Income-tax Officer, Ward-1(1), Hubli V. M/s Sri Gajanana Co.op. credit Society Ltd, Hubli

ITA 1123/BANG/2014

• Counselvise Citation: 112321114 RSA 2014
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 01-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K SRIHARI
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P.BOAZ, ACCOUNTANT MEMBER ITA NO. 1 1 2 3 / BANG/20 14 (ASSESSMENT YEAR: 20 1 0 - 1 1 ) INCOME - TAX OFFICER, WARD 1(1), HUBLI. APPELLAN T VS. SRI GAJANANA CO - OPERATIVE SOCIETY LTD., WALVEKAR GALLI, M G MARKET, HUBLI. RESPONDENT PAN: AABTS6499J APPELLANT BY: SHRI P.K.SRIHARI, ADDL.CIT(DR). RESPONDENT BY: NONE DATE OF HEARING : 2 3 /12/2014 . DATE OF PRONOUNCEMENT : 23 /12/2014 . O R D E R PER SMT.P.MADHAVI DEVI, JM: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) , HUBLI, DATED 30/05/2014 FOR THE ASSESSMENT YEAR 20 1 0 - 11 HOLDING THAT THE PROVISIONS OF SEC.80P(4) OF THE INCOME - TAX ACT , 1961[HEREINAFTER REFERRED TO AS 'THE ACT'] ARE NOT APPLICABLE TO THE ASSESSEE SINCE IT IS A CO - OPERATIVE SOCIETY AND NOT A CO - OPERATIVE BANK. ITA NO . 112 3 /BANG/2014 S RI GAUAJANA URBAN CO - OP. SOCIETY LTD. PAGE 2 OF 3 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CO - OPERATIVE SOCIETY REGISTERED UNDER THE CO - OPER ATIVE SOCIETIES ACT, 1997 WHICH IS CARRYING ON THE BUSINESS OF BANKING I.E. ACCEPTING DEPOSITS AND PROVIDING FINANCIAL ASSISTANCE TO MEMBERS OF THE SOCIETY. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE HAS CLAIMED DEDUCTION U/S 80P(2)(A)(I) OF THE ACT CLAIMING IT TO BE A CO - OPERATIVE SOCIETY. THE AO, HOWEVER, OBSERVED THAT THE ASSESSEE IS CARRYING ON BANKING BUSINESS AND THEREFORE THE PROVISIONS OF SEC.80P(4) ARE APPLICABLE. HE, ACCORDINGL Y, HELD THAT THE ASSESSEE IS NOT ENTITLED TO THE DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) WHO ALLOWED THE SAME BY FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. SHRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA N I YAMITHA IN ITA NO.5006/2013 DATED 05/02/2014 AND THE DECISION OF THE HON BLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SURAT DINKAR SAHAKARI SANGH LTD., IN APPEAL NO.1150 OF 2013 WHEREIN IT WAS HE LD THAT THE PROVISIONS OF SEC.80P(4) ARE NOT APPLICABLE TO A CO - OPERATIVE SOCIETY. ITA NO . 112 3 /BANG/2014 S RI GAUAJANA URBAN CO - OP. SOCIETY LTD. PAGE 3 OF 3 4. AGGRIEVED BY THE RELIEF GIVEN BY THE CIT(A), THE REVENUE IS IN APPEAL BEFORE US. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE AO. 5. HAVING REGARD TO THE CONTENTIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE OF THE APPLICABILITY OF SEC.80P(4) TO A CO - OPERATIVE SOCIETY IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE JUR ISDICTIONAL HIGH COURT IN THE CASE WHICH HAS BEEN FOLLOWED BY THE CIT(A). THEREFORE, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A) ON THIS ISSUE. 6. IN THE RESULT, THE REVENUE S APPEAL IS DISMISSED. PRONOUNCED I N THE OPEN COURT ON 23 RD OF DECEMBER, 2014. SD/ - SD/ - (JASON P BOAZ) (SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU COPY TO: 1. APPELLANT 2. R ESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE.