Assistant Commissioner Of Income Tax,Circle-1, Patna v. Bihar Rajya Sahkari Bhumi Vikas Bank Ltd., Budh Marg, Patna

07. 07.12.2009 IN THE HIGH COURT OF JUDICATURE AT PATNA MA No.528 of 2004 1.COMMISSIONER OF INCOME TAX (1), PATNA 2.ASSISTANT COMMISSIONER OF INCOME TAX,CIRCLE-1, PATNA. …ASSESSING OFFICER/APPELLANT Versus BIHAR RAJYA SAHKARI BHUMI VIKAS BANK LTD., BUDH MARG, PATNA. … ASSESSEE/RESPONDENT with MA No.529 of 2004 1.COMMISSIONER OF INCOME TAX(1), PATNA. 2.ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, PATNA. ….ASSESSING OFFICER/APPELANT. Versus BIHAR RAJYA SAHKARI BHUMI VIKAS BANK LTD. BUDH MARG, PATNA. … ASSESSEE/RESPONDENT ------ Heard Mrs. Archana Sinha for the appellants, and Mr. Manoranjan Choubey for the respondents. Both the appeals under section 260A of the Income Tax Act 1961, are directed against the order dated 02.07.2004, passed by the Income Tax Appellate Tribunal, Patna Bench, Patna, whereby the appeals preferred by the respondent herein have been allowed for the assessment years 1996-1997 and 1997-1998, passed in ITA Nos. 382/Pat/2003 and 383/Pat/2003. It has been held in the impugned order that the respondent (assessee) is entitled to the benefit of exemption from income tax with respect to the interest earned by it for the statutory investment, and rental from its immovable property. It appears to us that the issue raised in the present appeal is covered by the judgment of the Supreme Court in Commissioner of Income Tax Vs. Karnataka State Co-operative Apex Bank, reported in (2001) Vol. 251 ITR 194 hr (SC). This Court had the occasion to apply the same in its judgment dated 9[th] September, 2009, passed in Misc. Appeal No.225 of 2002 (Bihar State Co-operative Bank Ltd. Vs. Commissioner of Income Tax), which related to the assessment year 1996-1997. We are also convinced that the present appeals are covered by the judgment of the Supreme Court in the case of Commissioner of Income Tax Vs. Karnataka State Co-operative Apex Bank (Supra), and of this Court in Bihar State Co-operative Bank Ltd.(Supra). In that view of the matter, both the appeals are dismissed. In the circumstances of the case, there shall be no order as to costs. ( S. K. Katriar ) ( Kishore K. Mandal )