ITO, Salem V. S-1308 Ammapet Primary Agricultural Co-operative Credit Society Ltd., Salem

ITA 1529/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8413 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 27-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PATHLAVATH PEERYA
• Assessee Lawyers: M BALU INCOME TAX PRACTI ONER

Judgement Text

, / / / , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . '#$ ' ,& '' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO. 1529/MDS/2016 ) *) / ASSESSMENT YEAR : 2012-13 THE INCOME-TAX OFFICER, WARD -1(1), SALEM. V. S-1308 AMMAPET PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD., AMMAPET, SALEM 636 003. PAN : AAFAS9796K (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI PATHLAVATH PEERYA, CIT ./,-01 / RESPONDENT BY : SHRI M.BALU, INCOME TAX PRACTI ONER 2 03& / DATE OF HEARING : 11.08.2016 4#* 03& / DATE OF PRONOUNCEMENT : 23.09.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A), SALEM DATED 22.03.2016 AND PERTAINS TO ASSE SSMENT YEAR 2012- 13. 2 I.T.A. NO.1529/MDS/2016 2. SHRI PATHLAVATH PEERYA, THE LEARNED REPRESENTATIVE FOR THE DEPARTMENT SUBMITTED THAT THE ASSESSEE CLAIMED DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT TO THE EXTENT OF RS.3,35,90,399/-. THE ASSE SSING OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESS EE HAD TRANSACTION WITH NON MEMBERS OF THE COOPERATIVE SOCIETY. THE LEARNED DEPARTMENT REPRESENTATIVE FURTHER POINTED OUT THAT TAMIL NADU CO-OPERATIVE SOCIETIES ACT, 1983 REFERS ONLY MEMBERS WHO ARE SHAREHOLDERS IN TH E SOCIETY. THERE IS NO CONCEPT OF ASSOCIATE MEMBERS UNDER THE SCHEME OF TH E CO-OPERATIVE SOCIETIES ACT. IN THE CASE BEFORE US, ACCORDING TO THE LEARNE D DEPARTMENT REPRESENTATIVE, THE ASSESSEE HAD TRANSACTION OF PROVIDING CREDIT FA CILITIES, TRADING, ETC. WITH BOTH THE MEMBERS AND NON MEMBERS. THEREFORE, THE ASSESSI NG OFFICER DISALLOWED THE CLAIM OF THE ASSESSEE UNDER SECTION 80P(2)(A)(I ) OF THE ACT. 3. HOWEVER, ON APPEAL BY THE ASSESSEE, THE CIT(A) B Y PLACING RELIANCE ON THE DECISION OF THIS BENCH OF THE TRIBUNAL IN ITA N O.292/MDS/2014 IN THE CASE OF M/S.SL (SPL) 151, KARKUDALPATTY PRIMARY AGRICULT URAL COOPERATIVE CREDIT SOCIETY LTD. VS. ITO DATED 17.03.2014 ALLOWED THE C LAIM OF THE ASSESSEE. THE LEARNED DEPARTMENT REPRESENTATIVE FURTHER POINTED O UT THAT THE REVENUE HAS ALREADY FILED AN APPEAL BEFORE THE HIGH COURT AGAIN ST THE ORDER OF THIS TRIBUNAL IN M/S.SL (SPL) 151, KARKUDALPATTY PRIMARY AGRICULT URAL COOPERATIVE CREDIT SOCIETY LTD. CITED SUPRA. THEREFORE, THE CIT(A) IS NOT JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE. 4. ON THE CONTRARY, SHRI M.BALU, THE LEARNED REPRES ENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAD TRANSACTIO N WITH THE MEMBERS AND 3 I.T.A. NO.1529/MDS/2016 ASSOCIATE MEMBERS. THE ASSOCIATE MEMBERS HAVE NO VO TING RIGHTS. REFERRING TO THE ORDER OF THIS TRIBUNAL IN ITA NO.1845/MDS/2015 DATED 30.10.2015 IN THE CASE OF ITO VS. M/S.S-1308, AMMAPET PRIMARY AGRICUL TURAL COOPERATIVE BANK LTD. THE LEARNED REPRESENTATIVE FOR THE ASSESSEE SU BMITTED THAT THE TRIBUNAL HAS ALLOWED THE IDENTICAL CLAIM OF THE ASSESSEE. IN FAC T THIS TRIBUNAL IN S-1308, AMMAPET PRIMARY AGRICULTURAL COOPERATIVE BANK LTD., PLACED RELIANCE ON THE EARLIER DECISION IN M/S.SL (SPL) 151, KARKUDALPATTY PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD. CITED SUPRA. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE ARISES FOR CONSIDERATION IS THAT THE CLAIM OF THE ASSESSEE UND ER SECTION 80P(2)(A)(I) OF THE ACT. AS RIGHTLY SUBMITTED BY THE LEARNED DEPARTMENT REPRESENTATIVE, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE ASSES SEE ON THE GROUND THAT THE ASSESSEE HAD TRANSACTION WITH THE MEMBERS AND NON M EMBERS. THE NON MEMBERS ARE CLASSIFIED AS ASSOCIATE MEMBERS. THE CI T(A) BY PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL IN THE CASE OF M/S.SL (SPL) 151, KARKUDALPATTY PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD . CITED SUPRA ALLOWED THE CLAIM OF THE ASSESSEE. THIS ORDER OF THIS TRIBUNAL WAS SUBSEQUENTLY FOLLOWED BY ANOTHER DIVISION BENCH IN M/S.S-1308, AMMAPET PRIMA RY AGRICULTURAL COOPERATIVE BANK LTD. CITED SUPRA. ONE OF US, THE A CCOUNTANT MEMBER IS A PARTY TO THE ORDER DATED 30.10.2015. IT IS NOT THE CASE OF THE REVENUE THAT THE ORDER OF THIS TRIBUNAL IN M/S. SL (SPL) 151, KARKUD ALPATTY PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD. CITED SUPRA WAS STA YED BY THE HIGH COURT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MERE PEN DENCY OF THE APPEAL AGAINST 4 I.T.A. NO.1529/MDS/2016 THE ORDER OF THIS TRIBUNAL BEFORE THE HIGH COURT CA NNOT BE A REASON TO TAKE A DIFFERENT VIEW. THEREFORE, BY FOLLOWING THE DECISIO N OF THE COORDINATE BENCH OF THIS TRIBUNAL IN M/S.SL (SPL) 151, KARKUDALPATTY PR IMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD. AND M/S.S-1308, AM MAPET PRIMARY AGRICULTURAL COOPERATIVE BANK LTD. CITED SUPRA., T HIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER O THE LOWER AUTH ORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS D ISMISSED. ORDER PRONOUNCED ON 23 RD SEPTEMBER, 2016 AT CHENNAI. SD/- SD/- (. '#$ ' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) & / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 23 RD SEPTEMBER, 2016. SP. 0 .378 98*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 :3 () /CIT(A) 4. 2 :3 /CIT, 5. 8; .3 /DR 6. ) < /GF.