Pr. Commissioner Of Income Tax, Kota v. M/S. Kota Sahakari Bhoomi Vikas Bank, Plot

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 17/2018 Pr. Commissioner Of Income Tax, Kota ----Appellant Versus M/s. Kota Sahakari Bhoomi Vikas Bank, Plot No. 3, BehindIncome Tax Office, Rawatbhata Road, Kota 324009 ----Respondent For Appellant(s) : Ms. Parinitoo JainFor Respondent(s): Mr. Jai Kumar Yadav HON'BLE MR. JUSTICE K.S.JHAVERI HON'BLE MR. JUSTICE VIJAY KUMAR VYAS 15/05/2018 Judgment The matter was adjourned time and again. Last time also on8[th] May, 2018, following order was passed:- “Counsel for the respondent is not present. As a last chance, matter to come up on 15[th] May, 2018.” Even today, counsel for the respondent has not chosen to appear. Hence, we have taken up the matter. By way of this appeal, the appellant has challenged thejudgment and order of the Tribunal whereby the Tribunal hasallowed the appeal preferred by the assessee. This Court while admitting the matter framed the followingsubstantial question of law:- “Whether the Tribunal was legally justified in notadjudicating the issue of allowability of deductionfor provision for interest on NPA u/s 36(1)(viia) ofthe Act.?” The contention before the Tribunal regarding allowing benefitu/s 80P(2)(a)(i) is already upheld by us and the issue was decidedwhile admitting the matter. However, while deciding the matter,regarding the question framed, the Tribunal has observed asunder:- “The alternative ground of the assessee that incase it is not allowed u/s 80P then it should beallowed u/s 36(1)(viia) of the Act which do notneed any adjudication. Hence, the appeal of theassessee is allowed.” In our considered opinion, even if the submission of originalassessee is taken that he is entitled for deduction u/s 80(P) or36(1)(viia) since he has already been granted benefit u/s 80(P) isnot entitled under Section 36(1)(viia). In that view of the matter, the Tribunal has seriouslycommitted an error in allowing the appeal. Even on the alternativeground without assigning any reasons, the issue has beenanswered in favour of the assessee therefore, the issue is decidedin favour of the department against the assessee. Hence, the appeal stands allowed. (VIJAY KUMAR VYAS),J(K.S.JHAVERI),J A.Sharma/170