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2015 (3) TMI 1148 - AT - Income TaxRevision under section 263 - nominal membership fees received by the assessee from such persons, who were not the members of the cooperative society, but were associated with it on account of certain transactions - Held that:- The assessee had not declared the said receipts on the premise that the same were capital receipts. However, the said receipts were in the nature of nominal membership fees or entrance fees charged by the assessee from such nonexisting members of the cooperative society who had transacted with the assessee society and hence, the said receipts were to be charged as revenue receipts in the hands of the assessee. In view of the admission of the learned Authorized Representative for the assessee in this regard, we uphold the order of Commissioner in including sum of ₹ 52,960/- as income of the assessee - Decided against assessee Interest accrued on NPAs - Held that:- Since the issue has already been settled, then the non-assessability of such income on accrual basis i.e. interest on NPAs, by the Assessing Officer cannot be said to be prejudicial to the interest of Revenue. However, the said principle is to be applied only in respect of non-recognition of income on accrual basis relatable to NPAs and not on the said income received by the assessee on receipt basis during the captioned assessment year. The Assessing Officer in the first round of proceedings had already made an addition of ₹ 1,62,42,236/-. in the hands of the assessee, which has been upheld by the CIT(A) and though the ground of appeal has been raised by the assessee in this regard in ITA No.237/PN/2013, but the contention of the learned Authorized Representative for the assessee before us was that the said ground of appeal is not being pressed. Once a particular addition has been made in the hands of the assessee by the Assessing Officer in the assessment order, then no further addition can be made on that basis, by way of initiation of proceedings under section 263 of the Act. Accordingly, we hold that the exercise of jurisdiction by the Commissioner under section 263 of the Act in respect of interest income relatable to NPAs is invalid as the assessment order passed by the Assessing Officer is not prejudicial to the interest of Revenue and such order even if erroneous, cannot give power to the Commissioner to initiate proceedings under section 263 of the Act. - Decided in favour of assessee Addition on amount of dividend forfeited and credited to the Reserve account - Held that:- The Revenue is not in appeal against the relief allowed by the CIT(A) in assessment year 2009-10 and in view of the ratio laid down by Delhi Bench of the Tribunal in Gulshan Mercantile Urban Coop. Bank Ltd. [2011 (4) TMI 1359 - ITAT DELHI] and also in view of the fact that such reversal of unclaimed dividend and credit to the Reserve Account cannot be treated as income of the assessee under section 28 of the Act, we direct the Assessing Officer to delete the addition - Decided in favour of assessee Addition on account of the transfer of creditors balance to Reserve Fund - claim of the assessee before us was that the provisions of section 41(1) of the Act were not applicable - Held that:- No merit in the plea of the assessee in this regard in view of the fact that the assessee itself had transferred the credit balance of unclaimed creditors to the Reserve Accounts and the provisions of section 41(1) of the Act are clearly attracted, wherein it is provided that where any allowance of deduction has been made in the assessment for any year in respect of any loss, expenditure or trading liability incurred by the assessee and subsequently, during any previous year if any benefit has been obtained by the said person by way of remission or cessation thereof, then the amount obtained by such person or the value of benefit accruing to him, shall be deemed to be the profits and gains of business or profession. In the facts of present case also, the assessee on its own motion had transferred the credit balance due from creditors against expenses to its Reserve Fund and the provisions of section 41(1) of the Act were clearly applicable. - Decided against assessee Claim of expenditure on amortization of premium of HTM securities entitled to assessee Disallowance of audit fees under section 43B - Held that:- Audit fees is not included under section 43B of the Act and hence, we find no merit in the order of Assessing Officer, in this regard. Accordingly, we direct the Assessing Officer to allow the expenditure booked on account of audit fees payable. - Decided in favour of assessee Allowability of loss on merger of Sinhagad Urban Co-operative Bank Ltd.- alternative depreciation on difference in asset and liability of bank merged - Held that:- Authorized Representative for the assessee fairly admitted that the issue may be remitted back to the file of CIT(A) to examine the allowability of depreciation on intangible assets under section 32(1)(ii) of the Act, in the light of ratio laid down in The Cosmos Co-op Bank Ltd. Vs. DCIT (2014 (1) TMI 1696 - ITAT PUNE ) wherein held difference paid by the assessee in excess of liabilities over the realizable values of the assets taken over represent payment for any business or commercial rights of similar nature and are liable to be construed as intangible asset, contemplated under section 32(1)(ii) of the Act. Accordingly, it was held that the assessee is entitled to the allowance of depreciation in terms of section 32(1)(ii) of the Act. In view thereof, we restore this issue back to the file of CIT(A) to re-adjudicate the issue
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