Income-tax Officer, V. Sardar Vallbhai Patel Nagari Sah. Pat. Ltd., Nashik

ITA 1564/PUN/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2023 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-04-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Keywords: Business income; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUN E , , !'!! # , $ % BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM / ITA NO. 1564/PN/2015 $& ' !(' / ASSESSMENT YEAR : 2012-13 INCOME TAX OFFICER, WARD 3(1), NASHIK ....... / APPELLANT )& / V/S. SARDAR VALLABHBHAI PATEL NAGARI SAHAKARI PATSANSTHA LTD., YEOLA, NASHIK PAN : AAALS1333C / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI RAVI PRAKASH / DATE OF HEARING : 07-04-2016 / DATE OF PRONOUNCEMENT : 07-04-2016 * / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEALS)-1, NASHIK DATED 01-09 -2015 FOR THE ASSESSMENT YEAR 2012-13. IN APPEAL, THE REVENUE H AS IMPUGNED THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) IN HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S. 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM THE RE CORDS ARE: THE ASSESSEE IS A CREDIT CO-OPERATIVE SOCIETY AND IS ENGAGED IN THE 2 ITA NO. 1564/PN/2015, A.Y. 2012-13 BUSINESS OF PROVIDING CREDIT TO ITS MEMBERS. THE ASSESSE E FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 2 9-09-2012 DECLARING TOTAL INCOME AS NIL. THE CASE OF THE ASSESSEE WA S SELECTED FOR SCRUTINY AND ACCORDINGLY NOTICE U/S. 143(2) WAS ISSUED TO THE ASSESSEE ON 06-08-2013. THE ASSESSEE IN ITS RETURN OF INCOME CLAIM ED DEDUCTION OF ` 56,68,821/- U/S. 80P(2)(A)(I) OF THE ACT. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER OBS ERVED THAT THE ASSESSEE HAD TOTAL TURNOVER/RECEIPTS OF ` 3,17,44,234/- WHICH INCLUDE INTEREST OF ` 25,61,680/- ON INVESTMENT MADE WITH NATIONALIZED BANKS. THE ASSESSING OFFICER HELD THAT THE ASSESSEE IS NO T ELIGIBLE TO CLAIM DEDUCTION U/S. 80P(2) OF THE ACT ON INTEREST INCOME FR OM INVESTMENTS MADE WITH NATIONALIZED BANKS. AGGRIEVED BY THE ASSESSMENT ORDER DATED 18-09-2014, T HE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONER OF I NCOME TAX (APPEALS). THE COMMISSIONER OF INCOME TAX (APPEALS) VIDE IMPUG NED ORDER HELD THAT THE INTEREST EARNED BY THE ASSESSEE IS THE BUSINESS INCOME ELIGIBLE FOR DEDUCTION U/S. 80P(2)(A)(I) AND GRANTED RELIEF T O THE ASSESSEE BY DELETING THE ADDITION OF ` 25,61,680/-. WHILE HOLDING SO THE COMMISSIONER OF INCOME TAX (APPEALS) FOLLOWED THE DECISION OF TRIBUNAL IN THE CASE OF ITO VS. NIPHAD NAGARI SAHAKARI PATSANSTHA LTD. IN ITA NO. 1336/PN/2011 FOR ASSESSMENT YEAR 2008-09 DECIDED O N 31-07-2013. AGAINST THESE FINDINGS OF THE COMMISSIONER OF I NCOME TAX (APPEALS) THE REVENUE IS IN APPEAL BEFORE TRIBUNAL. 3. SHRI RAVI PRAKASH REPRESENTING THE DEPARTMENT VEHEM ENTLY SUPPORTED THE FINDINGS OF ASSESSING OFFICER IN DISALLOWING THE CLAIM OF DEDUCTION U/S. 80P(2)(A)(I) OF THE ACT. HOWEVER, THE LD. DR ADM ITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN ` 10 LAKHS THAT IS THE MONETARY LIMIT FIXED BY THE CBDT CIRCULAR NO. 21/2015, DATED10-12-2015 FOR FILING APPEAL BEFORE THE TRIBUNAL. 3 ITA NO. 1564/PN/2015, A.Y. 2012-13 4. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. ACCORDINGLY, THE PRESENT APPEAL IS DECIDED IN THE ABSENCE OF LD. AR OF THE ASSESSEE ON THE BASIS OF SUBMISSIONS MADE BY THE LD. DR AND MATERIAL AVAILABLE ON RECORD. 5. UNDISPUTEDLY, THE TAX EFFECT IN THE PRESENT APPEAL IS LES S THAN ` 10 LAKHS. THE CBDT CIRCULAR NO. 21/2015, DATED 10-12-2015 HAS RAISED THE MONETARY LIMIT FOR FILING APPEALS BY THE DEPARTMENT BEFOR E THE TRIBUNAL TO ` 10 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED B Y THE DEPARTMENT IN FUTURE, AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL. THUS, IN VIEW OF THE CBDT CIRCULAR THE PRESENT AP PEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HE ARING ON THURSDAY, THE 07 TH DAY OF APRIL, 2016. SD/- SD/- ( . . / R.K. PANDA) ( ! ' / VIKAS AWASTHY) #' / ACCOUNTANT MEMBER $ % #' / JUDICIAL MEMBER / PUNE; &# / DATED : 07 TH APRIL, 2016 RK *+,$-.'/'(- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ' () / THE CIT(A)-1, NASHIK 4. ' / THE CIT-1, NASHIK 5. !*+ %%,- , ,- , . /01 , / DR, ITAT, A BENCH, PUNE. 6. + 2 34 / GUARD FILE. // ! % // TRUE COPY// #5 / BY ORDER, %6 ,1 / PRIVATE SECRETARY, ,- , / ITAT, PUNE