M/s O.F.Board Co-Operative Credit Society Ltd., Kolkata V. I.T.O.,Ward-35(1), Kolkata

ITA 1277/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7409 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 27-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: PRABIR KUMAR SEN
• Section: 40A(3); 40(a)(ia); 80P; 250

Judgement Text

ITA NO. 1277/KOL/2019 ASSESSMENT YEAR: 2014-2015 M/S. O.F. BOA RD COOPERATIVE CREDIT SOCIETY LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B(SMC) BENCH, KOLKATA BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 1277/KOL/2019 ASSESSMENT YEAR: 2014-2015 M/S. O.F. BOARD COOPERATIVE CREDIT SOCIETY LIMITED, .........................APPELLANT 10A, AYUDH BHAWAN, SHAHID KHUDIRAM BOSE ROAD, EXPLANADE, KOLKATA-700001 [PAN:AAAAO0989R] -VS.- INCOME TAX OFFICER,.............................,.. .............................................RESPON DENT WARD-35(1), KOLKATA, SHANTIPALLY, AAYA KAR BHAWAN POORVA, 7 TH FLOOR, KOLKATA-700107 APPEARANCES BY: SHRI PRABIR KUMAR SEN, ADVOCATE, FOR THE APPELLANT SMT. RANU BISWAS, CIT, SR. D.R., FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : JANUARY 27, 2020 DATE OF PRONOUNCING THE ORDER : JANUARY 31, 2020 O R D E R THE ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15, ARISES AGAINST THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-10, KO LKATAS ORDER DATED 28.02.2019 PASSED IN THE CASE NO. 283/CIT(A)-10/W, 35(1)/14-15/2016- 17/KOL, INVOLVING PROCEEDINGS UNDER SECTION 250 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES FROM THE CASE RECORDS THAT THE ASS ESSEES ONLY GRIEVANCE PER ITS AVERMENTS IS THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN MAKING DISALLOWANCES UNDER S ECTION 40(A)(IA) AND SECTION 40A(3) ON ACCOUNT OF SALARY AND OTHER EXPEN SES INVOLVING SUMS OF RS.26,02,310/- AND RS.21,475/- RESPECTIVELY. ITA NO. 1277/KOL/2019 ASSESSMENT YEAR: 2014-2015 M/S. O.F. BOA RD COOPERATIVE CREDIT SOCIETY LIMITED 2 3. THERE IS NO DISPUTE BETWEEN THE PARTIES THAT THE ASSESSEE HAS BEEN ASSESSED TO TAX AS A COOPERATIVE CREDIT SOCIETY AND ENTITLED FOR DEDUCTION UNDER SECTION 80P. IN THIS FACTUAL BACKGROUND, I NO TICE DURING THE COURSE OF HEARING THAT THE GOVERNMENT OF INDIA, MINISTRY O F FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF DIRECT TAXES HAS ISSUE D A CIRCULAR BEARING NO. 37/2016 DATED 02.11.2016 MAKING IT CLEAR THAT A LL DEDUCTIONS ADMISSIBLE IN CHAPTER VI-A ALSO INCLUDE VARIOUS DIS ALLOWANCES/ADDITIONS MADE UNDER SECTIONS 32, 40(A)(IA), 40A(3), 43B, ETC . SINCE RELATED TO BUSINESS ACTIVITY. I, THEREFORE, DECLINE THE REVENU ES ARGUMENTS SUPPORTING THE IMPUGNED DISALLOWANCES AND DIRECT TH E ASSESSING OFFICER TO TREAT THE FOREGOING TWO HEADS UNDER SALARY AND OTHER EXPENSES AS ELIGIBLE FOR DEDUCTION UNDER SECTION 80P AS PER LAW . 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 31, 2 020. SD/- (SATBEER SINGH GODARA) JUDICIAL MEMBER KOLKATA, THE 31 ST DAY OF JANUARY, 2020 COPIES TO : (1) M/S. O.F. BOARD COOPERATIVE CREDIT SOCIETY LIMITE D, 10A, AYUDH BHAWAN, SHAHID KHUDIRAM BOSE ROAD, EXPLANADE, KOLKATA-700001 (2) INCOME TAX OFFICER, WARD-35(1), KOLKATA, SHANTIPALLY, AAYA KAR BHAWAN POORVA, 7 TH FLOOR, KOLKATA-700107 (3) COMMISSIONER OF INCOME TAX (APPEALS) -10, KOL KATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.