Appeal Details
Counselvise Citation
[2021] 108 COUNSELVISE.COM (IT) 4407 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 5 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Cross Objection
Pronouncement Date
24-05-2021
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
DB-A
Assessment Year
2014-2015
Appeal Filed On
20-12-2019
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NOS. 1670, 1671 & 1672/HYD/2019 & C.O.NOS.36, 37 & 38/HYD/2019 (ARISING IN ITA NOS.1670/H/19, 1671/H/19 & 1672/H/19 ) ASSESSMENT YEARS: 2012-13, 2013-14 & 2014-15 INCOME TAX OFFICER, WARD-2, KARIMNAGAR VS M/S.THE MULKANOOR COOPERATIVE RURAL BANK AND MARKETING SOCIETY LIMITED, KARIMNAGAR [PAN: AAAAT6454A] (APPELLANT) (RESPONDENT/CROSS - OBJECTOR) FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR FOR ASSESSEE : SHRI A.V.RAGHURAM, AR DATE OF HEARING : 22-04-2021 DATE OF PRONOUNCEMENT : 24-05-2021 O R D E R PER S.S.GODARA, J.M. : THESE THREE REVENUES APPEALS ITA NOS.1670, 1671 & 1672/HYD/2019 AND ASSESSEES CROSS OBJECTIONS THERE IN, C.O.NOS.36, 37 & 38/HYD/2019, ARISE FROM THE CIT(A)- RAJAMAHENDRAVARAMS ORDER(S) DATED 28-08-2019 IN FIR ST & 29-08-2019 IN LATTER TWIN ASSESSMENT YEARS PASSED IN C ASE NOS.10054, 10095 & 10065/2018-19/CIT(A)/RJY, IN PROCEEDINGS U/S.143(3) R.W.S.263, U/S.143(3) IN LATT ER TWO ITA NOS. 1670, 1671 & 1672/HYD/2019 C.O.NOS. 36, 37 & 38/HYD/2019 :- 2 -: ASSESSMENT YEARS OF THE INCOME TAX ACT, 1961 [IN SHOR T, THE ACT]; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. THE REVENUES IDENTICAL SOLE SUBSTANTIVE GRIEVANCE RAISED IN THESE APPEALS PLEADS THAT THE CIT(A) HAS ERRED IN LA W AND ON FACTS IN HOLDING THE ASSESSEE ENTITLED FOR SECTION 80P DEDUCTION QUA ITS INTEREST INCOME DERIVED FROM PARKING OF SURPLUS F UNDS IN NATIONALISED BANKS TO THE TUNE OF RS.3,15,92,690/-, RS.2,02,45,577/- AND RS.3,61,89,324/-; ASSESSMENT Y EAR- WISE; RESPECTIVELY. 3. LEARNED DEPARTMENTAL REPRESENTATIVE TOOK US TO THE ASSESSING OFFICERS IDENTICAL DISCUSSION QUA ALL THE RELEVANT FACTS THAT THE IMPUGNED INTEREST INCOME HAD NOT BEEN DE RIVED FROM ITS CORE ACTIVITY INVOLVING ITS MEMBERS AND THEREF ORE, THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING IT A S ELIGIBLE FOR SECTION 80P DEDUCTION. 4. WE FIND NO SUBSTANCE IN THE REVENUES ARGUMENT IN V IEW OF THE FACT THAT THE HONBLE JURISDICTIONAL HIGH COURTS D ECISION IN THE VAVVERU CO-OPERATIVE RURAL BANK LTD. VS. CIT (2017) [396 ITR 371] (AP) AND IN ITTA NO.669/2016, DT.12-04 -2017 HAS SETTLED THE VERY ISSUE IN ASSESSEES FAVOUR AND A GAINST THE DEPARTMENT THEREBY GRANTING SECTION 80P DEDUCTION TO A CO-OPERATIVE SOCIETY QUA INTEREST INCOME DERIVED FROM PARKING OF SURPLUS FUNDS IN NATIONALISED BANKS AS WELL. WE THUS UPHOLD THE CIT(A)S IDENTICAL DETAILED REASONING IN AL L THESE THREE REVENUES APPEALS, ITA NOS. 1670/H/19, 1671/H/ 19 AND 1672/H/19. THE SAME STANDS REJECTED THEREFORE. ITA NOS. 1670, 1671 & 1672/HYD/2019 C.O.NOS. 36, 37 & 38/HYD/2019 :- 3 -: 5. NEXT COMES THE ASSESSEES CROSS OBJECTION NOS.36 TO 38/H/2019, SEEKING TO REVERSE BOTH THE LOWER AUTHORITI ES ACTION DENYING SECTION 80P DEDUCTION ON PARKING OF SUR PLUS FUNDS IN PRIVATE BANKS AND THE INTEREST RECEIVED FROM THE LIC DEPOSITS INVOLVING VARYING SUMS. 5.1. LEARNED AUTHORISED REPRESENTATIVE MADE A VERY STR ONG ENDEAVOUR TO PINPOINT THE FACT THAT THE BANKING REGULATI ON LAW DOES NOT DISTINGUISH BETWEEN A PUBLIC SECTOR AND PRIV ATE SECTOR/OTHER BANKS. HE ALSO SOUGHT TO ADOPT THE REASONIN G IN HONBLE JURISDICTIONAL HIGH COURTS DECISION HEREINA BOVE GRANTING SECTION 80P RELIEF TO THE ASSESSEES DEPOSITS MADE IN PUBLIC SECTOR BANKS. 5.2. WE FIND NO MERIT IN THE ASSESSEES STAND SINCE TH EIR LORDSHIPS SAID DECISION APPLIES IN AN INSTANCE OF SE CTION 80P DEDUCTION ON INTEREST INCOME DERIVED FROM NATIONALISED BANKS ONLY. WE THUS AFFIRM THE CIT(A)S REASONING DENYING THE IMPUGNED RELIEF TO THE ASSESSEE. THESE THREE CROSS-OBJ ECTIONS OF THE ASSESSEE ARE DISMISSED THEREFORE. 6. TO SUM-UP, ALL THE THREE REVENUES APPEALS ITA NOS.1670, 1671 & 1672/HYD/2019 AS WELL AS THE ASSESS EES CROSS-OBJECTIONS THEREIN C.O.NOS.36, 37 & 38/HYD/2019 ARE DISMISSED IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH MAY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 24-05-2021 TNMM ITA NOS. 1670, 1671 & 1672/HYD/2019 C.O.NOS. 36, 37 & 38/HYD/2019 :- 4 -: COPY TO : 1.THE MULKANOOR CO-OPERATIVE RURAL BANK AND MARKETI NG SOCIETY LTD., 7-12, MULKANOOR VILLAGE, BHEEMADEVARA PALLI MANDAL, KARIMNAGAR. 2.THE INCOME TAX OFFICER, WARD-2, KARIMNAGAR. 3.CIT(APPEALS)-RAJAMAHENDRAVARAM. 4.PR.CIT-II, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.
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