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ACIT, Bhiwani Versus Haryana Kshetriya Gramin Bank City Centre, Bhiwani

Maintainability of appeal - Disallowance of provision made for write off of loans - Addition on account of irrecoverable interest pertain to the provision for bad and doubtful debts - CIT(A) deleted the additions - Held that:- As decided in assessee’s own case for the A.Y. 2002-03 the assessee is a Cooperative Grameen Bank which filed its return of income for loss after claiming various deductions mentioned in the impugned order and the AO has disallowed the same but finally deleted by the ITAT. .....

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- ALLAHABAD HIGH COURT), the appeals filed by the Revenue are not maintainable. - Decided in favour of assessee. - ITA No.2950 & 2951/Del/2008, ITA No.582/Del/2009 - Dated:- 20-8-2015 - SHRI H.S.SIDHU AND SHRI O.P.KANT, JJ. For The Appellant : Sh. Sujit Kumar, Sr.D.R. For The Respondent : Sh. Naveen Kumar Goel, C.A. ORDER PER H.S. SIDHU, JUDICIAL MEMBER All these three appeals are filed by the Revenue against the order of Ld. CIT(A), Rohtak dt. 4.7.2008 for the A.Y. 2003-04 and 2004-05 and da .....

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icularly when these type of provisions are not admissible under the law. 2. Whether on the facts and in the circumstances of the case, the Ld. CIT(A), Rohtak was right in deleting addition of ₹ 1,15,91,500/- made on account of irrecoverable interest pertain to the provision for bad and doubtful debts when these types of provisions are not admissible under the law. 3. Whether on the facts and in the circumstances of the case, the Ld. CIT(A), Rohtak was right in deleting addition of ₹ .....

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ake of convenience we are disposing of these three appeals by passing a consolidated order. 3. At the time of hearing the Ld. Counsel for the assessee also stated that the tax effect in these appeals is less than ₹ 4 lakhs and the appeals filed by the Revenue are not maintainable in view of Instruction No.5/2014 dt. 10th July, 2015. He further stated that even if the additions were sustained there would be no tax due and the tax effect would be nil as the assessee was enjoying the benefit .....

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5. We have heard both the parties and perused the material placed on record and orders of the authorities below. We are of the view that the assessee is a Cooperative Grameen Bank which filed its return of income for loss after claiming various deductions mentioned in the impugned order and the AO has disallowed the same but finally deleted by the ITAT. In view of the Instruction No.5 of the CBDT dated 10.7.2014, the present appeal is not maintainable. As per the records and the grounds raised b .....

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h Court judgement: 5. After hearing both the parties and on perusal of the records, it appears that the assessee is enjoying the benefit of section 80P of the Act and as such the tax on an income is exempted. Even if the addition is sustained, there will be no tax demand as the tax effect will be nil. 6. In the case of CIT vs. Manglam Ricinus Ltd. (2008) 174 Taxman 186 (Del), the Hon ble Delhi High Court observed that in such type of cases, the exercise shall be merely academic exercise. 7. In t .....

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dings as per law, if need be arises. But presently, we do not find any reason to interfere with the concurrent findings recorded by both the appellate authorities. The same are hereby sustained along with the reasons mentioned therein. 9. The answer to the substantial question of law is in negative i.e. in favour of the assessee and against the department. 10. In view of the above, the appeal filed by the department is dismissed, as stated above. 5.1. Keeping in view the CBDT Instruction no.5 of .....

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e Hon ble Delhi High Court in the case of CIT vs. Delhi Race Club Ltd. in ITA no.128/2008, order dt. 3.3.2011 by following the earlier order dt. 2.8.2010 in ITA 179/1991 in the case of CIT,Delhi III vs. M/s PS Jain & Co. held that such Circular would also be applicable to pending cases. 5.3. Thus from the ratio laid down by the Hon ble Delhi High Court, it is clear that the instructions issued in the circulars by CBDT are applicable for pending cases also. Therefore, keeping in view the rati .....

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gned order dt. 4.7.2008 passed by the Ld. CIT(A) for the A.Y. 2003-04 in ITA no.2950/Del/2008 para 2 to 8 pages 2 to 5: 2. In response to notice under section 250, Sh. B. B. Jain, Advocate and Sh. V.K.Y.Khanna, Manager attended the proceedings and filed written submissions. The written submissions were confronted to the AO for his comments. The AO gave his comments as per his remand report dated 115.5.2008. The submissions made by the appellant and the remand report of the AO have been duly cons .....

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nnual report was actually filed before him during the assessment year. It has further been actually filed before him during the assessment year. It has further been submitted that the total advances pertaining to 90 branches have been ₹ 1687108000/- out of which average advances given by 15 Urban branches have been ₹ 385486000/- and advances made by 75 Rural branches have been ₹ 1301622000/-, 10% of which works out to ₹ 130162200/- whereas the appellant has claimed only & .....

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s made by the appellant. Since the figures mentioned in the assessment order did not tally with the figures as per annual report, the AR of the appellant requested for the matter to be referred to the AO for examination of the books of accounts viz-a-viz the figures mentioned in the assessment order and those submitted by it in the written submissions. Accordingly a letter was written to the AO on 9.5.2008 conveying as under. "During the appeal proceedings before the undersigned. the appell .....

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s submitted by the appellant (copies enclosed herewith), after examining the books of accounts of the appellant for which you are duly authorised and the appellant has been directed to produce the same before you, and send your detailed reports keeping in view the appeal order of the CIT(A) Kamal for the AY. 2002-03 in the appellant's own case. It will be appreciated if the requisite reports for both the A.Ys are received in this office by 30.5.2008 to enable me to dispose off the appeal. As .....

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and the grounds of appeal are allowed. It is pertinent to mention here that the AR of the appellant has pointed out during appeal proceedings on 01.07.2008 that the order of the CIT CA) Kamal dated 20.11.2006 has been confirmed by the Hon'ble IT AT Delhi Bench and that the decision in this regard has been pronounced in the open court; i.e. the appeal of the Department against the order of CIT CA) has been dismissed. 5. Ground of appeal bearing nos. 5 pertains to addition of ₹ 11591500 .....

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