M/s Karkala Taluk Agricultural Produce Co-operative Marketing Society Ltd , Karkala V. The Income Tax Officer Ward-3 , Udupi

ITA 1049/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5933 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABDUL HAKEEM M
• Assessee Lawyers: G S PRASHANTH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-B BENCH : BANGALORE BEFORESHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 1049 / BANG/201 8 ASSESSMENT YEAR : 20 1 4 - 15 M/S. KARKALA TALUK AGRICULTURAL PRODUCE CO- OPERATIVE MARKETING SOCIETY LTD., D.NO., 309-A/W-A, MANGALORE ROAD, KARKALA. PAN: AAAAK1129K VS. THE INCOME TAX OFFICER, WARD 3, UDUPI. APPELLANT RESPONDENT APPELLANT BY : SHRI G.S. PRASHANTH, CA RESPONDENT BY : SHRI ABDUL HAKEEM .M, JCIT (DR) DATE OF HEARING : 2 5 . 0 4 .2018 DATE OF PRONOUNCEMENT : 04 . 0 5 .201 8 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT(A)-10, BANGALORE DATED 12.02.2018 FOR ASSES SMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE ORDERS OF THE AUTHORITIES BELOW IN SO FAR AS THEY ARE AGAINST THE APPELLANT ARE OPPOSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED CIT[A] IS NOT JUSTIFIED IN UPHOLDING THE DISALLOWANCE OF DEDUCTION CLAIMED U/S.80P[2][A][I] OF THE ACT AMOUN TING TO RS.5,67,150/- IN RESPECT OF THE INTEREST EARNED BY THE APPELLANT FROM SYNDICATE BANK AND HDFC BANK UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANT'S CASE. 3. WITHOUT PREJUDICE TO THE RIGHT TO SEEK WAIVER WI TH THE HON'BLE CCIT/DG, THE APPELLANT DENIES ITSELF LIABLE TO BE C HARGED TO INTEREST U/S 234-B OF THE ACT, WHICH UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANT'S CASE DESERVES TO BE CANCELLED. ITA NO.1049/BANG/2018 PAGE 2 OF 3 4. FOR THE ABOVE AND OTHER GROUNDS THAT MAY BE URGE D AT THE TIME OF HEARING OF THE APPEAL, YOUR APPELLANT HUMBLY PRAYS THAT THE APPEAL MAY BE ALLOWED AND JUSTICE RENDERED AND THE APPELLA NT MAY BE AWARDED COSTS IN PROSECUTING THE APPEAL AND ALSO OR DER FOR THE REFUND OF THE INSTITUTION FEES AS PART OF THE COSTS. 3. IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT IN T HE IMPUGNED ORDER, THE LD. CIT(A) HAS FOLLOWED THE JUDGEMENT OF HON'BLE KARNAT AKA HIGH COURT RENDERED IN THE CASE OF PCIT AND ANOTHER VS. TOTAGARS CO-OPE RATIVE SALE SOCIETY AS REPORTED IN 395 ITR 611 (KARN) BUT IN THE FACTS OF THE PRESENT CASE, THIS JUDGEMENT IS NOT APPLICABLE AND ANOTHER JUDGEMENT O F HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUH ARDA CREDIT COOPERATIVE LTD. VS. ITO AS REPORTED IN 230 TAXMAN 309 IS APPLI CABLE. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT(A) FOR FRESH DECISION AFTER EXAMINING THE FACTS OF THE PRE SENT CASE IN THE LIGHT OF THESE TWO JUDGEMENTS OF HON'BLE KARNATAKA HIGH COURT. TH E LD. DR OF REVENUE SUPPORTED THE ORDER OF CIT(A). 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT THESE TWO JUDGEMENTS OF HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F PCIT AND ANOTHER VS. TOTAGARS CO-OPERATIVE SALE SOCIETY (SUPRA) AND TUMK UR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. VS. ITO (SUPRA) ARE ON THE SAME LINE AND THERE IS NO CONFLICT IN THESE TWO JUDGEMENTS BUT THE ULTIMATE C ONCLUSION OF THESE TWO JUDGEMENTS IS DIFFERENT BECAUSE THE FACTS ARE DIFFE RENT. IN THE CASE OF PCIT AND ANOTHER VS. TOTAGARS CO-OPERATIVE SALE SOCIETY(SUPR A), THE AMOUNT DEPOSITED IN BANK WAS OUT OF ASSESSEES LIABILITY AND NOT OUT OF ASSESSEES OWN FUNDS AND THEREFORE, THE ISSUE WAS DECIDED AGAINST THE ASSESS EE BUT IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. V S. ITO (SUPRA), IT WAS FOUND THAT THE AMOUNT DEPOSITED IN BANK WAS OUT OF ASSESSEES OWN FUNDS AND NOT OUT OF LIABILITY OF ASSESSEE AND THEREFORE, THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. 5. IN THE PRESENT CASE, THIS FACTUAL ASPECT IS NOT COMMENDED UPON BY ANY OF THE AUTHORITIES BELOW. HENCE I FEEL IT PROPER TO RESTO RE THE MATTER BACK TO THE FILE OF ITA NO.1049/BANG/2018 PAGE 3 OF 3 CIT (A) FOR FRESH DECISION AFTER EXAMINING THE FACT S OF THE PRESENT CASE IN THE LIGHT OF THESE TWO JUDGMENTS OF HON'BLE KARNATAKA H IGH COURT. I ORDER ACCORDINGLY AND THE AO IS DIRECTED THAT IF THE FACT S OF THE PRESENT CASE ARE IN LINE WITH THE FACTS IN THE CASE OF PCIT AND ANOTHER VS. TOTAGARS CO-OPERATIVE SALE SOCIETY(SUPRA), THEN THE ISSUE SHOULD BE DECID ED AGAINST THE ASSESSEE BUT IF IT IS FOUND THAT THE FACTS OF THE PRESENT CASE A RE IN LINE WITH THE FACTS IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIV E LTD. VS. ITO (SUPRA), THEN THE ISSUE SHOULD BE DECIDED IN FAVOUR OF THE A SSESSEE. NEEDLESS TO SAY, THE AO SHOULD PASS A SPEAKING AND REASONED ORDER AF TER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 04 TH MAY, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.