The Jubilee Hills Co-operative House Building Society Limited , Hyderabad V. Income Tax Officer, Ward-14(1), Hyderabad

ITA 1539/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4036 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2016-2017
• Appeal Filed On: 15-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 1539 /HYD/20 1 9 ( ASSESSMENT YEAR : 2016 - 17 ) M/S. THE JUBILEE HILLS CO - OPERATIVE HOUSE BUILDING SOCIETY LIMITED, HYDERABAD. PAN AAEFT5229J ..APPELLANT. VS. INCOME TAX OFFICER , WARD 14(11), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI RAVI BHARADWAJ. RESPONDENT BY : SHRI A. VENKATA RAO (D.R) DATE OF HEARING : 17.08 . 2021. DATE OF PRONOUNCEMENT : 07 .09 . 2021. O R D E R PER S.S. GODARA J. M. : THIS ASSESSEES APPEAL ARISES FROM THE COMMISSIONER OF INCOME TAX ( APPEALS ) - 6 , HYDERABAD S ORDER DT. 19.07 . 2019 PASSED IN CASE NO. 10737/2018 - 19 / A3/CIT(A) - 6 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2 ITA NO. 1539 /HYD/2019 2. THE ASSESSEE'S SOLE SUBSTANTIVE GRIEVANCES RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION HOLDING INTEREST INCOME OF RS. 1, 82 ,59,141/ - DERIVED FROM CO - OPERATIVE SOCIET Y(IES) A S WELL AS NATIO NALISED BANK (S) AS INELIGIBLE FOR SECTION 80P (2) (D) DEDUCTION IN LIGHT OF TOTGAR CO - OPERATIVE SALE SOCIETY LTD. VS. ITO (2010) 322 ITR 283 (SC) AND (2017) PCIT VS. TOTGAR CO - OPERATIVE SALE SOCIETY LTD. 3 95 ITR 611 (KAR). 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED 80P(2)(D) DEDUCTION /DISALLOWANCE . WE FIND THE INSTANT ISSUE TO BE NO MORE RES INTEGRA IN VIEW OF HONBLE JURISDICTIONAL HIGH COURT S RECENT DECISION IN VAVERU CO - OPERATIV E RURAL BANK LTD. VS. CIT (2017) 396 ITR 371 (A.P.) A ND FOLLOWED IN ITTA NO.669/2016 DT.12.04.2017 HOLDING SUCH TWIN INTEREST INCOMES; BOTH FROM CO - OPERATIVE S OCIETIES AS WELL AS BANKS TO BE ELIGIBLE FOR THE IMPUGNED DEDUCTION. WE THEREFORE HOLD THA T THE ASSESSEE HEREIN IS VERY MUCH ELIGIBLE FOR THE IMPUGNED DEDUCTION 3 ITA NO. 1539 /HYD/2019 GOING BY THE FOREGOING ANALOGY THAT ITS INCOME IN ISSUE IS DERIVED FROM REGULAR BUSINESS ACTIVITY ONLY . THE ASSESSING OFFICER IS THEREFORE DIRECTED TO TREAT ITS INTEREST INCOME OF RS.1,82,59,141 AS ELIGIBLE FOR 80P(2)(D) DEDUCTION AS PER LAW IN CONSEQUENTIAL COMPUTATION. ORDERED ACCORDINGLY. NO OTHER GROUND OR ARGUMENT HAS BEEN PRESSED BEFORE US. 4. THIS ASSESSEE'S APPEAL IS ALLOWED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 3RD SEPT. , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 03. 0 9 . 2021. * REDDY GP COPY TO : 1. M/S. THE JUBILEE HILLS CO - OPERATIVE HOUSE BUILDING SOCIETY LTD., ROAD NO.17A, JUBILEE HILLS, HYDERABAD - 500 171 2. IT O, WARD 14(1) , HYDERABAD. 3. PR. C I T - 6 , HYDERABAD. 4. CIT(APPEALS) - 6 , HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER