GOWRIPATNAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LIMITED,GOWRIPATNAM V. ITO, WARD-1, TADEPALLIGUDEM

SA 21/VIZ/2025

AI Insights

The case involves M/s. Gowripatnam Primary Agricultural Cooperative Credit Society Limited, which filed Stay Applications against the Income Tax Officer, Ward-1, Tadepalligudem, concerning tax demands for the Assessment Years 2015-16, 2016-17, and 2018-19. The Society argued that their income was exempt under section 80P of the Income Tax Act, 1961, a claim that was denied upon reopening of their cases under section 147. Additionally, for A.Y. 2016-17, additions were made under section 69A due to unexplained cash deposits, which were not contested for the other years. The Tribunal considered the substantial payments already made by the assessee and the nature of their operations as a cooperative credit society in deciding to grant a conditional stay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775582 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 12-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 01-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Assessee Lawyers: SVRC SEKHAR DHULIPALA
• Keywords: Recovery proceedings; Application of stay; Co-operative Credit Society
• Section: 147

Judgement Text

" आयकर अपीलीय अधिकरण IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH AT HYDERABAD (Through Virtual Hearing) श्री विजय पाल राि, उपाध् यक्ष एिं श्री मिुसूदन सािडिया, लेखा सदस् य क े समक्ष । BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER S.A.Nos.19 to 21/VIZ/2025 (In ITA Nos.432 to 434/VIZ/2025) (निर्धारण वर्ा/Assessment Years:2015-16, 2016-17 & 2018-19) M/s. Gowripatnam Primary Agricultural Cooperative Credit Society Limited, Gowripatnam. PAN : AABAG2827P Vs. Income Tax Officer, Ward-1, Tadepalligudem. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri SVRC Sekhar Dhulipala, C.A. (Hybrid) रधजस् व द्वधरध/Revenue by: Dr. Aparna Villuri, SR-DR सुिवधई की तधरीख/Date of hearing: 12/09/2025 घोर्णध की तधरीख/Pronouncement: 12/09/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : These three Stay Applications (“S.As.”) have been filed by M/s.Gowripatnam Primary Agricultural Co-operative Credit Society Limited (“the assessee”) for Assessment Years 2015–16, 2016–17 Printed from counselvise.com S.A.Nos.19 to 21/VIZ/2025 2 and 2018–19. The total demand raised for the above years is Rs.4,65,642/-, Rs.1,98,37,992/- and Rs.1,59,324/- respectively. Out of the said demand, the assessee has already paid Rs.83,030/-, Rs.19,84,800/- and Rs.80,850/- respectively. 2. The Learned Authorised Representative (“Ld. AR”) submitted that the assessee is a Primary Agricultural Cooperative Credit Society formed for the benefit of farmers. It provides credit facilities to its members, supplies fertilisers, pesticides and also assists in marketing the agricultural produce. He submitted that the assessee had not filed its return of income under the bona fide belief that its income was exempt under section 80P of the Income Tax Act, 1961 (“the Act”). However, the cases of the assessee for all these years were reopened under section 147 of the Act and the income, claimed as exempt, was brought to tax. The Ld. AR further submitted that for Assessment Year 2016–17, in addition to denial of exemption under section 80P(2) of the Act, the Ld. AO also made additions under section 69A of the Act on account of cash deposited in the bank. However, in respect of similar cash deposits in Assessment Years Printed from counselvise.com S.A.Nos.19 to 21/VIZ/2025 3 2015–16 and 2018–19, the Ld. AO has accepted the position and no such addition was made. He therefore contended that the assessee has a very good case on merits. He further pointed out that the assessee has already paid 10% of the tax demand and prayed for stay of recovery proceedings till disposal of the appeals. 3. Per contra, the Learned Departmental Representative (“Ld. DR”) opposed the stay petitions and supported the action of the Revenue authorities, contending that the assessee has not made out a case for grant of absolute stay. 4. We have considered the rival submissions and perused the material available on record. It is evident that the assessee is a cooperative credit society engaged in providing agricultural credit and allied services to its members. The exemption claimed under section 80P of the Act has been denied for all the three years and additions under section 69A of the Act has been made in A.Y. 2016- 17, leading to the impugned demands. We also note that the assessee has already paid substantial amounts towards the Printed from counselvise.com S.A.Nos.19 to 21/VIZ/2025 4 outstanding demand. Considering the facts and circumstances of the case, we are of the view that it would be just and proper to grant conditional stay. Accordingly, we direct the assessee to pay 20% of the outstanding total demand on or before 30.09.2025. Subject to this condition, the balance demand shall remain stayed for a period of three months from the date of this order or till the disposal of the appeals, whichever is earlier. The assessee is also directed not to seek adjournment without just cause and to cooperate for early disposal. 5. In the result, all the three S.As. are allowed on the above terms. Order pronounced in the open Court on 12th Sept., 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad. Dated: 12.09.2025. * Reddy gp Printed from counselvise.com S.A.Nos.19 to 21/VIZ/2025 5 Copy of the Order forwarded to : 1. M/s. Gowripatnam Primary Agricultural Cooperative Credit Society Limited, 1-284, Gowripatnam, Devarapalli-534313, Andhra Pradesh. 2. The ITO, Ward-1, Tadepalligudem. 3. Pr.CIT, Visakhapatnam. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, Printed from counselvise.com "