Kota Central CO-OP. Bank Ltd Vs DCIT (ITAT Jaipur)
Assessee is a co-operative Bank. Assessment was completed u/s 143(3) at Rs. 7, 86, 05,056/- after allowing a claim of Rs.23,27,543/- towards contribution towards PACS development fund as business expenditure. Thereafter, by virtue of the audit comments, a notice u/s. 154 of the Act was issued vide dated: 11.03.2022. Subsequently notice u/s 154 was issued and claim of the assessee towards contribution to PACS development fund was disallowed after relying upon the decision of the Hon’ble High Court of Rajasthan in the case of Churu Central Cooperative Bank Ltd. vs. Commissioner of Income Tax, Jaipur D.B. ITA No. 254/2011. CIT (A) dismissed appeal filed by assesssee.
On further appeal ITAT have held that assessee failed to produce any decision in its favour against the decision of the Hon’ble Jurisdictional High Court. Once a position of law as pronounced by the Hon’ble Jurisdictional High Court, such decision is a binding decision and to be applied retrospectively. Grounds taken by the assessee are rejected and appeal is dismissed.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This appeal by assessee is directed against the order of NFAC, Delhi dated 17.04.2024 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’) for A.Y. 2017-18. The assessee has raised the following grounds of appeal:-
1 Deleting addition of Rs. 2, 32, 7,543/- on account of amount contributed to PACS development fund.
2. The appellant craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing.
2. The brief facts of the case are that the assessee is a co-operative Bank, duly registered with the Registrar of Co-operative Societies, Cooperative Department, Govt. of Rajasthan. The case of the assessee was assessed u/s. 143(3) of the Act vide order dated: 20.12.2019 at Rs. 7, 86, 05,056/- after allowing a claim of Rs. 23,27,543/- towards contribution towards PACS development fund as business expenditure. Thereafter, by virtue of the audit comments, a notice u/s. 154 of the Act was issued vide dated: 11.03.2022. Consequent to the notice u/s. 154 of the Act, an order was passed against the assessee and claim of the assessee towards contribution to PACS development fund was disallowed, as the Revenue relied on the decision of the Hon’ble High Court of Rajasthan in the case of Churu Central Cooperative Bank Ltd. vs. Commissioner of Income Tax, Jaipur D.B. ITA No. 254/2011, dated: 24.04.2017.
