Case Number: ITA 631/DEL/2019
Appellant: ACIT, Circle-20(1), New Delhi
Respondent: Punjab & Sind Bank, New Delhi
Assessment Year: 2014-15
Result: Dismissed
Case Filed On: 2019-01-29
Order Type: Final Tribunal Order
Date of Order: 2022-01-05
Pronounced On: 2022-01-05
The case of ACIT vs Punjab & Sind Bank in the Income Tax Appellate Tribunal (ITAT) for the assessment year 2014-15 revolves around the dismissal of the Revenue’s appeal. This article provides an in-depth analysis of the case, the proceedings, and the final judgment that led to the dismissal of the appeal.
Punjab & Sind Bank, the respondent in this case, faced scrutiny from the Income Tax Officer (ITO), Circle-20(1), New Delhi. The bank electronically filed its return of income for AY 2014-15 on 28.11.2014, declaring a loss of Rs. 258,29,70,121/- under the normal provisions of the Income Tax Act, 1961, and a book profit of Rs. 900,02,73,036/- under section 115JB of the Act. The return was subsequently revised on 17.03.2016 without any change in the income reported. The case was selected for scrutiny, and assessment was framed under section 143(3) of the Act, determining the total income at Rs. 519,14,68,198/- and the book profit at Rs. 1002,46,68,618/-. Aggrieved by the AO’s order, the assessee appealed to the Commissioner of Income Tax (Appeals)-7, New Delhi (CIT(A)), who granted substantial relief. Dissatisfied with the CIT(A)’s order, the Revenue filed an appeal with the ITAT.
The appeal was heard by the ITAT Bench ‘F’, New Delhi, comprising Sh. Anil Chaturvedi, Accountant Member, and Sh. Narender Kumar Choudhary, Judicial Member. The hearing was conducted through video conferencing due to ongoing pandemic restrictions. The case was heard on 29.12.2021, and the order was pronounced on 05.01.2022.
The Revenue raised several grounds of appeal, challenging the CIT(A)’s acceptance of the assessee’s books of accounts and the deletion of various additions. However, the Learned Authorized Representative (AR) for the assessee, Shri Vivek Gupta, C.A., argued that the issues had been settled in favor of the assessee in earlier years, and the CIT(A)’s order should be upheld. The Senior Departmental Representative (Sr. DR), Ms. Nidhi Srivastava, supported the AO’s order but could not present any new distinguishing facts or evidence.
After considering the submissions and examining the material on record, the ITAT found that the issues raised by the Revenue had already been settled in favor of the assessee in earlier years. The Tribunal noted that the CIT(A) had followed the decisions of his predecessors and the Tribunal in similar cases. Therefore, the ITAT upheld the CIT(A)’s order and dismissed the Revenue’s appeal.
The first ground of appeal was related to the deletion of the addition on account of disallowance of depreciation on securities amounting to Rs. 372,70,70,520/-. The Tribunal found that the issue was identical to that in the assessee’s own case for AY 2013-14, where the Tribunal had dismissed the Revenue’s appeal, following the order of the Hon’ble Supreme Court in the case of UCO Bank vs. CIT 240 ITR 355 (SC). The ITAT upheld the CIT(A)’s decision to delete the addition.
The second and fourth grounds of appeal were related to the disallowance of contribution to the Punjab & Sind Bank Employees Pension Fund Trust under section 36(1)(iv) of the Act. The Tribunal found that the issue was identical to that in the assessee’s own case for earlier years, where the Tribunal had dismissed the Revenue’s appeal, following the decisions of the Hon’ble Delhi High Court and the ITAT in the assessee’s favor. The ITAT upheld the CIT(A)’s decision to delete the addition.
The third and fifth grounds of appeal were related to the disallowance under section 14A of the Act. The Tribunal found that the issue was identical to that in the assessee’s own case for AY 2013-14, where the Tribunal had deleted the addition, following the decision of the Hon’ble Supreme Court in the case of Maxopp Investment Ltd. vs. CIT (2018) 402 ITR 640 (SC). The ITAT upheld the CIT(A)’s decision to delete the addition.
In conclusion, the ITAT’s decision in the case of ACIT vs Punjab & Sind Bank for the assessment year 2014-15 highlights the importance of following judicial precedents and maintaining consistency in tax litigation. The dismissal of the Revenue’s appeal underscores the need for accurate assessment and adherence to established legal principles. This case serves as a reference for similar disputes, emphasizing the significance of following CBDT guidelines and judicial decisions in tax adjustments and related appeals.
Order pronounced in the open court on 05.01.2022 by the Accountant Member Sh. Anil Chaturvedi and the Judicial Member Sh. Narender Kumar Choudhary.
Source: Income Tax Appellate Tribunal Delhi Bench ‘F’, New Delhi
Disclaimer: This article provides a general overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
ACIT vs Punjab & Sind Bank: Tax Dispute for AY 2014-15 Dismissed After Detailed Review
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