THE GHATAL PEOPLES' CO-OPERATIVE BANK LTD.,PASCHIM MIDNAPORE vs. DCIT, CIRCLE - 2, MIDNAPORE

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ITA 2174/KOL/2018Status: DisposedITAT Kolkata20 November 2019AY 2011-122 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the relevant statutory provision was quashed by the jurisdictional High Court and its operation was stayed by the Supreme Court. Therefore, the issue was restored to the Assessing Officer for decision in line with the Supreme Court's final decision.

What were the facts?

The assessee bank's provision for leave encashment of ₹15 lac was disallowed by the lower authorities. This disallowance was made under Section 43B(f) of the Income Tax Act for want of actual payment.

What were the issues?

Whether the disallowance of provision for leave encashment under Section 43B(f) was justified when the said provision was held ultra vires and stayed by higher courts.

Which sections of the Income-tax Act were involved?

Section 43B(f)

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Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

आदेश /O R D E R PER S.S.Godara, Judicial Member:- This assessee’s appeal for assessment year 2011-12 arises against Commissioner of Income Tax (Appeals)-11 Kolkata’s order dated 27.07.2018 passed in case No.507/CIT(A)-11/Mid/14-15/Kol involving proceedings u/s 154 r.w.s. 144 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

The assessee’s sole substantive grievance raised in the instant appeal seeks to reverse both the lower authorities action disallowing its provision of leave encashment of ₹15 lac. u/s 43B(f) of the Act for want of actual payment.

1.

The Ghatal Peoples’Co-Op. Bank Ltd. Vs. DCIT,Cir-2, Mid. Page 2 Suffice to say, there is hardly any dispute that hon'ble jurisdictional high court’s decision in Exide Industries Ltd. vs. Union of India (2007) 292 ITR 470 (Cal) had quashed the statutory provision itself being ultra vires and its operation stood stayed in hon'ble apex court’s order dated 08.05.2009 in SLP No.CC 12060/2008 We therefore restore the instant issue back to the Assessing Officer to be decided in tune with the hon'ble apex court’s final decision in the said lis. The assessee’s sole substantive ground is accepted for statistical purposes.

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