the assessee’s own case for A.Y.2012- 13 in dated 19.01.2018, therefore, the present issue is also required to be remanded before the AO to decide the matter afresh on similar lines in the interest of justice. However, on the other hand, the ITA No. 2387/M/2018 A.Y.2010-11 Ld. Representative of the Department has refuted the said contention. In the instant case, the matter of controversy is in connection with the claim raised by assessee in view of the provisions u/s 36(1)(viia)(a) of the Act. This issue has already been restored before the AO by Hon’ble ITAT in the assessee’s own case in dated 19.01.2018 for the A.Y. 2012-13. The relevant finding has been given in para no. 4 which is hereby reproduced as under.:-

On appraisal of the above mentioned finding, we are of the view that the issue is factual which required verification and accordingly the Hon’ble ITAT has also restored the issue before the AO in the assessee’s own case for the A.Y.2012-13 in dated 19.01.2018. In the instant case, the verification is required in connection with the claim raised by assessee in view of notification of the City Vasai-Virar on dated 31.05.2011. In view of the said circumstances, we set aside the finding of the CIT(A) on all the issues and restore the issues before the AO to decide the matter of controversy afresh in view of the guide lines raised by Hon’ble ITAT in the assessee’s own case for the A.Y.2012-13 in ITA.