Lalitamba Pattina Souharda Sahakari Niyamita, Gadag V. Commissioner of Income Tax, Hubli

ITA 1590/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7653 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-06-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 01-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI JT BENGALURU
• Assessee Lawyers: BENNUR NAGARAJ

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC - A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NO.1590/BANG/2016 ASSESSMENT YEAR : 2012-13 LALITAMBA PATTINA SOUHARDA SAHAKARI NIYAMITA, VIVEKANAND ROAD, BEHIND PRASAD NURSING HOME, GADAG 582 101. PAN: AAATL 5716G VS. THE INCOME TAX OFFICER, WARD 1, GADAG. APPELLANT RESPONDENT APPELLANT BY : SHRI BENNUR NAGARAJ, CA RESPONDENT BY : SMT. PADMA MEENAKSHI, JT. CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 02.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 O R D E R THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(APPEALS) INTER ALIA ON THE FOLLOWING GROUNDS:- 1. THE ORDER PASSED BY THE CIT(APPEALS), HUBLI & THE ORDER PASSED BY THE AO ON THE DIRECTIONS FROM CIT(APPEALS ), HUBLI MAY KINDLY BE SET ASIDE AND ALLOW OUR CLAIM OF DEDU CTION U/S. 80P(2)(A)(I), IT IS ELIGIBLE UNDER THE ACT AND PRAY FOR THE JUSTICE. 2. ON THE OTHER HAND, TREAT THE BANK INTEREST INCOM E UNDER OTHER SOURCES AND ALLOW THE COST OF FUNDS AS PER TH E CALCULATIONS SUBMITTED U/S. 57. ITA NO.1590/BANG/2016 PAGE 2 OF 3 3. RECTIFY THE MISTAKE APPARENT ON RECORDS DONE BY THE AO THAT ASSESSED INCOME IS HIGHER THAN THE NET PROFITS WHICH IS OBJECTED BY THE DEPARTMENTAL AUDITORS. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE IMPUGNED ISSUES ARE SQUARELY COV ERED BY THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CAS E OF TUMKUR MERCHANTS SOUHARDA CREDIT CO-OPERATIVE LTD. V. ITO IN ITA NO. 307 OF 2014 , THEREFORE THE APPEAL OF THE ASSESSEE MAY BE ALLOWED. 3. THE LD. DR, ON THE OTHER HAND, HAS SUBMITTED THA T THE CIT(APPEALS) HAS DECIDED THE ISSUE FOLLOWING THE JUDGMENT OF TOTGARS CO-OPERATIVE SALE SOCIETY V. ITO OF THE HONBLE SUPREME COURT. THE CIT(APPEALS) HAS ALREADY ALLOWED THE DEDUCTION OF INTEREST EARNED ON FDRS FROM THE CO- OPERATIVE BANKS U/S 80P OF THE ACT. THE CIT(APPEAL S) HAS ONLY DISALLOWED THE INTEREST EARNED FROM THE FDRS FROM THE OTHER BA NKS. THEREFORE, NO INTERFERENCE IN THE ORDER OF THE CIT(APPEALS) IS CA LLED FOR. 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(A PPEALS) IN THE LIGHT OF RIVAL SUBMISSIONS, I FIND THAT THE CIT(APPEALS) HAS ADJUDICATED THE ISSUE IN THE LIGHT OF THE JUDGMENT OF THE HON'BLE JURISDI CTIONAL HIGH COURT IN THE CASE OF TOTGARS CO-OPERATIVE SALE SOCIETY (SUPRA) AND TUMKUR MERCHANTS SOUHARDA CREDIT CO-OPERATIVE LTD. (SUPRA) AND ALSO THE OTHER JUDGMENT OF THE HONBLE ANDHRA PRADESH HIGH COURT. HAVING TAKE N INTO ACCOUNT ALL THE FACTS, THE CIT(APPEALS) HAS ALREADY ALLOWED DEDUCTI ON U/S. 80P ON THE ITA NO.1590/BANG/2016 PAGE 3 OF 3 INTEREST OR DIVIDEND RECEIVED IN RESPECT OF INCOME BY WAY OF DEPOSITS WITH THE CO-OPERATIVE BANKS FROM ITS INVESTMENT. THE CI T(APPEALS) DID NOT ALLOW THE DEDUCTION U/S. 80P(2)(D) ON INTEREST RECEIVED F ROM THE DEPOSITS IN OTHER BANKS. SINCE DEDUCTION U/S. 80P IS TO BE ALLOWED O NLY ON THOSE RECEIPTS WHICH WERE RECEIVED FROM CO-OPERATIVE SOCIETIES OR CO-OPERATIVE BANKS AND NOT FROM THE OTHER BANKS, WE FIND NO INFIRMITY IN T HE ORDER OF THE CIT(APPEALS). WE ACCORDINGLY CONFIRM THE SAME. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. PRONOUNCED IN THE OPEN COURT ON THIS 31ST DAY OF AUGUST, 2017. SD/- (SUNIL KUMAR YADAV ) JUDICIAL MEMBER BANGALORE, DATED, THE 31 ST AUGUST, 2017. / D ESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.