Prathamika Krushi Pattina Sahakari Sangh Niyamit, Vijayapura V. Income Tax Offcier, Ward- 1 & TPS, Vijayapur

ITA 1589/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9288 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 05-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 80P; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-C BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO. 15 89 / BANG /201 9 ASSESSMENT YEAR : 20 1 5 - 1 6 M/S. PRATHAMIK KRISHI PATTINA SAHAKARI SANGH NIYAMIT, POST: HITTINHALLI, TQ. AND DT. VIJAYAPURA. PAN : AABAP 5653 J VS. THE INCOME-TAX OFFICER WARD-1 AND TPS, VIJAYAPUR. APPELLANT RESPONDENT ASSESSEE BY : S HRI. ASHOK MUDNUR , CA REVENUE BY : SHRI. GANESH R. GHALE, STANDING COUNSEL FOR DEPARTMENT DATE OF HEARING : 2 6 . 11 .20 19 DATE OF PRONOUNCEMENT : 10 .0 1 .20 20 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF CIT(A), BELGAUM, DATED 20.03.2019 FOR ASSESSMENT YEAR 2015-16. 2. IN THE COURSE OF HEARING, IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT THE AO HAS FOLLOWED THE JUDGMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF TOTGARS CO-OPERATIVE SALE SOCIETY LIMITED VS. ITO AS REPORTED IN 322 ITR 283 AND THIS ASSESSMENT ORDER IS UPHELD BY LEARNED CIT(A) WITHOUT CONSIDERING THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO-OPERATIVE SOCIETY LTD. VS. ITO 230 TAXMAN 309 (KARN). HE SUBMITTED THAT IN THE PRESENT CASE, THIS JUDGMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF TOTGARS CO- OPERATIVE SALE SOCIETY LIMITED VS. ITO (SUPRA) IS NOT APPLICABLE BECAUSE THE FACTS ARE DIFFERENT. HE ALSO SUBMITTED A COPY OF THIS TRIBUNAL ORDER RENDERED IN ITA NO. 1589/BANG/2019 PAGE 2 OF 3 THE CASE OF PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., VS. ITO IN ITA NO.1826/BANG/2019 DATED 27.09.2019 AND SUBMITTED THAT IN THIS CASE, THE MATTER WAS RESTORED BACK TO THE FILE OF CIT(A) FOR FRESH DECISION WITH THE DIRECTION THAT HE SHOULD EXAMINE THE FACTS OF THE PRESENT CASE IN THE LIGHT OF JUDGMENTS OF HONBLE APEX COURT RENDERED IN THE CASE OF TOTGARS CO-OPERATIVE SALE SOCIETY LIMITED VS. ITO (SUPRA) AND OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TU MKUR MERCHANTS SOUHARDA CREDIT CO-OPERATIVE SOCIETY LTD. VS. ITO (SUPRA) 233 ITR 309. HE SUBMITTED THAT IN THE PRESENT CASE ALSO, THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT(A) WITH SIMILAR DIRECTIONS. 3. THE LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF THE CIT(A). 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. FIRST OF ALL, I REPRODUCE PARA NO.6 FROM THE TRIBUNAL ORDER CITED BY THE LEARNED AR OF THE ASSESSEE HAVING BEEN RENDERED IN THE CASE OF PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., VS. ITO (SUPRA). THIS PARA READS AS UNDER: 6. HENCE, I SET ASIDE THE ORDER OF CIT (A) AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH DECISION WITH THE DIRECTION THAT HE SHOULD EXAMINE THE FACTS OF THE PRESENT CASE IN THE LIGHT OF THESE TWO JUDGMENTS OF HON'BLE APEX COURT RENDERED IN THE CASE OF TOTGARS CO OPERATIVE SALE SOCIETY LIMITED VS. ITO (SUPRA),AND OF HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHADRA CREDIT COOPERATIVE LTD. VS. ITO (SUPRA) TO FIND OUT WHICH JUDGMENT IS APPLICABLE IN THE FACTS OF THE PRESENT CASE. IF IT IS FOUND THAT THE JUDGMENT OF HON'BLE APEX COURT RENDERED IN THE CASE OF TOTGARS CO OPERATIVE SALE SOCIETY LIMITED VS. ITO (SUPRA) IS APPLICABLE IN THE FACTS OF THE PRESENT CASE THEN IT SHOULD BE HELD THAT THE ASSESSEE IS NOT ENTITLED TO DEDUCTION U/S 80P IN RESPECT OF INTEREST FROM BANK BUT IF IT IS FOUND THAT THE JUDGMENT OF HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHADRA CREDIT COOPERATIVE LTD. VS. ITO (SUPRA) IS APPLICABLE THEN IT SHOULD BE HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S 80P IN RESPECT OF INTEREST FROM BANK. ITA NO. 1589/BANG/2019 PAGE 3 OF 3 5. RESPECTFULLY FOLLOWING THIS TRIBUNAL ORDER, I SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH DECISION WITH SAME DIRECTIONS AS WERE GIVEN BY THE TRIBUNAL IN PARA NO.6 OF THAT TRIBUNAL ORDER REPRODUCED ABOVE. 6. IN THE RESULT, ASSESSEES APPEAL FOR ASSESSMENT YEAR 2015-16 IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- (PAVAN KUMAR GADALE) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE. DATED: 10 TH JANUARY, 2020. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.