Sudha Co-operative Urban Bank Ltd., Suryapet V. Addl.CIT, Hyderabad

CO 54/HYD/2009

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 4345 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-01-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-01-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 09-12-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: NIVEDITA BISWAS

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL HYDERABAD BENCH 'B' BEFORE SHRI N.R.S.GANESAN AND SHRI CHANDRA POOJARI I.T.A.NO.1079/HYD/2009 ASSESSMENT YEAR 2006-07 ADDL. CIT, RANGE 9, HYDERABAD. .. APPELLANT VERSUS SUDHA CO-OPERATIVE URBAN BANK LTD., SURYAPET. ..RESPONDENT (PAN AAHLS0706K) APPELLANT BY : SMT. NIVEDITA BISWAS RESPONDENT BY : SHRI Y.V.BHANU NARAYANA RAO C.O.NO.54/HYD/2009 (IN I.T.A.NO.1079/HYD/2009) ASSESSMENT YEAR 2006-07 SUDHA CO-OPERATIVE URBAN BANK LTD., SURYAPET. .. CROSS OBJECTOR (PAN AAHLS0706K) VERSUS ADDL. CIT, RANGE 9, HYDERABAD. .. APPELLANT CROSS OBJECTOR BY : SHRI Y.V.BHANU NARAYANA RAO APPELLANT BY : SMT. NIVEDITA BISWAS O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER: THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDE R OF THE CIT (APPEALS) VI, HYDERABAD, DATED 11-8-2009, FOR ASST. YEAR 2006 -07. THE ASSESSEE HAS FILED THE CROSS OBJECTION AGAINST THE VERY SAME ORDER OF THE CIT (A). THEREFORE, WE HEARD THE APPEAL AND THE CROSS OBJECTION TOGETHER A ND WE DISPOSE OF THE SAME BY THIS COMMON ORDER. 2. THE ONLY ISSUE THAT ARISES FOR CONSIDERATION IN THE REVENUE'S APPEAL IS WITH REGARD TO DEDUCTION CLAIMED BY THE ASSESSEE UN DER SEC. 80P OF THE 2 INCOME-TAX ACT, 1961, IN RESPECT OF INTEREST RECEIV ED ON THE INVESTMENT MADE BY THE ASSESSEE. SHRI Y.V.BHANU NARAYANA RAO, LEARN ED REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04, THIS TRIBUNAL HAD AN OCCASION TO CONSIDER AN IDENTI CAL ISSUE. THIS TRIBUNAL, AFTER CONSIDERING VARIOUS JUDGMENTS OF HIGH COURTS AND TH E APEX COURT ON THE SUBJECT, FOUND THAT THE INTEREST INCOME EARNED ON I NVESTMENT IN FDR WITH ANDHRA PRADESH STATE FINANCIAL CORPORATION IS A PAR T OF PROFITS AND GAINS OF BANKING AND, THEREFORE, ELIGIBLE FOR DEDUCTION UNDE R SEC. 80P OF THE INCOME-TAX ACT. IN THIS CASE ALSO, THE ASSESSEE IS CLAIMING DE DUCTION UNDER SEC. 80P IN RESPECT OF THE INTEREST RECEIVED BY THE ASSESSEE ON THE DEPOSIT WITH APSFC. THEREFORE, THE ISSUE IS COVERED IN FAVOUR OF THE AS SESSEE. COMING TO THE CROSS OBJECTION, THE LEARNED REPRESENTATIVE FOR THE ASSES SEE SUBMITTED THAT THE CROSS OBJECTION IS FILED ONLY TO SUPPORT THE ORDER OF THE CIT (A). 3. SMT. NIVEDITA BISWAS, LEARNED DEPARTMENTAL REPRE SENTATIVE, FAIRLY CONCEDED THAT THE ISSUE IS COVERED BY THE EARLIER O RDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D REPRESENTATIVE FOR THE ASSESSEE AND THE LEARNED DEPARTMENTAL REPRESENTATIV E AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE THAT A RISES FOR CONSIDERATION IS DEDUCTION UNDER SEC. 80P IN RESPECT OF INTEREST REC EIVED ON THE DEPOSIT MADE WITH APSFC. AS RIGHTLY SUBMITTED BY THE LEARNED REP RESENTATIVE FOR THE ASSESSEE, THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04 IN I.T.A.NO.341/HYD/2007, BY AN ORDER DATED 11-5-2007, CONSIDERED THIS ISSUE ELABORATELY AND FOUND THAT THE INTEREST EARNED ON T HE DEPOSIT WITH APSFC IS A 3 PART OF THE PROFIT AND, THEREFORE, ELIGIBLE FOR DED UCTION UNDER SEC. 80P. IN VIEW OF THE ORDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR THE ASST. YEAR 2003- 04, IN OUR OPINION, THE ASSESSEE IS ENTITLED FOR DE DUCTION UNDER SEC. 80P. BY FOLLOWING THE EARLIER ORDER OF THIS TRIBUNAL AND FO R THE REASONS STATED THEREIN, WE UPHOLD THE ORDER OF THE CIT (A). 5. THE ASSESSEE HAS FILED THE CROSS OBJECTION ONLY TO SUPPORT THE ORDER OF THE CIT (A). NO INDEPENDENT ISSUE IS RAISED IN THE CROS S OBJECTION. THEREFORE, THE CROSS OBJECTION BECOMES INFRUCTUOUS. 6. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AN D THE CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 29-1-10. SD SD (CHANDRA POOJARI) (N.R.S.GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, 29TH JANUARY 2010. RRRAO. COPY OF THE ORDER FORWARDED TO:- 1. SUDHA CO-OPERATIVE URBAN BANK LTD., H.NO.1-1-65, OP P. MUNICIPAL OFFICE, SURYAPET, NALGONDA DISTRICT. 2. ADDL. CIT, RANGE-9, HYDERABAD. 3. CIT VI, HYDERABAD. 4. CIT (A) VI, HYDERABAD. 5. DR, ITAT, HYDERABAD.