Pandyan Grama Bank, Virudhunagar V. ACIT, Virudhunagar

CO 41/CHNY/2014

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 9825 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 25-08-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 25-08-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 17-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIJAYARAGHAVAN; SAROJ KUMAR PARIDA S MR
• Assessee Lawyers: A SASI KUMAR
• Section: 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI . . . , ! ' , % & BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A. NOS.572 & 595/MDS/2014 & CROSS OBJECTION NOS.40 & 41/MDS/20 14 (IN ITA NOS.572 & 595/MDS/2014 ( / ASSESSMENT YEARS: 2008-09 & 2010-11) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I,KATCHERI ROAD, VIRUDHUNAGAR-626 001. VS M/S. PANDYAN GRAMA BANK COLLECTORATE COMPLEX, VIRUDHUNAGAR. PAN: AAAAP0895P ( /APPELLANT) (RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : MR. A. SASI KUMAR, JCIT /RESPONDENT BY : MR. VIJAYARAGHAVAN & MR.SAROJ KUMAR PARIDA, ADVOCATES MR. P.GURUSAMY, ITP / DATE OF HEARING : 25 TH AUGUST, 2014 /DATE OF PRONOUNCEMENT : 25 TH AUGUST, 2014 / O R D E R PER CHALLA NAGENDRA PRASAD , JM: THESE TWO APPEALS ARE FILED BY THE REVENUE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)- I, MADURAI DATED 23.12.2013 FOR THE ASSESSMENT YEARS 2008- 09 & 2010-11 RESPECTIVELY. THE ONLY GRIEVANCE OF T HE REVENUE IN BOTH THESE APPEALS IS THAT COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN ALLOWING DEDUCTION UN DER SECTION 80P(2)(A)(I) OF THE ACT. 2 ITA NO.572 & 595/MDS/2014 & C.O.NOS.40 & 41/MDS/2014 2. COUNSEL FOR THE ASSESSEE SUBMITS THAT THIS ISSU E HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE IN ITS OWN C ASE FOR THE EARLIER ASSESSMENT YEARS BY THE CO-ORDINATE BEN CH OF THIS TRIBUNAL IN ITA NOS.1088, 1091 & 1092/MDS/2012 BY ORDER DATED 23.08.2012. THE COUNSEL SUBMITS THAT THE CLAI M FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT WAS ALLOWED BY THIS TRIBUNAL FOR THE ASSESSMENT YEARS 2007-08 T O 2009-10 AND HE RELIES ON THE SAID DECISION OF THIS TRIBUNAL . INSOFAR AS THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE CONC ERNED, COUNSEL SUBMITS THAT CROSS OBJECTIONS ARE ONLY IN S UPPORT OF THE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS). 3. DEPARTMENTAL REPRESENTATIVE PLACES RELIANCE ON T HE ORDERS OF THE ASSESSING OFFICER. 4. HEARD BOTH SIDES. WE HAVE PERUSED THE ORDER OF T HE CO- ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN C ASE IN ITA NOS.1088, 1091 & 1092/MDS/2012 DATED 23.08.2012 A ND FIND THAT THE CLAIM OF THE ASSESSEE FOR DEDUCTION U NDER 3 ITA NO.572 & 595/MDS/2014 & C.O.NOS.40 & 41/MDS/2014 SECTION 80P(2)(A)(I) WAS ALLOWED FOR THE ASSESSMEN T YEARS 2007-08 TO 2009-10 OBSERVING AS UNDER:- 7. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORDS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS WHETHER THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT OR NOT. THE TRIBUNAL WHILE DECIDING THE ASSESSEES OWN CASE IN ITA NO. 1941/MDS/2009 DATED 13-08-2010 FOR THE ASSESSMENT YEAR 2007-08 AGAINST THE ORDER U/S 263 OF THE ACT, ON MERITS HAS HELD AS UNDER: WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL CONTENTIONS. IT IS NOT DISPUTED THAT IF THE ASSESSEE IS TO BE TREATED AS A CO- OPERATIVE SOCIETY, THEN THE DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT IS AVAILABLE TO IT. THE ONLY DISPUTE HERE IS THAT ASSESSEE BEING A REGIONAL RURAL BANK ESTABLISHED UNDER RRB ACT, 1976, WAS TO BE TREATED AS A CO-OPERATIVE BANK OR COULD BE CONSIDERED AS A CO-OPERATIVE SOCIETY. NO DOUBT, SUB- SECTION (4) OF SECTION 80P INTRODUCED BY FINANCE ACT 2006 CLEARLY TAKES A CO- OPERATIVE BANK OUT OF THE PURVIEW OF DEDUCTION AVAILABLE UNDER 80P(2)(A)(I) OF THE ACT. THUS, IF THE ASSESSEE IS A COOPERATIVE BANK, IT WOULD NOT BE ELIGIBLE FOR SUCH DEDUCTION. CONTENTION OF THE ASSESSEE IS THAT IN VIEW OF SECTIONS 22 AND 23 OF THE RRB ACT, 1976, IT WAS TO BE TREATED AS A CO- OPERATIVE SOCIETY AND THE SAID SECTIONS HAVING NOT BEEN OVERRIDDEN, IT COULD ONLY BE TREATED AS A CO-OPERATIVE SOCIETY. FURTHER, RELYING ON DEFINITION OF CO-OPERATIVE BANK AS GIVEN IN THE BANKING REGULATION ACT, 1949, ASSESSEE SUBMITS THAT IT IS NEITHER A STATE CO-OPERATIVE BANK NOR A CENTRAL COOPERATIVE BANK NOR A PRIMARY CO- OPERATIVE BANK, AND THEREFORE, NOT A CO- 4 ITA NO.572 & 595/MDS/2014 & C.O.NOS.40 & 41/MDS/2014 OPERATIVE BANK AT ALL. WHATEVER THAT MAY BE, THERE IS MUCH STRENGTH IN THE ARGUMENT OF THE ASSESSEE THAT IT IS TO BE TREATED AS COOPERATIVE SOCIETY IN VIEW OF THE PROVISIONS CONTAINED IN RRB ACT, 1976. IF SO, IT WOULD BE ELIGIBLE UNDER SECTION 80P(2)(A)(I) OF THE ACT. 8. THE TRIBUNAL WHILE DECIDING THE ISSUE GAVE A FINDING THAT THE ASSESSEE HAS TO BE TREATED AS A CO-OPERATIVE SOCIETY IN VIEW OF THE PROVISIONS CONTAINED IN REGIONAL RURAL BANKS ACT, 1976. IF SO, IT WOULD BE ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. IN VIEW OF THE SPECIFIC FINDING GIVEN BY THE TRIBUNAL IN THE ASSESSEES OWN CASE, RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL, THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED. IN THE CIRCUMSTANCES, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 5. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THI S TRIBUNAL, WE ALLOW DEDUCTION UNDER SECTION 80P(2)(A )(I) OF THE ACT CLAIMED BY THE ASSESSEE FOR THESE TWO ASSESSME NT YEARS ALSO. THE IMPUGNED ORDERS OF THE COMMISSIONER OF I NCOME TAX (APPEALS) ARE SUSTAINED AND THE GROUNDS RAISED BY THE REVENUE ARE REJECTED. 6. SINCE WE UPHOLD THE ORDERS OF COMMISSIONER OF IN COME TAX (APPEALS), THE CROSS OBJECTIONS FILED BY THE A SSESSEE BECOME INFRUCTUOUS AND THE SAME ARE DISMISSED ACCOR DINGLY. 5 ITA NO.572 & 595/MDS/2014 & C.O.NOS.40 & 41/MDS/2014 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A ND THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 25 TH DAY OF AUGUST, 2014 AT CHENNAI. SD/- SD/- ( DR. O.K. NARAYANAN ) ( CHALLA NAGENDRA PRASAD ) ( . . . ) ( & () ) ,- /VICE-PRESIDENT ( . / JUDICIAL MEMBER ( /CHENNAI, / /DATED, 25 TH AUGUST, 2014. SOMU 12 32 /COPY TO: 1. ASSESSEE 2. ASSESSING OFFICER 3. 4 () /CIT(A) 4. 4 /CIT 5. 2 7 /DR 6. /GF.