TaxTMI 
TaxTMI 
2016 (1) TMI 135
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....ction 115JB of the Act are applicable to the assessee being a banking company for the Asst Year 2009-10. 3.1. The Learned AR argued that this issue is covered by the coordinate bench decision of this tribunal in the case of UCO Bank vs DCIT in ITA No. 1768/Kol/2009 dated 27.11.2015 for the Asst Year 2002-03. In response to this, the Learned DR fairly conceded that this issue is covered by the said decision. 3.2. We have heard the rival submissions and we find that this issue is squarely covered by the co-ordinate bench decision of this tribunal in the case of UCO Bank vs DCIT in ITA No. 1768/Kol/2009 dated 27.11.2015 for the Asst Year 2002-03. The Tribunal while rendering this judgement duly appreciated the relevant provisions of section 211 of Companies Act, 1956, Insertion of Explanation 3 to section 115JB of the IT Act, 1961, with effect from 1.4.2013 , relevant provisions of section 2(5) of the Companies Act, 1956, definition of 'company' under Banking Regulation Act, 1949, definition of 'company' under Companies Act, 1956, Notes to Clauses to Finance Act, 2012 on the subject of Minimum Alternate Tax (MAT) while introducing Explanation 3 to section 115JB of the IT Act, 19....
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....served that no proof for the remittance of TDS was produced by the assessee and accordingly did not entertain the claim of deduction u/s 40(a)(ia) of the Act which was also upheld by the Learned CIT(A). Aggrieved, the assessee is in appeal before us on the following ground:- "3. For that on the facts of the case, ld.CIT(Appeals) was wrong in not considering the fact and confirming previous year's expenditure amounting to Rs. 15,16,519.00, although the T.D.S on the said expenditure was duly deposited in the present financial year, moreover in the assessment year 2008-09 the said expenditure was disallowed u/s. 40(a)(ia) on non-deposit of TDS, therefore, the C.I.T(A) was wrong in not allowing Rs. 15,16,519.00 which is completely arbitrary, unjustified and illegal." 4.2. The Learned AR prayed that one more opportunity be given to the assessee for proving the fact of remittance of TDS before the Learned AO during the Asst year 2009-10. In response to this, the Learned DR vehemently supported the orders of the lower authorities. 4.3. We have heard the rival submissions and in the facts and circumstances of this case, we deem it fit and appropriate , in the interest of jus....
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....e rental figure of Rs. 2,61,58,020/- and income from house property was computed accordingly by giving deduction towards municipal taxes paid and standard deduction @ 30% on the balance. On first appeal, the Learned CITA accepted the contentions of the assessee and accordingly directed the Learned AO to adopt the municipal valuation for assessment of rental income from subject mentioned properties. Aggrieved, the revenue is in appeal before us on the following ground:- "1. Whether on the facts and circumstances of the case, ld.CIT(A) erred in law in holding that municipal valuation for rent is accepted to be appropriate reasonable and reliable as evidence. " 8.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR argued that the subject mentioned properties are old properties and are let out to different tenants for the last 30 years. In all the earlier assessment years, the income declared by the assessee bank from the subject mentioned properties were accepted by the department and assessments completed u/s 143(3) of the Act. He argued that the assessee had offered the municipal valuation of properties which is higher ....
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.....magicbricks.com cannot be treated as a reliable evidence. Hence we find no infirmity in the order of the Learned CITA. Accordingly, the ground no.1 raised by the revenue is dismissed. 8. The next issue to be decided in this appeal is as to whether the expenditure incurred towards debit cards to the tune of Rs. 69,23,167/- be treated as revenue expenditure in the facts and circumstances of the case. 8.1. The brief facts of this issue is that the assessee incurred a sum of Rs. 69,23,167/- towards issuance of debit cards to its customers which are valid for a period of 5 years. The Learned AO observed that since the cards are valid for 5 years, the same are to be treated as capital expenditure and accordingly disallowed the same in the assessment. On first appeal, the Learned CIT(A) deleted the addition. Aggrieved, the revenue is in appeal before us on the following ground:- "2. Whether on the facts and circumstances of the case, ld.CIT(A) erred in law in holding that the expenditure on ATM cum debit card be treated as revenue expenditure. " 8.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR argued that the incu....
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....d not in respect of demand deposits. The Learned AO did not agree with this proposition and sought to disallow the interest on matured term deposits to the tune of Rs. 21,66,00,000/- for violation of TDS provisions and made disallowance u/s 40(a)(ia) of the Act. On first appeal, the Learned CIT(A) appreciated the contentions of the assessee and deleted the disallowance. Aggrieved, the revenue is in appeal before us on the following ground:- "3. Whether on the facts and circumstances of the case, ld.CIT(A) erred in law in holding that provisions of Sec 194A rws 40(a)(ia) is not applicable on payment of interest on matured term deposits." 9.2. The Learned DR vehemently supported the order of the Learned AO. In response to this, the Learned AR reiterated the arguments advanced by the assessee before the Learned AO. In addition to that, he argued that no disallowance on this account was made by the department in the earlier years. In support of this contention, he placed the copy of the Learned CIT(A) order for the Asst Year 2007-08. 9.3. We have heard the rival submissions and find that the provisions of section 194A(3)(vii) of the Act makes it clear that the provisions....
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....deduct tax at source on interest provided on those demand deposits. Hence in these circumstances, we find that the Learned CITA had rightly granted relief to the assessee bank in this regard. Accordingly, the ground no. 3 raised by the revenue is dismissed. 10. The last issue to be decided in this appeal is as to whether disallowance u/s 14A of the Act read with Rule 8D(2)(ii) of the Rules could be made applicable to the assessee bank in the facts and circumstances of the case. 10.1. The brief facts of this issue is that the assessee bank was in receipt of exempted dividend income of Rs. 3,54,45,760/-. The Learned AO invoked the provisions of section 14A of the Act read with Rule 8D(2)(ii) and (iii) of the Rules and made disallowance of Rs. 13,10,65,100/- and Rs. 1,21,01,500/- respectively. On first appeal, the Learned CIT(A) held that the assessee has got sufficient own funds to the extent of Rs. 4532.27 crores as on 31.3.2009 to make investment of Rs. 242.03 crores and hence no part of borrowed funds were utilized for making investments. Accordingly, the provisions of Rule 8D(2)(ii) cannot be made applicable and deleted the disallowance u/s 14A to the tune of Rs. 13,10,65,1....