Asst. Commissioner of Income Tax, Circle-9(1)., Hyderabad. V. The Ranga Reddy District Judicial Employees Mutually Aided Co-operative Society Limited., Hyderabad

ITA 1128/Hyd/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2374 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 04-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A BENCH: HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA. NO.1128/HYD/2017 ASSESSMENT YEAR: 2012 - 2013 ACIT, CIRCLE - 9(1), HYDERABAD. VS. THE RANGA REDDY DISTRICT JUDICIAL EMPLOYEES MUTUALLY AIDED COOPERATIVE SOCIETY LIMITED, HYDERABAD. PAN: AAATR 6558 A (APPELLANT) (RESPONDENT) FOR ASSESSEE: NONE FOR REVENUE : SMT. SUMAN MALIK, DR DATE OF HEARING : 2 7 .03.2018 DATE OF PRONOUNCEMENT : 2 7 .03.2018 ORDER PER D. MANMOHAN , VP. THIS IS AN APPEAL FILED AT THE INSTANCE OF THE REVENUE AND IT PERTAINS TO ASSESSMENT YEAR 2012 - 13. FOLLOWING GROUNDS WERE URGED BEFORE THE TRIBUNAL: - (I) THE LD. CIT(A) ERRED BOTH ON FACTS AND LAW OF THE CASE. ( II) WHETHER THE LD. CIT(A) IS CORRECT IN LAW IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT, IN VIEW OF THE CLEAR FINDING OF THE ASSESSING OFFICER THAT THE ASSESSEE HAD VIOLATED THE PROVISIONS OF A.P. MUTUALLY AIDED COO PERATIVE SOCIETY ACT, 1995. (III) WHETHER THE LD. CIT(A) IS CORRECT IN LAW IN HOLDING THAT THE SOCIETY ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT, OBSERVING THAT THE SECTION DOES NOT STIPULATE ANY CONDITION AS TO WHAT SHOULD BE THE SOURCE OF THE FU NDS AND WHAT SHOULD BE THE QUANTUM OF THE LOANS TO EACH OF THE CATEGORY OF THE MEMBERS ARE NOT SPECIFIED THEREIN. (IV) WHETHER THE LD. CIT(A) IS CORRECT IN LAW IN HOLDING THAT THE SOCIETY IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) AND 80P(2)(D) OF THE ACT, IN VIEW OF THE FACT THAT, THE ASSESSEE SOCIETY IS ACCEPTING THE LOANS, DEPOSITS FROM EVEN NON - MEMBERS FROM WHICH, IT CAN BE INFERRED THAT THE SOCIETY IS ENGAGED IN THE ACTIVITY OF BANKING AND THE DEDUCTION U/S 80P IS NOT ALLOWABLE TO THE SOCIETIES ENGAGED IN BANKING ACTIVITIES AS PER THE PROVISIONS OF SECTION 80P(4) OF THE ACT. 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. IN FACT ON THE PREVIOUS OCCASION, NOTICE WAS DIRECTED TO BE ISSUED TO THE MEMBERS OF THE SOCIETY, BUT THERE WAS NO REPRESENTATION OF M EMBERS OF SOCIETY TILL DATE. HOWEVER, HAVING REGARD TO THE FACTUAL MATRIX OF THE CASE, WE PROCEED TO DISPOSE OF THE APPEAL, EX - PARTE, QUA THE ASSESSEE. 3. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY ENGAGED IN PROVIDING CREDIT FACILITIE S TO ITS MEMBERS. THE ASSESSEE CLAIMED DEDUCTION U/S 80P OF THE ACT WHICH WAS REJECTED BY THE ASSESSING OFFICER BUT , ON AN APPEAL FILED BY THE ASSESSEE, LD. CIT(A) OBSERVED THAT IDENTICAL ISSUE WAS DECIDED BY THE ITAT IN THE ASSESSEES OWN CASE FOR THE A.Y S 2008 - 09 TO 2011 - 12 AND ACCORDINGLY A DIRECTION WAS GIVEN TO THE A.O TO COMPUTE THE DEDUCTION IN TUNE WITH THE DIRECTIONS GIVEN IN THE TRIBUNAL ORDER EARLIER. SINCE THE FACTS ARE IDENTICAL IN THIS YEAR ALSO, WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASS ED BY THE LD. CIT(A) AND THEREFORE , THE APPEAL FILED BY THE REVENUE IS DISMISSED. SD/ - SD/ - (S. RIFAUR RAHMAN) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED: 27 TH MARCH, 2018. OKK, SR.PS COPY TO 1. M/S. RANGA REDDY DISTRICT JUDICIAL EMPLOYEE MUTUALLY AIDED COOPERATIVE SOCIETY, RANGA REDDY DISTRICT COURT BUILDING COMPLEX, L.B. NAGAR, HYDERABAD 500 074. 2. ACIT, CIRCLE 9(1), R.NO.245, BLOCK - D, SECOND FLOOR, IT TOWERS, A.C. GUARDS, MASAB TANK, HYD ERABAD. 3. CIT (A) - 7, HYDERABAD. 4. PR. CIT - 7, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE