Case Law Details
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.
3. The assessee being aggrieved with this order of the AO preferred the present appeal before us. We have gone through the relevant order of the AO passed u/s. 154 of the Act, Order of the Ld. CIT (A) and submissions of the Assessee alongwith grounds taken before us.Before we proceed further, it is observed that the Registry pointed out a delay in filing of appeal by the assessee society by 11 days. On this issue the Managing Director of the assessee society has filed an affidavit and an application explaining the facts behind the delay in filing of appeal alongwith appropriate proofs. We have gone through the same and find the same to be in order, Delay of 11 days in filing of appeal is condoned.
4. It is observed that the similar issue has been dealt with by the Hon’ble Jurisdictional High Court mentioned (supra). While deciding the issue the Hon’ble High Court relied on the decisions of Hon’ble Apex Court in the cases of M/s. Associated Power Co. Ltd. vs. CIT (1996) 218 ITR 195 and M/s. Liberty India Ltd. vs. CIT (2009) 317 ITR 218 (SC). We have gone through the decisions rendered by the Hon’ble Apex Court relied upon by the Hon’ble Jurisdictional High Court and observed that the disallowance is tenable in the present case, as the assessee is failed to produce any decision in its favour against the decision of the Hon’ble Jurisdictional High Court.
5. Once a position of law as pronounced by the Hon’ble Jurisdictional High Court and time for taking action is there with the concerned parties, such decision is a binding decision and to be applied retrospectively. As the same is no more debatable and the same can be covered by section 154 of the Act. In view of above, grounds taken by the assessee are rejected.
6. In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 20thday of December 2024.
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