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2022 (2) TMI 112 - AT - Income TaxRectification u/s 154 - non following of Instruction No.17/2008 dated 26.11.2008 during the course of appeal proceedings - HELD THAT:- AR stated on merits that the issue is covered by the decision of Hon’ble Supreme Court in the case of CIT vs. Nawanshahar Central Co-opertive Bank Ltd. [2005 (8) TMI 28 - SC ORDER] wherein the Board Circular No.18/2015 dated 02.11.2015 has clarified that the investments held by the banking concern are part of business of banking and therefore, the income from the same is taxable under the head ‘profits and gains of business’. According to him, the natural corollary of the circular and the decision of Hon’ble Supreme Court is that the investments remained at the end of the year has to be treated as stock-in-trade and the settled principle is that the stock-in-trade should be valued at lower of cost or market value. Similar are the facts in assessee’s case. Claim of deduction u/s.36(1)(viia) - The issue is squarely covered by Co-ordinate Bench decision of ITAT in assessee’s own case in [2019 (3) TMI 1002 - ITAT CHENNAI] for assessment year 2007-08 and moreover this issue is covered by the decision of Hon’ble High Court of Calcutta in the case of PCIT vs. Uttarbanga Kshetriya Gramin Bank [2018 (5) TMI 903 - CALCUTTA HIGH COURT] - In view of the above, both the issues are covered, as noted above, the issue cannot be taken up under rectification proceedings. The issue is first of all highly debatable and requires legal arguments. Even otherwise both the issues i.e., depreciation on investments and claim of deduction u/s.36(1)(viia) of the Act, both are covered in assessee’s own case by Tribunal Benches as well as by the Hon’ble Jurisdictional High Court in assessee’s own case and the Hon’ble High Court of Calcutta. Hence, we find no error in the order of CIT(A) and hence, the appeal of Revenue is dismissed.
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