This analysis covers the appeal filed by Zila Sahkari Bank Ltd. against the order of the Commissioner of Income Tax (Appeals), Ghaziabad for the assessment year 2015-16, focusing on the legal challenges and tribunal decisions regarding tax deductions and depreciation claims.
The case ITA 914/DEL/2021 involves Zila Sahkari Bank Ltd. contesting the disallowances made by the Central Processing Centre (CPC) under sections 143(3) and 80P(2)(d) of the Income Tax Act, which were upheld by the National Faceless Appeal Centre (NFAC). The bank challenges the treatment of its dividend income and the denial of depreciation claims on fixed assets.
The primary contention by Zila Sahkari Bank was regarding the eligibility for deduction under section 80P(2)(d) of the Act in respect of dividend income and the right to claim depreciation on fixed assets as per section 32 of the Act. The bank argued that its dividend income should be exempt and that the depreciation on fixed assets was wrongly disallowed due to a clerical error in filing.
The Tribunal noted that the issues were covered by its own previous decisions and directed the CPC to allow the claims for dividend income exemption and depreciation on fixed assets. The Tribunal condemned the lower authorities’ approach of denying depreciation claims on flimsy grounds and misapplying tax provisions.
The Tribunal’s decision in favor of Zila Sahkari Bank Ltd. underscores the importance of accuracy in tax filings and the acknowledgment of rightful claims. This case highlights the tribunal’s role in correcting lower authorities’ errors and ensuring justice in tax assessments.
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