Mamurpur Co-operative Thrift and Credit Society ltd., New Delhi V. ACIT, Circle-38(1), New Delhi

ITA 1255/DEL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3501 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 15-02-2019
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 1255/DEL/2019 ASSESSMENT YEAR: 2013-14 MAMURPUR COOPERATIVE THRIFT VS. ACIT, CIRLCE 38(1 ), AND CREDIT SOCEITY LTD., NEW DELHI 1529/1, MAMURPUR, NARELA, DELHI 110 040 (PAN: AABAT6103B) (ASSESSEE) (RESPONDENT ASSESSEE BY : SHRI R.K. GAUR, CA REVENUE BY : SHRI PRADEEP SINGH GAUTAM, SR. DR. ORDER THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE IMPU GNED ORDER DATED 20.11.2018 PASSED BY THE LD. CIT(A)-13, NEW DELHI O N THE FOLLOWING GROUNDS:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, LD. AUTHORITIES BELOW HAVE ERRED IN DISALLOWING THE DEDUCTION OF INTEREST EARNED ON DEPOSITS U/S. 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 AMOUNTING TO RS. 16,34,897/-. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, LD. AUTHORITIES BELOW HAVE DISALLOWED THE INTEREST EARNED FROM COOPERATIVE BANK IN CONTRAVENTION OF THE SPECI FIC PROVISION CONTAINED IN SECTION 80P(2)(D) ON THE INC OME TAX ACT, 1961. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE ORDER OF THE LD. AO IS BAD AND IS AGAINST THE TENETS OF NATURAL JUSTICE LIABLE TO BE QUASHED. 4. THE APPELLANT CRAVES TO ADD, ALTER, MODIFY OR DELET E ANY GROUND OF APPEAL DURING THE PENDENCY OF APPEAL. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE ISSUES IN DISPUTE ON IDENTICAL FACTS AND CIRCUMSTANCES OF THE CASE HAVE ALREADY BEEN ADJUDICATED AND DECIDED IN FAVOUR OF ANOTHER ASSES SEE BY THE ITAT, D BENCH, NEW DELHI VIDE ITS ORDER DATED 19.12.2014 PASSED IN THE CASE OF ACIT, CIRCLE 38(1), NEW DELHI VS. M/S JAWALA COOPERATIVE THRIFT & CREDIT SOCIETY LTD., NEW 2 DELHI. THEREFORE, HE REQUESTED TO FOLLOW THE SAID DECISION AND ADDITION IN DISPUTE MAY BE DELETED BY ALLOWING THE APPEAL FILED BY THE ASSESSEE. 3. ON THE CONTRARY, LD. DR RELIED UPON THE ORDER S PASSED BY THE REVENUE AUTHORITIES. 4. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE CORDS, THE IMPUGNED ORDER AS WELL AS THE CASE LAW RELIED BY THE LD. C OUNSEL FOR THE ASSESSEE. I FIND THAT THE ITAT, D BENCH, NEW DELHI VIDE ITS ORDER DATED 19.12.2014 PASSED IN THE CASE OF ACIT, CIRCLE 38(1), NEW DELHI VS. M/S J AWALA COOPERATIVE THRIFT & CREDIT SOCIETY LTD., NEW DELHI HAS ADJUDICATED THE SIMILAR AND IDENTICAL ISSUE AND DECIDED THE SAME IN FAVOUR OF THE ASSESSEE BY HOLDING AS UNDER:- 9. WE HAVE HEARD RIVAL PARTIES AND HAVE GONE THRO UGH THE MATERIAL PLACED ON RECORD. WE FIND THAT TOTAL INC OME EARNED BY THE ASSESSEE INCLUDED INCOME ON FIXED DEPOSITS P LACED WITH BOMBAY MERCANTILE BANK, INTEREST INCOME FROM A SCHE DULED BANK AND DIVIDEND INCOME FROM DELHI COOPERATIVE BAN K. FROM THE CERTIFICATE AS PLACED AT PAGE BOOK PAGE 30 , WE FIND THAT BOMBAY MERCANTILE COOPERATIVE BANK IS A COOPER ATIVE SOCIETY REGISTERED UNDER MAHARASTARA COOPERATIVE SO CIETIES LTD. AND WE FURTHER FIND THAT THE SAID SOCIETY HAS BEEN ASSESSED U/S. 143(3) AS A COOPERATIVE SOCIETY AND I TS INCOME WAS ALLOWED TO THE EXEMPT U/S. 80P(2)(I) AS HELD BY MUMBAI TRIBUNAL IN ITA NO. 4128 AND 4129 VIDE ITS ORDER DA TED 30.11.2005, FOR ASSESSMENT YEAR 1990-91 AND 1991-92 AND FURTHER BY MUMBAI TRIBUNAL VIDE ORDER DATED 07.9.20 11 IN ITA NO. 5292 FOR ASSESSMENT YEAR 1997-98. THEREFORE, IT IS HELD THAT FIXED DEPOSITS PLACED WITH BOMBAY MERCANTILE B ANK FALLS WITHIN THE EXEMPTION GRANTED BY SECTION 80O(2)(D) O F THE ACT. THE ASSESSEE WAS ALSO ELIGIBLE UNDER THE PROVISIONS OF SECTION 80O(2)A(I) AS THE FUNDS PLACED BY ASSESSEE IN THE F ORM OF FIXED DEPOSITS CAN BE SAID TO BE KEPT FOR THE PURPO SE OF BUSINESS OF THE ASSESSEE AS THE ASSESSEE HAD AVAILE D CREDIT FACILITIES ALSO AGAINST SUCH FIXED DEPOSITS WHICH W ERE AGAIN 3 USED FOR THE PURPOSE OF BUSINESS OF ASSESSEE. MOREO VER, UNDER SIMILAR CIRCUMSTANCES, CHANDIGARH BENCH IN ITA NO. 996/2009 AS NOTED BY LD. CIT(A) HAS DECIDED IN FAVOUR OF AS SESSEE. THE DIVIDEND INCOME IS EXEMPT FOR ALL PERSONS INCLU DING ASSESSEE. THE INTEREST INCOME FROM BANK AMOUNTING TO RS. 18,190/- IS THOUGH NOT EXEMPT U/S. 80(P)(2)(D) BUT IS EXEMPT U/S. 80P(2)(I) OF THE ACT. THE CASE LAW OF TOTGARS COOPERATIVE SOCIETY WAS RIGHTLY DISTINGUISHED BY LD. CIT(A). T HEREFORE, KEEPING IN VIEW ALL FACTS AND CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A). 10. IN VIEW OF ABOVE, APPEAL FILED BY THE REVENUE I S DISMISSED. 4.1 AFTER PERUSING THE AFORESAID FINDING OF THE TRI BUNAL, I AM OF THE CONSIDERED VIEW THAT THE ISSUES IN DISPUTE ARE SQUA RELY COVERED BY THE AFORESAID DECISION. THEREFORE, RESPECTFULLY FOLLO WING THE AFORESAID PRECEDENT, THE ADDITION IN DISPUTE IS HEREBY DELETED AND THE A PPEAL FILED BY THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED ON 02/12/2019. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE 02/12/2019 SRB COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES