SAI PRERNA CO OP SOCIETY LTD, MUMBAI V. ITO WD 12(1)(2), MUMBAI

ITA 1308/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0534 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 23-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Assessee Lawyers: VIJAY RAO S TAMBE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NO.1308 & 1310/M/2017 ASSESSMENT YEARS: 2009-10 & 2010-11 M/S. SAI PRERNA CO - OP. SOCIETY LTD., 317, PURAN ASHA, NARSHI NATHA STREET, MASJID BUNDER (E), MUMBAI-400 009 PAN: AADTS5638M VS. ITO WARD 12 ( 1)( 2 ), AAYAKAR BHAVAN, M.K. MARG, MUMBAI 400 020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VIJAY RAO S. TAMBE, A.R. REVENUE BY : MS. N. HEMALATHA, SR. D.R. DATE OF HEARING : 11.12.2017 DATE OF PRONOUNCEMENT : 30.01.2018 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN PREFERRED BY THE ASSE SSEE AGAINST THE COMMON ORDER DATED 10.11.2016 OF THE COMMISSION ER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A )] RELEVANT TO ASSESSMENT YEARS 2009-10 & 2010-11. SINCE THE FACT S AND ISSUES INVOLVED THEREIN ARE IDENTICAL IN NATURE, HENCE THE SAME ARE TAKEN TOGETHER FOR DISPOSAL BY THIS COMMON ORDER. 2. THE SHORT FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE IS A CO-OPERATIVE CREDIT SOCIETY WHOS E MAIN FUNCTION IS TO ADVANCE LOANS TO THE MEMBERS. THE C LAIM OF THE SOCIETY IS THAT THE FUNDS ARE GENERATED ON ACCOUNT OF SHARES OF ITA NO.1308 & 1310/M/2017 M/S. SAI PRERNA CO-OP. SOCIETY LTD. 2 MEMBERS AND DEPOSITS RECEIVED FROM THEM. THE ASSES SEE IS ALSO ENTITLED TO BORROW LOAN FROM DISTRICT CENTRAL CO-OP ERATIVE BANK LTD. THE MAIN SOURCE OF RECEIPT OF SOCIETYS INTEREST RE CEIVED ON ACCOUNT LOANS ADVANCED TO MEMBERS. THE PROFITS ARE DISTRIB UTED AMONGST THE MEMBERS IN THE FORM OF DIVIDEND. THE ASSESSEE HAS ALSO COLLECTED THE ELECTRICITY BILL ON BEHALF OF THE MAHARASHTRA S TATE ELECTRICITY DISTRIBUTION COMPANY LTD. THE ASSESSEE ALSO RECEI VED SERVICE CHARGES FOR COLLECTING THE ELECTRICITY BILLS BUT TH E EXPENDITURE INCURRED FOR COLLECTING THE FEES WAS NOT ALLOWED B Y THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO). 3. DURING THE COURSE OF HEARING, THE LD. A.R. HAS F ILED THE COPY OF ORIGINAL PROFIT & LOSS ACCOUNT ALONG WITH THE BALAN CE SHEET ON 31.03.09. PROFIT & LOSS ACCOUNT WAS LIABLE FOR DED UCTION UNDER SECTION 80P. THE LD. A.R. SUBMITTED BEFORE ME THE RECONCILIATION OF ASSESSMENT ORDER AND PRESENT WORKING, XEROX COPY OF NOTICE OF DEMAND AND ASSESSMENT ORDER. SIMILARLY IN ASSESSME NT YEAR 2010-11 SIMILAR DOCUMENT IS SUBMITTED BEFORE ME. 4. HAVING HEARD BOTH THE PARTIES, I AM OF THE VIEW THAT ASSESSEE IS ENTITLED FOR 80P DEDUCTION ONLY ON THE ACTIVITIES W HICH ARE LIABLE UNDER 80P. AT THE SAME TIME, THE ASSESSEE IS ALSO ENTITLED FOR THE SERVICE CHARGES RECOVERED BUT ASSESSEE ALSO ENTITLE D FOR THE EXPENDITURE FOR COLLECTING THE SAME. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIRPLAY, I RESTORE THIS ISSUE BACK TO THE FILE OF AO AND THE ITA NO.1308 & 1310/M/2017 M/S. SAI PRERNA CO-OP. SOCIETY LTD. 3 AO IS DIRECTED TO ALLOW THE CLAIM OF 80P WHICH IS S UBMITTED BEFORE ME AFTER VERIFICATION OF THE SAME. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.01.2018. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 30.01.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.