ACIT Vs Canara Bank (ITAT Bangalore)
The Revenue appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2016-17, challenging the deletion of several additions made in the assessment under Section 143(3). The Revenue contended that the CIT(A) had deleted the additions by relying on decisions of the coordinate benches and the Karnataka High Court in the assessee’s own cases, while the assessee submitted that all issues were already covered by binding precedents.
The Tribunal dismissed Ground No. 1 relating to deduction under Section 36(1)(viia) read with Rule 6ABA after finding that the issue had already been decided in the assessee’s own cases for earlier assessment years and no contrary decision had been produced.
The Tribunal upheld deletion of the addition on unrealised gains on revaluation of forward contracts, observing that the CIT(A) had followed the Karnataka High Court and earlier orders in the assessee’s own case.
The Tribunal dismissed the Revenue’s challenge to allowance of CSR expenditure and trust expenses, holding that the issues were covered in favour of the assessee by a coordinate bench decision.
On depreciation of ATMs, the Tribunal upheld the CIT(A)’s direction allowing depreciation at 60% on ATMs by following the Karnataka High Court decision in CIT v. NCR Corporation Limited, while maintaining depreciation at 15% for note-counting machines and electronic weighing machines.
