Commissioner of Income-tax-II, Nagpur v. Nagpur District Central Co-op. Bank Ltd
[Citation -2017-LL-0701-2]
| Citation | 2017-LL-0701-2 |
|---|---|
| Appellant Name | Commissioner of Income-tax-II, Nagpur |
| Respondent Name | Nagpur District Central Co-op. Bank Ltd. |
| Court | HIGH COURT OF BOMBAY AT NAGPUR |
| Relevant Act | Income-tax |
| Date of Order | 01/07/2017 |
| Judgment | View Judgment |
| Keyword Tags | bad and doubtful debts • co-operative bank |
| Bot Summary: | This appeal under Section 260-A of the Income Tax Act, 1961 challenges the order dated 23.06.2009 passed by the Income Tax Appellate Tribunal. This appeal was admitted on 16.07.2015 on the following substantial question of law:- Whether in the facts and circumstances of the case, the Tribunal was justified in holding that if the assessee's claim of bad or doubtful debt is rejected, even then, the income from banking business would be increased, which would be eligible for deduction under Section 80P of the Act, ignoring the decision of the Hon'ble Supreme Court reported in 168 Taxman 224 and the fact that the total income of the assessee was Nil 3. From the record it is clear that the loss determined by the Assessing Officer for the subject assessment year in the case of respondent-assessee was Rs.19.84 crores. In revision, the Commissioner of Income Tax on examination of the issue added that the provision for bad and doubtful debts is Rs.2.10 crores, consequently reducing the loss from Rs.19.84 crores to Rs.17.74 crores. The Tribunal in its impugned order has taken a view that even after the amount of Rs.2.10 crores towards bad and doubtful debts is added back, on account of rejection of the same, yet the respondent- assessee would not be chargeable to any tax, as the Co-operative Bank is exempt under Section 80P of the Act. It is the case of the revenue that deduction under section 80P of the Act cannot be extended in case of an assessee whose total income as assessed is nil or loss. It is an admitted position between the parties that an identical issue was for consideration before the Apex Court in Synco Industries Ltd.vs. Assessing Officer, Income Tax Mumbai 168 Taxman 224 wherein it has been held that deduction under Chapter VI-A of the Act would not be available where the gross total income of the assessee is nil or loss. |