Case Law Details
ACIT Vs Jila Sahakari Kendriya Bank Maryadit (ITAT Raipur)
ITAT Raipur held that once it is established that the commission income were receivable, the said commission income is liable to be brought to tax in the year in which the same has been accured.
Facts- The assessee is a co-operative society. Pr. CIT, Bilaspur after culmination of the assessment proceedings called for the assessment records of the assessee society.
On a perusal of the records, it was observed by the Pr. CIT that the Chartered Accountant (CA) of the assessee society in his audit certificate had reported that the assessee society had not accounted for the service charges of Rs.640.16 lacs that was receivable from the State Government for the work of procurement of paddy carried out on behalf of various co-operative societies. The Pr. CIT backed by the aforesaid observation of the CA observed on a perusal of the records that the assessee bank had not accounted for its income i.e. service charges of Rs.640.16 lac that was receivable by it from the State Government on procurement of 1,47,56,017.94 quintals of paddy on behalf of various co-operative societies of a value of Rs.1,60,040.41 lacs on which it was entitled for service charges @0.40%. The Pr. CIT on the basis of his aforesaid observation therein vide his order passed u/s.263(1) dated 30.03.2017 held the assessment order passed by the A.O u/s. 143(3) of the Act dated 31.01.2015 as erroneous in so far it was prejudicial to the interest of the revenue and directed him to frame a fresh assessment after affording a proper opportunity of being heard to the assessee.
Accordingly, the A.O vide his order passed u/s. 143(3) r.w.s. 263 of the Act dated 31.10.2017 determined the income of the assessee society at Rs.17.68 crore (approx.).
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