Case Law Details
ACIT Vs Villupuram District Central Co-operative Bank Ltd (ITAT Chennai)
ITAT Chennai held that only the mistake apparent from record which can be rectified but where two views are possible or there is a debate available, it cannot be rectified u/s.154 of the Income Tax Act.
Facts- The assessee is a co-operative bank. The assessee’s case was selected for scrutiny assessment under CASS. The AO made certain additions by making disallowance of inadmissible items and also recomputed the claim of deduction u/s. 36(1)(viia) of the Act. The assessee is in appeal against this assessment order before CIT(A) i.e., separate proceedings pending.
In the mean time, the reassessment proceedings was initiated vide notice issued u/s.148 of the Act dated 20.03.2014 and served on the assessee. Accordingly, reassessment was framed u/s.143(3) of the Act vide order dated 26.03.2015 by making disallowance of deduction of Rs.3,47,01,173/- towards release of provisions and non-statutory reserves. Another disallowance was made on account of deduction claimed u/s.36(1)(viia) of the Act on account of non-creation of reserve and doubtful debts amounting to Rs.9,78,37,443/-. Aggrieved, assessee preferred appeal before CIT(A). CIT(A) quashed the reopening. Being aggrieved, revenue has preferred the present appeal.
Conclusion- In the absence of any failure on the part of the assessee to disclose fully and truly all material facts and assessment framed u/s.143(3) of the Act and now reopening beyond 4 years which is against the provisions of the Act. Hence, we find no infirmity in the order of CIT(A) and the same is confirmed. This appeal of the Revenue is dismissed.
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