Deputy Commissioner of Income Tax, Bangalore V. Sri. Biluru Gurubasava Sahakari Pattin Sangh Niyamit, Bagalkot

ITA 1407/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5501 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 09-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K BIJU JT BENGALURU
• Assessee Lawyers: S RAMASUBRAMANIAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ITA NOS.1407 & 1408/BANG/2016 ASSESSMENT YEARS : 2012-13 & 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(2), BANGALORE. VS. SRI BILURU GURUBASAVA SAHAKARI PATTIN SANGH NIYAMIT, NO.112/5, NARA BUILDING, ADAT BAZAR, BAGALKOT 587 101. PAN: AABAS 7016A APPELLANT RESPONDENT APPELLANT BY : SHRI M.K. BIJU, JT.CIT(DR)(ITAT-3), BENGALURU RESPONDENT BY : SHRI S. RAMASUBRAMANIAN, CA DATE OF HEARING : 18.04.2017 DATE OF PRONOUNCEMENT : 21.04.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THESE ARE APPEALS PREFERRED BY THE REVENUE AGAI NST THE ORDER OF CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1. WHETHER IN LAW AND ON FACTS THE CIT(A) WAS JUS TIFIED IN NOT APPRECIATING THE FACT THAT THE ACTIVITY OF THE ASSESSEE WAS COVERED BY EXPLANATION TO SECTION80P(4) OF THE INCOME-TAX ACT, 1961? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) WAS JUSTIFIED IN LAW IN HOLD ING THAT ITA NOS. 1407 & 1408/BANG/2016 PAGE 2 OF 3 THE ASSESSEE-SOCIETY IS ENTITLED TO DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE INCOME-TAX ACT DESPITE THE FACT THAT THE ASSESSEE-SOCIETY IS MAINLY INVOLVED IN EXT ENDING CREDIT FACILITIES TO ITS MEMBERS WHICH IS IN THE NATURE OF BANKING ACTIVITY, FALLING WITHIN THE AMBIT OF CLAUS E (VIIA) OF SUBSECTION 24 OF SECTION 2 OF THE ACT, INTRODUCED W EF 01/04/2017? 3. ANY OTHER GROUND THAT MAY BE TAKEN UP AT THE TIM E OF HEARING. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE INVITED OUR ATTENTION THAT THE CIT(APPEALS) HAS DECIDED THE APPEAL IN FAVOUR OF THE ASSESSEE FOLLOWING ITS ORDER AS WELL AS THE ORDER O F TRIBUNAL IN WHICH IT WAS HELD THAT ASSESSEE IS ENTITLED FOR DEDUCTION U/S. 8 0P(2)(A)(I) OF THE ACT. IT WAS FURTHER CONTENDED THAT THE VIEW TAKEN BY THE TR IBUNAL WAS ALSO APPROVED BY THE HON'BLE JURISDICTIONAL HIGH COURT. COPY OF THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT REPORTED AT 3 69 ITR 86 IN ASSESSEES CASE IS PLACED ON RECORD. 3. THE LD. DR SIMPLY RELIED UPON THE ORDER OF AO. 4. HAVING CAREFULLY EXAMINED THE ORDER OF LOWER AUT HORITIES AND THE JUDGMENTS REFERRED TO BY THE PARTIES, WE ARE OF THE VIEW THAT THE IMPUGNED ISSUE IS SQUARELY COVERED BY THE EARLIER ORDER OF T HE TRIBUNAL AND THE HONBLE HIGH COURT. SINCE THE CIT(APPEALS) HAS DE CIDED THE ISSUE FOLLOWING ITS EARLIER ORDER AND ORDER OF THE TRIBUN AL, WE FIND NO INFIRMITY THEREIN. ACCORDINGLY, WE CONFIRM HIS ORDER. ITA NOS. 1407 & 1408/BANG/2016 PAGE 3 OF 3 5. IN THE RESULT, BOTH THE APPEALS OF REVENUE STAND DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF APRIL, 2017. SD/- SD/- ( S. JAYARAMAN ) (SUNIL KUMAR YA DAV ) ACCOUNTANT MEMBER JUDIC IAL MEMBER BANGALORE, DATED, THE 21 ST APRIL, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.