THE KOTA CENTRAL COOPERATIVE BANK LTD,KOTA vs. DCIT, CIRCLE-2, KOTA

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ITA 912/JPR/2024Status: DisposedITAT Jaipur20 December 2024AY 2017-184 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the disallowance was tenable as the assessee failed to produce any contrary decision to the binding precedent of the Jurisdictional High Court. The decision of the High Court was considered to be applicable retrospectively.

What were the facts?

The assessee, a co-operative bank, claimed a contribution to a PACS development fund as a business expenditure. This claim was initially allowed but later disallowed by the AO under Section 154, relying on a Rajasthan High Court decision.

What were the issues?

Whether the contribution to the PACS development fund is a deductible business expenditure. Whether a High Court decision can be applied retrospectively under Section 154.

Which sections of the Income-tax Act were involved?

Section 154,Section 250

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, JAIPUR BENCH “B”, JAIPUR

Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL

For Appellant: Mr. Pradeep Garg, Adv. (Th.V.C), Ld. AR
For Respondent: Mr. Anoop Singh, Add. CIT (Th. V.C.)
Hearing: 12/12/2024Pronounced: 20/12/2024

PER GAGAN GOYAL, A.M: This appeal by assessee is directed against the order of NFAC, Delhidated 17.04.2024 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’) for A.Y. 2017-18. The assessee has raised the following grounds of appeal:-

1.

1. 1 Deleting addition of Rs. 2, 32, 7,543/- on account of amount contributed to PACS development fund.

2.

The appellant craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing.

2. The brief facts of the case are that the assessee is a co-operative Bank, duly registered with the Registrar of Co-operative Societies, Cooperative Department, Govt. of Rajasthan. The case of the assessee was assessed u/s. 143(3) of the Act vide order dated: 20.12.2019 at Rs. 7, 86, 05,056/- after allowing a claim of Rs. 23,27,543/- towards contribution towards PACS development fund as business expenditure. Thereafter, by virtue of the audit comments, a notice u/s. 154 of the Act was issued vide dated: 11.03.2022. Consequent to the notice u/s. 154 of the Act, an order was passed against the assessee and claim of the assessee towards contribution to PACS development fund was disallowed, as the Revenue relied on the decision of the Hon’ble High Court of Rajasthan in the case of Churu Central Cooperative Bank Ltd. vs. Commissioner of Income Tax, Jaipur D.B. dated: 24.04.2017.

3. The assessee being aggrieved with this order of the AO preferred the present appeal before us. We have gone through the relevant order of the AO passed u/s. 154 of the Act, Order of the Ld. CIT (A) and submissions of the Assessee alongwith grounds taken before us.Before we proceed further, it is observed that the Registry pointed out a delay in filing of appeal by the assessee society by 11 days. On this issue the Managing Director of the assessee society has filed an affidavit and an application explaining the facts behind the delay in filing of appeal alongwith appropriate proofs. We have gone through the same and find the same to be in order, Delay of 11 days in filing of appeal is condoned.

4.

It is observed that the similar issue has been dealt with by the Hon’ble Jurisdictional High Court mentioned (supra). While deciding the issue the Hon’ble High Court relied on the decisions of Hon’ble Apex Court in the cases of M/s.

Associated Power Co. Ltd. vs. CIT (1996) 218 ITR 195 and M/s. Liberty India Ltd. vs. CIT (2009) 317 ITR 218 (SC). We have gone through the decisions rendered by the Hon’ble Apex Court relied upon by the Hon’ble Jurisdictional High Court and observed that the disallowance is tenable in the present case, as the assessee is failed to produce any decision in its favour against the decision of the Hon’ble Jurisdictional High Court.

5.

Once a position of law as pronounced by the Hon’ble Jurisdictional High Court and time for taking action is there with the concerned parties, such decision is a binding decision and to be applied retrospectively. As the same is no more debatable and the same can be covered by section 154 of the Act. In view of above, grounds taken by the assessee are rejected.

6.

In the result, the appeal of the assessee is dismissed.

Order pronounced in the open court on 20thday of December 2024. Sd/- Sd/- (Dr. S. SEETHALAKSHMI) (GAGAN GOYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Jaipur, िदनांक/Dated: 20/12/2024 Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. आयकर आयु� CIT 3. 4. िवभागीय �ितिनिध, आय.अपी.अिध., Sr.DR., ITAT, 5. गाड� फाइल/Guard file. BY ORDER, //True Copy// (Asstt.Registrar)

ITAT, Jaipur Details Date Initials Designation 1 Draft dictated on PC on 20.12.2024 Sr.PS/PS 2 Draft Placed before author 20.12.2024 Sr.PS/PS 3 Draft proposed & placed before the Second JM/AM Member 4 Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date of Dispatch of order

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