M/s.Cherthala Government Servants Co-op Bank Ltd, Alappuzha V. The ITO, Alappuzha

ITA 109/COCH/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8618 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 29-02-2016
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: RAJAN N UNNI
• Keywords: Principle of natural justice
• Section: 143(3); 68

Judgement Text

ITA NO.109/COCH/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI B P JAIN, AM & GEORGE GEORGE.K, JM ITA NO.109/COCH/2016 (ASST YEAR : 2012-13) M/S. CHERTHALA GOVERNMENT SERVANTS CO-OPERATIVE BANK LTD., NO.235, CHERTHALA P.O., ALAPPUZHA-688 524. THE I.T.O., WARD-5, ALAPPUZHA. ( ASSESSEE APPELLANT) VS (REVENUE -RESPONDENT) PAN NO. AAAJT 0857C ASSESSEE BY SHRI RAJAN N. UNNI, CA REVENUE BY SHRI K P GOPAKUMAR, SR DR DATE OF HEARING 23/05/2016 DATE OF PRONOUNCEMENT 24/05/2016 ORDER PER B.P. JAIN, AM: THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), KOTTAYAM DATED 02/02/2016. THE RELE VANT ASSESSMENT YEAR IS 2012-13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ORDER OF ASSESSING OFFICER BY DISMISSING THE APPEAL FILED BY THE APPELLANT. 2. THE LEARNED CIT(A) ERRED IN CONFIRMING THE ADDIT ION OF RS.13,32,48,422 MADE BY THE ASSESSING OFFICER U/S. 68 OF THE IT ACT 1961. 3. THE LEARNED CIT(A) FAILED TO APPRECIATE THE FACT THAT THE IMPUGNED AMOUNT OF RS.13,32,48,422 WAS THE TOTAL AMOUNT OF DEPOSITS RE CEIVED BY THE APPELLANT WHICH IS A ITA NO.109/COCH/2016 2 GOVERNMENT SERVANTS CO-OPERATIVE CREDIT SOCIETY AND THAT ALL THE DEPOSITS WERE RECEIVED ONLY FROM ITS MEMBERS. 4. THE LEARNED CIT(A) FAILED TO ADJUDICATE ON THE C LAIM OF DEDUCTION U/S. 80P(2) MADE BY THE APPELLANT, IN THE APPEAL FILED BEFORE CIT(A). 5. ANY OTHER GROUND WHICH WILL BE RAISED DURING TH E APPELLANT PROCEEDINGS WITH THE KIND PERMISSION OF HON. TRIBUNAL. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THA T THE ASSESSEE IS A PRIMARY CREDIT CO-OPERATIVE SOCIETY REGISTERED UNDER KERALA CO-OPE RATIVE SOCIETIES ACT, 1969. FOR THE RELEVANT ASSESSMENT YEAR, THE RETUR N OF INCOME WAS FILED ON 29/09/2012 DECLARING A TOTAL INCOME OF RS.29,94,960 /-. THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT VIDE ORDER DATED 2 6/03/2015. IN THE ASSESSMENT COMPLETED, THE ASSESSING OFFICER HAD MAD E AN ADDITION OF RS.13,32,48,422/- U/S. 68 OF THE ACT. THIS AMOUNT REPRESENTS VARIOUS DEPOSITS ACCEPTED BY THE ASSESSEE DURING THE RELEVANT ASSESS MENT YEAR . THE ASSESSING OFFICER ALSO DENIED THE CLAIM OF DEDUCTION U/S. 80P (2) OF THE ACT. 4. AGGRIEVED, BY THE ORDER OF THE ASSESSING OFF ICER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY . THE FIRST APPELLATE AUTHORITY OMITTED TO ADJUDICATE THE ASSESSEES GROUND WITH RE FERENCE TO DEDUCTION U/S. 80P(2) OF THE ACT. WITH REFERENCE TO THE ADDITION MADE U/S. 68 OF THE ACT, THE VIEW TAKEN BY THE ASSESSING OFFICER WAS CONFIRMED B Y THE LD. CIT(A). THE RELEVANT FINDING OF THE LD. CIT(A) READS AS FOLLOWS :- 8. DURING THE COURSE APPELLATE PROCEEDINGS ALSO THE SAME DETAILS WERE ASKED FOR AND ASSESSEE PREFERRED NOT TO GIVE ANY DETAILS FOR VERI FICATION. THERE IS NO POSSIBILITY OF VERIFYING ITA NO.109/COCH/2016 3 THE GENUINENESS OF ORDER, THERE IS A DIRECTION FROM THE HONBLE HIGH COURT TO DISPOSE OF THE CASE WITHIN THE PRESCRIBED TIME. HENCE, I AM CONST RAINED TO FINALIZE THIS ORDER ON WHATEVER DETAILS AVAILABLE IN THE RECORD. THE ASSESSEE HAS N OT PROVED THE GENUINENESS OF THE DEPOSITS. HENCE THE ORDER OF THE ASSESSING OFFICER IS HEREBY UPHELD. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A REPUTED CO- OPERATIVE SOCIETY IN WHICH THE MEMBERSHIP IS TOTALL Y RESTRICTED TO GOVERNMENT SERVANTS(BOTH SERVING AS WELL AS RETIRED). IT IS S UBMITTED THAT THE DEPOSITS ARE RECEIVED ONLY FROM ITS MEMBERS. IT WAS STATED THAT THE TOTAL MEMBERS ARE ABOUT 9000 MEMBERS AND IT IS DIFFICULT TO PRODUCE THE LED GER COPY OF THE DEPOSIT ACCOUNT WHICH IS MORE THAN 35,000 PAGES. THE LD. A R SUBMITTED THAT THE ACTION OF THE ASSESSING OFFICER IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY AND REQUESTED FOR PROVIDING ONE MORE OPPORTUNITY OF PLA CING THE NECESSARY DETAILS BEFORE THE ASSESSING OFFICER. 6. THE LD. DR WAS DULY HEARD. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE MATERIAL ON RECORD. THE ASSESSING OFFICER HAS MADE AN ADDITION OF RS.13 ,32,48,422/- U/S. 68 OF THE ACT. THE ASSESSEE IS A CO-OPERATIVE SOCIETY HAVING GOVERNMENT SERVANTS AS ITS MEMBERS. IT IS THE PLEA OF THE ASSESSEE THAT THE D EPOSITS ARE RECEIVED ONLY FROM ITS MEMBERS. THE DETAILS OF THE DEPOSITS FOR THE R ELEVANT ASSESSMENT YEAR AMOUNTING TO RS.13,32,48,422/- WERE NOT FURNISHED BEFORE THE ASSESSING OFFICER OR BEFORE THE LD. CIT(A). IT IS THE PLEA OF THE ASSESSEE THAT IT IS DIFFICULT TO ITA NO.109/COCH/2016 4 PRODUCE THE LEDGER COPY OF THE DEPOSITS WHICH RUNS INTO 35000 PAGES. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CD OF T HE SERIES OF DEPOSITS ALONG WITH THE COPY OF THE ACCOUNTS OF EACH OF THE DEPOSI TS COULD BE FURNISHED AND THE ASSESSING OFFICER CAN TEST CHECK ON RANDOM BASI S THE AUTHENTICITY OF THESE DEPOSITS. WE ARE OF THE VIEW THAT THIS SUBMISSION MADE BY THE LD. AR IS JUSTIFIED. ACCORDINGLY, WE REMIT THE MATTER TO THE ASSESSING O FFICER AND DIRECT THE ASSESSEE TO FURNISH THE NECESSARY DETAILS OF THE DE POSITORS ALONGWITH THE COPY OF THE ACCOUNTS IN THE COMPACT DISC. THE ASSESSING OF FICER SHALL EXAMINE THE DETAILS FILED BY THE ASSESSEE-SOCIETY AND SHALL TAK E APPROPRIATE DECISION IN THE MATTER AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEAR ING TO THE ASSESSEE. THE ASSESSING OFFICER SHALL ALSO CONSIDER THE PLEA OF T HE ASSESSEE THAT IT IS ENTITLED TO THE BENEFIT OF DEDUCTION U/S. 80P(2) OF THE ACT, BE ING AN CO-OPERATIVE CREDIT SOCIETY REGISTERED UNDER KERALA CO-OPERATIVE SOCIET IES ACT, 1969. IT IS ORDERED ACCORDINGLY. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 4-05-2016. SD/- SD /- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : COCHIN DATED: 24 TH MAY, 2016 GJ ITA NO.109/COCH/2016 5 COPY TO: 1. M/S. CHERTHALA GOVERNMENT SERVANTS CO-OPERATIVE BANK LTD., NO.235, CHERTHALA P.O., ALAPPUZHA-688 524. 2. THE INCOME TAX OFFICER, WARD-5, ALAPPUZHA. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS),KOTTAYAM . 4. THE COMMISSIONER OF INCOME-TAX, KOTTAYAM. 5. THE DR/ITAT, COCHIN BENCH. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN ITA NO.109/COCH/2016 6 1. DATE OF DICTATION : 23/05/2016 2.DATE ON WHICH THE TYPED DRAFT IS PLACED 23/05/2016 BEFORE THE DICTATING MEMBER OTHER MEMBER: 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . PS/PS: 24/05/2016 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER : 24/05/2016 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. PS/PS : 24/05/2016 6. DATE ON WHICH THE FILE GOES TO BENCH CLERK: 24/ 05/2016 7. DATE ON WHICH THE FILE GOES TO HEAD CLERK: 8. DATE ON WHICH THE FILE GOES TO ASSISTANT REGISTR AR 9. DATE OF DISPATCH OF THE ORDER: