DCIT, Bangalore V. M/s ITI Employees Union Co-Op Credit Society, Bangalore

ITA 1207/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5379 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 08-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H L SOUMYA ACHARADDL
• Keywords: Benefit of exemption
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH - SMC C BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER I.T.A. NO. 1207 /BANG/201 6 (ASSESSMENT YEAR : 200 9 - 10 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 4(2)(1), BANGALORE. VS. M/S. ITI EMPLOYEES UNION CO - OP. CREDIT SOCIETY, NORTH AVENUE, DOORVANINAGAR, BANGALORE - 560 016 PAN AAAAI 03334 APPELLANT RESPONDENT. APPELLANT BY : SHRI H.L. SOUMYA ACHAR,ADDL.CIT (D.R) RESPONDENT BY : SHRI SANDEEP C, C.A. DATE OF H EARING : 12.04.2017. DATE OF P RONOUNCEMENT : 19 .0 5 . 201 7 . O R D E R PER SHRI VIJAY P AL RAO, J. M. : THIS APPEAL BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER DT.18.03.2016 OF COMMISSIONER OF INCOME TAX (APPEALS) - 4, BANGALORE FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 2 ITA NO. 1207 /BANG/ 2016 3. AT THE OUTSET IT WAS POINTED OUT THAT THIS APPEAL HAS ARISEN FROM THE ASSES SMENT ORDER PASSED IN PURSUANT TO THE REVISION ORDER UNDER SECTION 263 OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') DT.27.3.2014. THE CIT (APPEALS) HAS DELETED THE ADDITION / DISALLOWANCE MADE BY THE ASSESSING OFFICER BY NOTING THE FACT THA T THE TRIB UNAL HAS ALREADY QUASHED REVISION ORDER UNDER SECTION 263 DT.27.3.2014. I T IS NOTED THAT THE TRIBUNAL VIDE ORDER DT.14.8.2015 IN ITA NO.659/BANG /2014 HAS QUASHED THE REVISION ORDER PASSED UNDER SECTION 263 IN PARS 7 & 8 AS UNDER : 3 ITA NO. 1207 /BANG/ 2016 7. IN THE RECENT JU DGMENT DT.5.22014 OF THE HON'BLE HIGH COURT OF KARNATAKA IN CIT V. SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA BAGALKOT IN ITA NO.5006/2013 DT.5.2.2014, THE HON'BLE JURISIDICTIONAL HIGH COURT TOOK THE VIEW THAT WHEN THE STATUS OF THE ASSESSEE I S A CO - OPERATIVE SOCIETY AND NOT A CO - OPERATIVE BANK, THE ORDER PASSED BY THE ASSESSING OFFICER EXTENDING THE BENEFIT OF EXEMPTION FROM PAYMENT OF TAX 80P(2)(A)(I) OF THE ACT IS CORRECT AND SUCH AN ORDER IS NOT ERRONEOUS AND THEREFORE, JURISDICTION UNDER S ECTION 263 OF THE ACT CANNOT BE INVOKED. 8. IN VIEW OF THE AFORESAID DECISION, WE ARE OF THE VIEW THAT THE ORDER UNDER SECTION 263 DENYING THE DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT HOLDING THAT ASSESSEE AS A CO - OPERATIVE BANK CANNOT BE SUSTAINED AND THE SAME IS QUASHED. SINCE THE REVISION ORDER PASSED UNDER SECTION 263 HAS ALREADY BEEN QUASHED BY THE TRIBUNAL THEREFORE THE ASSESSMENT ORDER PASSED IN PURSUANT TO THE REVISION ORDER WILL NOT SURVIVE. ACCORDINGLY, I DO NOT FIND ANY ERROR OR ILLEGA LITY IN THE IMPUGNED ORDER OF THE CIT (APPEALS). 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19TH MAY, 201 7 . SD/ - (VIJAY PAL RAO) JUDICIAL MEMBER BANGALORE, DT. 19 .05. 2017. *RED DY GP