ITO-WARD-7(2), Nagpur V. M/S. SANTAJI YUWAK CREDIT CO. OP. SOCIETY LTD., Nagpur

ITA 12/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1579 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 07-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE

Judgement Text

1 ITA NO. 12/NAG/2014. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. (S.M.C.) I.T.A. NO.12 / NAG/2014 ASSESSMENT YEAR : 2010 - 11. THE INCOME - TAX OFFICER, SANTAJI YUWAK CREDIT WARD - 7(2), NAGPUR. VS. COOPERATIVE SOCIETY LTD., NAGPUR. PAN AABAS6833K. APPELLANT. RESPONDENT. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : SHRI VIJAY CHANDAK. DATE OF HEARING : 10 - 11 - 2015. DATE OF PRONOUNCEMENT : 17 TH NOV., 2015. O R D E R. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 21 - 1 0 - 2013 AND PERTAINS TO ASSESSMENT YEAR 2010 - 11. THE GROUNDS OF APPEAL READ AS UNDER : 1 WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(APPEALS) HAS ERRED IN ALLOWING THE DEDUCTION U/S 80P OF THE I.T. ACT, 1961 OF RS.11,86,636/ - . 2 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT(APPEALS) HAS ERRED IN IGNORING THE FACT THAT THE MAIN MOTTO OF THE ASSESSEE IS LENDING FOR ITS MEMBER, WHICH IS IN THE NATURE OF BANKING TRANSACTION AND COMES UNDER THE PURVIEW OF SECTION 80P(4) OF THE I.T. ACT, 1961? 2. I HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. A T THE OUTSET LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A C OOPERATIVE 2 ITA NO. 12/NAG/2014. CREDIT SOCIETY AND THE AO HAS DISALLOWED THE DEDUCTION U/S 80P OF THE ACT BY REFERRING TO SECTION 80P(4) OF THE I.T. ACT AND HAS ACCORDINGLY HELD THAT THE ASSESSEE I S A COOPERATIVE BANK NOT ELIGIBLE FOR DEDUCTION U/S 80P. LEARNED COUNSEL SUBMITTED THAT IT WAS NOT AT ALL THE CASE THAT THE ASSESSEE IS PROVIDING CREDIT FACILITY TO NON MEMBERS. HENCE LEARNED COUNSEL PLEADED THAT THE ISSUE IS CLEARLY COVERED IN FAVOUR OF T HE ASSESSEE BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT AND A CATENA OF TRIBUNAL DECISIONS ON SUCH FACTS. 3. UPON CAREFUL CONSIDERATION I FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE HONBLE JURISDICTIONAL HIGH COU RT DECISION AND ITAT DECISIONS. IT HAS BEEN HELD THAT AS LONG AS N O CASE HAS BEEN MADE OUT THAT THE ASSESSEE COOPERATIVE SOCIETY IS GRA NTING CREDIT TO ANY NON MEMBERS, SECTION 80P(4) CANNOT BE INVOLVED. HENCE THE ASSESSEE CANNOT BE TREATED AS COOPERATIVE BANK. ACCORDINGLY I UPHOLD THE ORDER OF LEARNED CIT(APPEALS) 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF NOV., 2015. SD/ - ( SHAMIM YAHYA) ACCOUNTANT MEMBER. NAGPUR, DATED: 17 TH NOV., 2015. 3 ITA NO. 12/NAG/2014. COPY FORWARDED TO : 1. SANTAJI YUWAK CREDIT CO - OPERATIVE SOCIETY LTD. NEAR DIWATER TANK, DOKI PURA, KATOL,, DIST. NA GPUR . 2. I.T.I. , WARD - 7(2), NAGPUR. 3. C.I.T. - II, NAGPUR. 4. C.I.T. NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR