TMI Blog2015 (7) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... 2005 and 2006-2007 respectively without appreciating the fact that the profit to the extent of Rs,2,01,97,000/- was only the book entry and not the actual profit? - Held that:- The ld. CIT(A), re-examined the issue in detail and has finally held that the Assessing Officer is free to allow loss to the assessee after revising the assessed loss in assessment years 2004-05 and 2006-07 after carrying out proper verification for relevant assessment records of the earlier assessment years, instead of giving a proper direction to re-compute the income keeping in view the provisions for reversal entries initially made in earlier years. Assessing Officer is required to assess proper income in the hands of the assessee. Therefore, the events of earlier years should be kept in mind while computing the real income of the assessee. Since the assessee has placed evidence with respect to the provisions of NPA in earlier years, the said facts require a proper verification. We accordingly modify the order of the ld. CIT(A) and direct the Assessing Officer to examine the claim of the assessee in the light of earlier assessment orders relevant to the assessment years 2004-05 and 2006-07. - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred by the assessee against the order of the ld. CIT(A), inter alia, on the following grounds:- 1. The Learned Commissioner of Income Tax (Appeals)-ll, Lucknow (hereinafter referred to as the Ld. CIT-A) erred on facts and in law in confirming the action of the Learned Assessing Officer in passing the assessment order u/s 144 of the I.T. Act, 1961. 2. The Ld. CIT(A) erred on facts and in law in dismissing the additional ground taken by the appellant that the profit of ₹ 2,86,25,894/-was inclusive of reversal of NPA provisions of ₹ 2,01,97,000/-initially made by the appellant in A.Y, 2004-2005 and 2006-2007 respectively without appreciating the fact that the profit to the extent of Rs,2,01,97,000/- was only the book entry and not the actual profit. 3. The Ld. CIT(A) erred on facts and in law in confirming the disallowance of ₹ 1,23,207/- out of total disallowance of ₹ 2,46,413/- made by the Assessing Officer without appreciating the fact that the appellant is a bank and all the expenses debited to its profit loss account are duly supported with proper bills/ vouchers and the assessing officer completely failed to bring any specific defect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d loss (as per his profit and loss account) of ₹ 47,25,78,21,082/- reducing the total loss to ₹ 16,13,821/-. It was further noticed by the ld. CIT(A) that the assessee has adjusted this figure amounting to ₹ 4,56,44,000/- (1,10,34,000 + 3,46,10,000) by further crediting it to the profit and loss account under the head Reversal of NPA provision in the following years:- A.Y As per Assessee As per record 2007-08 42,77,000 42,77,000 2008-09 18,33,000 18,33,000 2009-10 2,83,63,000 2,83,34,000 2010-11 1,11,71,000 (A.Y. 2004-05)+90,26,000 (A.Y. 2006-07) 1,11,71,000 (A.Y 2004-05)+90,26,000 (A.Y 2006--07) Total till 2010-11 4,56,44,000 (A.Y. 2004-05) + 90,26,000 (A.Y. 2006-07) 4,56,15,000 (A.Y.2004-05 + 90,26,000 (A.Y.2006-07) 6. For assessment year 2009-10, the assessee has credited ₹ 1,05,08,000/- under the head reversal for provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return, no deduction could have been claimed by the assessee. 9. The ld. CIT(A), re-examined the issue in detail and has finally held that the Assessing Officer is free to allow loss to the assessee after revising the assessed loss in assessment years 2004-05 and 2006-07 after carrying out proper verification for relevant assessment records of the earlier assessment years, instead of giving a proper direction to re-compute the income keeping in view the provisions for reversal entries initially made in earlier years. 10. In support of his contention, the ld. counsel for the assessee has also filed the assessment orders for earlier years and during the course of hearing the ld. D.R. has also agreed that let the matter be restored to the Assessing Officer for verification of facts. 11. In the light of rival submissions, we are of the view that the Assessing Officer is required to assess proper income in the hands of the assessee. Therefore, the events of earlier years should be kept in mind while computing the real income of the assessee. Since the assessee has placed evidence with respect to the provisions of NPA in earlier years, the said facts require a proper verificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer and the Assessing Officer has made his comments vide letter dated 1.10.2013. The ld. CIT(A) examined the reply and counter-comments of the Assessing Officer and observed that the assessee is a banker and the amount of interest of ₹ 3,55,95,031/- pertaining to different accounts/depositors should be verified on the point deduction of TDS. He accordingly, in order to meet the ends of justice, asked the assessee to furnish the details of accounts wherein this payment of interest was in excess of 10,000/- has been received. Accordingly the assessee has furnished the detail showing payment of interest exceeding ₹ 10,000/- and form 15H received from the account holders. The same was examined by the ld. CIT(A) and the ld. CIT(A) was of the view that details of total payment of ₹ 25,96,245/- is in excess of ₹ 10,000/- attracting the provisions of TDS. It was also observed by the ld. CIT(A) that the assessee has received form 15H against various payment of interest of aggregating ₹ 23,37,702/-. Though the ld. CIT(A) has also recorded in his order that form 15H are placed on record, on which comments of the Assessing Officer was sought. 18. Being agge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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