Sabarkantha Dist.Cent.Co.Op.Bank ... vs Department Of Income Tax

सम ी जी.डी.अ वाल, उपा य (अहम. े ) एवं ी कुल भारत, या यक सद य । BEFORE SHRI BEFORE SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) And SHRI KUL BHARAT, JUDICIAL MEMBER

आयकर अपील सं./I.T.A. No. 626/Ahd/2012 ( नधा रण वष / Assessment Year : 2007-08) The Asst.CIT बनाम/ The Sabarkantha Sabarkantha Circle Vs. Dist.Central Co-op.Bank Himatnagar Ltd. Himatnagar Dist.Sabarkantha थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AAAAT 1019 O (अपीलाथ( /Appellant) .. ()*यथ( / Respondent)

अपीलाथ( ओर से / Appellant by : Shri Nimesh Yadav, Sr.DR )*यथ( क, ओर से/Respondent by : -None-

सन ु वाई क, तार/ख / Dat e of H e a r i ng 28/05/2015 घोषणा क, तार/ख /Da t e of Pr o n o u n c em e n t 05/06/2015

आदे श / O R D E R

PER SHRI KUL BHARAT, JUDICIAL MEMBER :

This appeal by the Revenue is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-VIII, Ahmedabad ('CIT(A)' in short) dated 19/12/2011 pertaining to Assessment Year (AY) 2007-08. The Revenue has raised the following grounds of appeal:-

1. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.75,58,970/- on account of investment depreciation account without appreciating the fact that the said amount was notional depreciation of Government of India securities as on 31.3.2007 which were held by the bank as investment and not as stock.

ITA No.626/Ahd/2012 ACIT vs. The Sabarkantha Dist.Central Coop.Bank Ltd.

Asst.Year - 2007-08 -2-

2. On the facts and in the circumstances of the case, the Ld.CIT(A) ought to have upheld the order of the Assessing Officer.

3. It is, therefore, prayed that the order of the Ld.CIT(A) may be set aside and that of the Assessing Officer may be restored to the above extent.

2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as "the Act") was framed vide order dated 07/12/2009, thereby the Assessing Officer (AO in short) made addition of Rs.75,58,970/- in respect of investment depreciation account. Against this, assessee filed an appeal before the ld.CIT(A), who after considering the submissions deleted the disallowance. Now, the Revenue is in appeal before us.

3. Apropos to ground No.1, the ld.Sr.DR supported the order of the AO and submitted that the ld.CIT(A) was not justified in deleting the addition.

3.1. None appeared on behalf of the assessee. However, a letter dated 08/05/2015 is placed on record by Shri Ashivn C.Shah on behalf of the assessee. The ld.counsel for the assessee sought adjournment on the ground that personal difficulties he is unable to attend the hearing.

4. We have heard the ld.Sr.DR, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has followed the decision of his predecessor passed for AY ITA No.626/Ahd/2012 ACIT vs. The Sabarkantha Dist.Central Coop.Bank Ltd.

Asst.Year - 2007-08 -3-

2004-05 and also the decision of the Coordinate Bench passed in ITA No.1819 & 1820/Ahd/2005 dated 29/09/2005 as well as the ratio laid down by the Hon'ble Supreme Court in the case of United Commercial Bank vs. CIT reported at (1999)240 ITR 355(SC) and CIT vs. Woodward Governor India(P.)Ltd. reported at (2009) 312 ITR 254(SC) while allowing the claim of assessee. The ld.Sr.DR could not distinguish the decision relied upon by the ld.CIT(A). Therefore, we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. Thus, ground No.1 of Revenue's appeal is dismissed.

5. Ground Nos.2 & 3 are general in nature which require no independent adjudication.

6. In the result, Revenue's appeal stands dismissed.

Order pronounced in the Court on Friday, the 5th day of June, 2015 at Ahmedabad.

Sd/- Sd/- (जी.डी.अ वाल) (कुल भारत) उपा य (अहम. े ) या यक सद य ( G.D. AGARWAL ) ( KUL BHARAT ) VICE PRESIDENT (AZ) JUDICIAL MEMBER

Ahmedabad; Dated 5/ 06 /2015 ट/.सी.नायर, व. न.स./T.C. NAIR, Sr. PS ITA No.626/Ahd/2012

ACIT vs. The Sabarkantha Dist.Central Coop.Bank Ltd.

Asst.Year - 2007-08 -4-

आदे श क! " त$ल%प अ&े%षत/Copy of the Order forwarded to :

1. अपीलाथ( / The Appellant

2. )*यथ( / The Respondent.

3. संबं8धत आयकर आयु:त / Concerned CIT

4. आयकर आयु:त(अपील) / The CIT(A)-VIII, Ahmedabad

5. ;वभागीय ) त न8ध, आयकर अपील/य अ8धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड= फाईल / Guard file.

आदे शानुसार/ BY ORDER,

स*या;पत ) त //True Copy//

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad

1. Date of dictation .. 28.5.15 (dictation-pad 3+ pages attached at the end of this File)

2. Date on which the typed draft is placed before the Dictating Member ..29.5.15

3. Other Member...

4. Date on which the approved draft comes to the Sr.P.S./P.S.................

5. Date on which the fair order is placed before the Dictating Member for pronouncement......

6. Date on which the fair order comes back to the Sr.P.S./P.S.......5.6.15

7. Date on which the file goes to the Bench Clerk.....................5.6.15

8. Date on which the file goes to the Head Clerk..........................................

9. The date on which the file goes to the Assistant Registrar for signature on the order..........................

10. Date of Despatch of the Order..................