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IV. Useful Case Laws:
1. CIT Vs. Gulshan Mercantile Urban Co-Operative Bank Ltd., IT Appeal No. 429 of 2009, Dated: 07-11-2012, High Court of Allahabad
Deduction u/s. 80P available on Interest earned on deposits of non-statutory liquid ratio funds.
The question
as to whether the business is derived from or attributable to SLR or
non-SLR funds would not make any difference for the purposes of
qualifying the interest earned by the cooperative bank under Section
80P(2)(a)(i) as the deposits of surplus idle money available from
working capital, including reserves, excess collection of interest tax
and other incomes are all attributable to the business of banking. The
interest from such deposits cannot be said to be beyond the legitimate
business activities of the bank.
For the
aforesaid reasons, we do not find that the Income Tax Appellate Tribunal
committed any error in arriving at findings that the interest are not
deposits of non-SLR funds and the cooperative bank will qualify for
exemption under Section 80P(2)(a)(i) of the Act.
(Please click here for judgment)
2. M/s Synopsys International Vs. Dy. CIT, ITA No. 549/Bang/2011, Date of Pronouncement: 10.12.2012, ITAT- Bangalore
Sec. 147 Supply of recorded reasons after passing reassessment order renders the reopening void
The
undisputable facts on record establish beyond doubt that the reasons
recorded for initiation of proceedings under section 147/148 of the Act
were never furnished to the assessee by the Assessing Officer before
completion of the assessment proceedings. Recorded reasons furnished
to the assessee by the learned CIT(A) after assessment proceedings does
not achieve any purpose or mitigate the illegality of the action of
depriving the assessee its right to raise objections against the
initiation of proceedings under section 147/148 of the Act. In this view
of the matter, we hold that the order of assessment passed under
section 143(3) rws 148 of the Act, without furnishing the recorded
reasons for initiation of proceedings under section 147/148 of the Act
to the assessee within reasonable time and prior to the completion of
the assessment proceedings, renders this order of assessment invalid and
unsustainable in law.
(Please click here for judgment)
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