The Assistant Commissioner of Income Tax, Circle-2 (1), Panaji., Panaji V. The Mapusa Urban Co-op. Bank of Goa Ltd., Goa

ITA 13/PAN/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2114 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 09-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK RATKAL LD
• Assessee Lawyers: CHINMAY S KAMAT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI NARENDRA S. SAINI , HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER ITA NO. 13 / P AN /201 6 : (ASST. Y R : 2011 - 1 2 ) ASST. COMMISSIONER OF INCOME TAX CIRCLE 2(1), PANAJI, GOA. ( APPELLANT) VS. THE MAPUSA URBAN CO - OP BANK OF GOA LTD, NANDADEEP, MAPUSA, BARDEZ - GOA PAN: AAAAT4671K (RESPONDENT) APPELLANT BY : SHRI ABHISHEK RATKAL, LD. DR. RESPONDENT BY : SHRI CHINMAY S. KAMAT, CA. D ATE OF HEARING : 1 9 / 0 4 /201 6 DATE OF ORDER : 1 9 / 0 4 /201 6 O R D E R PER GEORGE MATHAN , J.M : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE L D. CIT( A), PANAJI - 1, IN ITA NO. 17 / PNJ / 14 - 1 5 DATED 1 9 . 11 .201 5 FOR THE ASSESSMENT YEAR 20 11 - 1 2 . 2. SHRI ABHISHEK RATKAL , LD. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI CHINMAY S. KAMAT , CA. REPRESENTED ON BEHALF OF THE ASSESSEE . 3. AT THE TIME OF THE HEARING IT WAS FAIRLY AGREED BY BOTH THE SIDES THAT THE ISSUES IN THIS APPEAL BEING IN RESPECT OF THE DEDUCTION OF TAX U/S 194A ON THE INTEREST PAID TO ITS ME MBER S WHO ARE CO - OPERATIVE SOCIETIES BY A CO - OPERATIVE 2 ITA NO.13/PAN/2016 (ASS T. YR : 2011 - 12) BANK WAS SQUARELY COVERED BY THE DECISION OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF BELGAUM DIS TRICT CENTRAL COOPERATIVE BANK LTD IN ITA NOS. 312 TO 315/PNJ/2014 DATED 16/06/2015, WHEREIN IT HAS BEEN HELD AS FOLLOWS : - 10. HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL CONTENTIONS. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE DECISIONS RELIED UPON BY THE RIVAL PARTIES AND THE CIRCULAR S OF THE CBDT BROUGHT TO OUR NOTICE. 11. FIRSTLY, THE ASSESSING OFFICER AND THE LD. CIT(A) HAVE HEAVILY RELIED UPON THE DECISION OF THE TRIBUNAL PANAJI BENCH IN THE CASE OF BAILHONGAL URBAN CO. BANK LTD. (SUPRA), WHEREIN THE TRIBUNAL HAS HELD THAT CIRCUL AR NO.9 OF 2002 DATED 11/09/2002 ISSUED BY THE CBDT HAS BEEN QUASHED AND SET ASIDE BY THE HON'BLE HIGH COURT OF BOMBAY IN THE CASE OF JALGAON DISTRICT CO. BANK (SUPRA). THEREFORE, ASSESSEES RELIANCE ON THE SAID CASE AND THE CIRCULAR IS FOUND TO BE ILL - FO UNDED. THE TRIBUNAL DECIDED THE APPEAL IN FAVOUR OF THE REVENUE AND AGAINST THE ASSESSEE. WITH DUE RESPECT TO THE SAID DECISION OF THE TRIBUNAL, WE HAVE TO SAY THE OBSERVATIONS MADE BY THE TRIBUNAL ARE ILL - FOUNDED BECAUSE SUBSEQUENT TO THE DECISION OF T HE HON'BLE BOMBAY HIGH COURT IN THE CASE OF JALGAON DISTRICT CO. BANK (SUPRA) AN INFORMATION WAS REQUIRED FROM THE CBDT UNDER THE RIGHT TO INFORMATION ACT, 2005. THE INFORMATION REQUIRED AND THE REPLY OF THE BOARD READS AS UNDER : - RTI MATTER BY SPEED POST F .NO.385/4/2014 - IT(B) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES. ***** NEW DELHI, THE 24 TH APRIL, 2014. TO, SHRI. PRAVEEN KUMAR HIREMAN ADVOCATE, BHARAT PLAZA, GROUND FLOOR 44/1, A&B, FAIRFIELD LAYOUT RACE COURSE ROAD BANGALORE 5660001. SUBJECT : - INFORMATION SOUGHT UNDER RTI ACT, 2005 - REG. SIR, KINDL Y REFER TO YOUR APPLICATION DATED 08.04.2014 RECEIVED IN THIS SECTION ON 21.04.2014 FROM RTI - CELL VIDE THEIR FTS NO.66452/2014 - RTI - CELL DATED 15.04.2014. 3 ITA NO.13/PAN/2016 (ASS T. YR : 2011 - 12) THE REQUIRED INFORMATION IS FURNISHED AS BELOW : INFORMATION REQUIRED REPLY WHETHER THE INSTRUCTIO N OF THE BOARD CONTAINED IN CIR C U LAR NO.9 OF 2002 DATED 11.02.2009 (257 ITR (ST) 36), HAVE BEEN WITHDRAWN OR NOT. THE INSTRUCTION OF THE BOARD CONTAINED IN THE SAID CIRCULAR HAD NOT BEEN WITHDRAWN. IF YOU ARE NOT SATISFIED WITH THE REPLY YOU MAY FILE AN APPEAL WITH THE FIRST APPELLATE AUTHORITY I.E. DIRECTOR (BUDGET) CBDT. DEPARTMENT OF REVENUE NORTH BLOCK NEW DELHI. WITHIN THE PRESCRIBED TIME. YOURS FAITHFULLY (SANDEEP SINGH) CPIO/U.S - IT(BUDGET) THU S, WITH THIS CLARIFICATION, IT IS CLEAR THAT THE CIRCULAR HAS NOT BEEN WITHDRAWN. MOREOVER, A PERUSAL OF THE DECISION OF THE HON'BLE HIGH COURT OF BOMBAY IN T HE CASE OF JALGAON DISTRICT CO. BANK (SUPRA) SHOWS THAT THE HON'BLE HIGH COURT HAS HELD THAT THE IMPUGNED NOTIFICATION ISSUED BY THE CBDT WHICH IS IN THE FORM OF A CLARIFICATION WITH REGARD TO THE RIGHTS AND PRIVILEGES OF A DULY REGISTERED MEMBER AND NOMINAL MEMBER IS OUTSIDE THE SCOPE OF SEC. 119 OF THE ACT. THE HON'BLE HIGH COURT FURTHER HELD THAT THE CBDT CANNOT ISSUE A CIRCULAR U/S. 119 OF THE ACT WHICH WOULD OVERRIDE OR RETRACT FROM THE PROVISIONS OF INCOME - TAX ACT, 1961. THUS, THE OBSERVATIONS OF THE HON'BLE HIGH COURT WERE MORE TOWARDS THE CLARIFICATION REGARDING MEMBER AND NOMINAL MEMBER. CONSIDERING ALL THE FACTS IN TOTALITY IN THE LIGHT OF THE MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL 2015 (SUPRA) AND THE CLARIFICATION BY THE BOARD THAT THE CIRCULAR HAS NOT BEEN WITHDRAWN, MAKES IT AMPLE CLEAR THAT THE IMPUGNED PROVISIONS R ELATING TO THE LIABILITY OF TDS WOULD COME WITH EFFECT FROM 01/06/2015, WE, THEREFORE, SET ASIDE THE FINDINGS OF THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITIONS MADE IN THE ORDER U/S.201(1) & 201(1A) OF THE ACT. 12. IN T HE RESULT, ALL THESE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. 4 ITA NO.13/PAN/2016 (ASS T. YR : 2011 - 12) 4. AS IT IS NOTICED THAT THE ISSUE IN THIS APPEAL ARE SQUARELY COVERED BY THE ORDER OF THE CO - ORDINATE BENCH OF THIS TRIBUNAL REFERRED TO (SUPRA), RESPECT FUL LY FOLLOWING THE DECISION OF THIS TRIBUNAL THE FINDINGS OF THE LD.CIT(A) STANDS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 9 . 04 .201 6 . SD/ - (NARENDRA S. SAINI) ACCOUNTANT MEMBER SD/ - (GEORGE MATHAN) JUDICIAL MEMBER PLACE : PANAJI - GOA DATED : 19/04/2016 *A* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT CONCERNED (4) CIT(A) CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER ASSISTANT REGISTRAR ITAT, PANAJI BENCH, PANAJI