ITO, Hyderabad V. M/s Lakshmi Srinivasa Mutually Aided Co-op.Credit Sicuety Ltd., Secunderabad

ITA 1440/HYD/2008

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82304 (ITAT-HYDERABAD)
• Duration Of Justice: 6 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-12-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 12-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV BANJWAJ
• Assessee Lawyers: S RAMA RAO
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1440/HYD/08 : ASSESSMENT YEAR 2004 - 05 INCOME TAX OFFICER, WARD 11(2), HYDERABAD V/S. M/S. LAXMI SRINIVASA MUTUALLY AIDED CO - OP CREDIT SOCIETY, HYDERABAD (PAN - AAATL 2836 R) (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI RAJEEV BANJWAJ DR RESPONDENT BY : SHRI S.RAMA RAO DATE OF HEARING 15 .0 9 .2014 DATE OF PRONOUNCEMENT 17.09.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) VI, HYDERABAD DATED 15.07.2008 AND THE GRIEVANCE OF THE REVENUE IS PROJECTED IN THE FOLLOWING GROUNDS RAISED THEREIN - 1. THE CIT(A) ERRED IN DELETING THE ADDITION MADE TOWARDS INTEREST ON CALL DEPOSITS S TATING THAT THE SO CALLED CALL DEPOSITS STOOD AS GENUINE AFTER THE ORDER O F THE CIT(A) , WITHOUT CON S I D ERING THE FACT THAT THE DEPARTMENT FIL E D 2 ND APP E AL, W HICH IS PENDING BEFORE THE ITAT. 2 . THE CIT(A) ERRED IN ALLOWING EXEMPTION U/S. 80P OF THE ACT , FOLLO W IN G HIS OWN DECISION FOR THE EARLIER YEARS, WITHOUT CON S I D ERING THE FACT THAT THE DEPARTMENT HA FIL E D SECOND APPEAL BEFORE THE ITAT, WHICH IS PENDING. 3. .. 2. WE HAVE HEARD THE ARGU MENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS FOR THE FIRST I TA NO. 1440 /H YD/20 08 M/S. LAXMI SRINIVASA MUTUALLY AIDED CO - OP CREDIT SOCIETY, HYDERABAD 2 EFFECTIVE GROUND RELATING TO DISALLOWANCE MADE BY THE ASSESSING OFFICER WITH REGARD TO INTEREST ON CALL DEPOSITS, AS SUBMITTED BY THE LEARNED COUNSEL FOR TH E ASSESSEE, THE ORDERS OF THE LEARNED CIT(A) DELETING THE ADDITIONS MADE BY THE ASSESSING OFFICER UNDER S.68 TREATING THE RELEVANT CALL DEPOSITS AS BOGUS FOR THE EARLIER YEARS HAS A LREADY BEEN UPHELD BY THE TRIBUNAL. HE HAS ALSO PLACED ON RECORD, A COPY OF THE ORDER OF THE TRIBUNAL DATED 16.7.2014 (ITA NOS.510 TO 512/HYD/2006 FOR ASSESSMENT YEARS 2002 - 03 TO 2003 - 04), WHICH CLEARLY SHOWS THAT THE RELEVANT CALL DEPOSITS RECEIVED BY THE ASSESSEE IN THE EARLIER YEARS HAVE BEEN ACCEPTED BY THE TRIBUNAL A S GENUINE. CONSEQUENTLY, THE INTEREST PAID BY THE ASSESSEE ON THE SAID DEPOSITS DURING THE YEAR UNDER CONSIDERATION IS LIABLE TO BE ALLOWED AS DEDUCTION, AND WE, THEREFORE, FIND NO INFIRMITY IN THE IMPUGNED ORDER OF THE LEARNED CIT(A) DELETING THE DISALLOW ANCE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST PAID ON THE RELEVANT CALL DEPOSITS. REVENUES GROUND ON THIS ISSUE IS ACCORDINGLY REJECTED. 3. EVEN WITH REGARD TO THE OTHER GRIEVANCE OF THE REVENUE RELATING TO ASSESSEES CLAIM FOR RELIEF UNDE R S.80P OF THE ACT, CONTAINED IN GROUND NO. 2 ABOVE, WE FIND THAT THIS ISSUE ALSO, AS POINTED OUT BY THE LEARNED COUNSEL FOR THE ASSESSEE, IS COVERED IN FAVOUR OF THE ASSESSEE AND AGAIN S T THE R E VENUE BY THE ORDER OF THIS TRIBUNAL IN THE CA S E OF M/S. L AXMI SRINIVAS A FINANCE COR P ORATION , S E CUN D ERAB A D FOR ASSESSMENT YEARS 2002 - 03 AND 2003 - 04, WHEREBY THE ACTION OF THE CIT(A) IN THAT CA S E IN ACCEPTING THE CLAIM OF THE ASSESSEE FOR RELI E F UNDER S.80P OF THE ACT, HAS BEEN UPHELD FOR THE FOLLO WI N G REASONS DISCUSSE D IN PARA 9 OF THE SAID ORDER - 9. WE HAVE CONSIDERED THE ISSUE AND EXAMINED THE RIVAL CONTENTIONS. AS FAR AS THE SO - CALLED IRREGULARITIES AND VIOLATION OF PROVISIONS OF MUTUALLY AIDED COOPERATIVE I TA NO. 1440 /H YD/20 08 M/S. LAXMI SRINIVASA MUTUALLY AIDED CO - OP CREDIT SOCIETY, HYDERABAD 3 SOCIETY ACT ARE CONCERNED, MANY OF THE IRREGULARITIES H AVE BEEN EXAMINED BY THE LD. CIT(A) IN DETAIL AND HAS COME TO A CORRECT CONCLUSION THAT ASSESSEE HAS MAINTAINED BOOKS OF ACCOUNTS, FUNDS OF THE SOCIETY HAVE NOT BEEN UTILIZED BY ANY OF THE MEMBERS AND EVEN THOUGH AMOUNTS ARE DIFFERENTLY ACCOUNTED FOR, ENTI RE FUNDS WERE AVAILABLE WITH THE SOCIETY. NOT ONLY THAT, ON THE BASIS OF THE VERY SAME BOOKS IMPOUNDED DURING THE SURVEY, ASSESSEE WAS IN A POSITION TO WORK OUT THE INCOMES AND FILED REVISED RETURNS. EVEN OTHERWISE, SINCE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80P, THE LD. CIT(A) HAS CORRECTLY CONCLUDED THAT THE INCOMES EARNED BY THE SOCIETY WOULD GET EXEMPTION UNDER THE PROVISIONS OF 80P. WE, THEREFORE, DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) AS HE HAS EXAMINED THE IS SUES BOTH FACTUALLY AND LEGALLY. WE CONFIRM THE ORDER OF THE LD. CIT(A). ACCORDINGLY, GROUND NOS. 1 AND 2 OF THE REVENUE ARE REJECTED. FACTS AND CIRCUMSTANCES OF THE CASE BEING IDENTICAL IN THE PRESENT CASE AS WELL, FOLLOWING THE DECISION OF THE COORDI NATE BENCH NOTED ABOVE, WE FIND NO INFIRMITY IN THE IMPUGNED ORDER OF THE CIT(A) ON THIS ISSUE. WE ACCORDINGLY UPHOLD THE SAME, REJECTING THE GROUND FO THE REVENUE ON THIS ISSUE. 4 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 17 TH SEPTEMBER, 2014 SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 17 TH SEPTEMBER, 2014 COPY FORWARDED TO: 1. M/S. LAXMI SRINIVASA MUTUALLY AIDED CO - OP CREDIT SOCIETY, 12 - 1 - 508/67, LAXMINAGAR , NORTH LALAGUDA, SECUNDERABAD 2 . INCOME TAX OFFICER WARD 11(2), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) VI, HYDERABAD COMMISSIONER OF INCOME - TAX V, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S