The Ferozepur Central Co-op. Bank Ltd. v. Asstt. Commissioner of Income-tax, Range, (III), Ferozepur
[Citation -2019-LL-0827-21]
| Citation | 2019-LL-0827-21 |
|---|---|
| Appellant Name | The Ferozepur Central Co-op. Bank Ltd. |
| Respondent Name | Asstt. Commissioner of Income-tax, Range, (III), Ferozepur |
| Court | ITAT-Amritsar |
| Relevant Act | Income-tax |
| Date of Order | 27/08/2019 |
| Assessment Year | 2012-13 |
| Judgment | View Judgment |
| Keyword Tags | mercantile system of accounting • profit and loss account • interest on borrowings • interest expenditure • interest received • interest income • interest paid • claim of deduction |
| Bot Summary: | The AO asked the assessee to offer its explanations to the above said audit observations. The assessee submitted that its income for financial year 2010-11 was assessed in excess by the above said amount of Rs.2.30 crores, since the above said expenses was not claimed as deduction. Since the assessee is following mercantile system of accounting, the AO did not accept the explanations of the assessee and accordingly disallowed the above said amount of Rs.2.30 crores, apparently by holding that the same does not pertain to the year under consideration. There is no dispute with regard to the fact that the assessee has committed mistakes in the immediately preceding financial year by not accounting interest expenditure of Rs.1.80 crores and also by accounting interest income in excess by Rs.50.00 lakhs. The assessee has corrected the above said mistakes during the year under consideration by debiting the interest expenditure account to the tune of Rs.230 lakhs. Since the appeal under consideration pertains to the assessment year 2012-13 and claim of assessee pertains to AY 2011-12, we are of the view that the assessee should move appropriate petition before the tax authorities in this regard. Since there is merit in the prayer of the assessee, in the interest of natural justice and also considering the fact that the assessee is a co- operative bank, we suggest that the tax authorities may consider the petition of the assessee in a liberal manner, if the assessee moves appropriate petition before them. |