Income Tax Officer, Bangalore V. M/s.Chaitanya Credit Co-operative Society, Bangalore

ITA 1620/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5420 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 08-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RENUGADEVI
• Assessee Lawyers: NITISH RANJAN
• Section: 56

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.1620/BANG/2016 ASSESSMENT YEAR : 2012-13 INCOME TAX OFFICER, WARD-2(2)(3), BENGALURU. VS. M/S. CHAITANYA CREDIT CO-OPERATIVE SOCIETY, 25/H, RAMACHANDRA BUILDING, 6 TH CROSS, MALLESHWARAM, BENGALURU-560003. PAN : AAAAC1663N APPELLANT RESPONDENT REVENUE BY : SMT. P. RENUGADEVI, JCIT ASSESSEE BY : SHRI. NITISH RANJAN, CA DATE OF HEARING : 25.4.2017 DATE OF PRONOUNCEMENT : 28.4.2017 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE ORDER OF CIT(A), INTERALIA, ON THE FOLLOWING GROUNDS: ITA NO. 1620/BANG/2016 PAGE 2 OF 3 1. THE ORDER OF LD. CIT(A) IS CLEARLY OPPOSED TO L AW AS FAR AS THE FINDINGS ARE PERVERSE, CONTRARY TO THE FACTS AND CI RCUMSTANCES OF THE CASE AND HENCE NOT SUSTAINABLE. 2. THE LD.CIT(A) ERRED IN TREATING THE ASSESSEE AS A CO-OPERATIVE SOCIETY INVOLVED IN EXTENDING CREDIT FACILITIES TO ITS MEMBERS WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE IS A CO-OPE RATIVE BANK AND THAT THE MAIN ACTIVITY OF THE CO-OPERATIVE SOCIETY IS TO LEND CREDIT FACILITIES TO ITS MEMBERS IN THE NATURE OF BANKING TRANSACTIONS WHICH COMES UNDER THE PURVIEW OF INSERTED SUB-SECTI ON (4) TO SECTION 80P W.E.F. 01.04.2007. 3. THE LD,CIT(A) HAS ERRED IN NOT APPRECIATING THE INSERTED PROVISION OF SEC.5(I)(CCII) IN THE PART V OF THE BANKING REGULAT ION ACT UNDER SECTION 56 WHEREIN CO-OPERATIVE CREDIT SOCIETY IS DEFINED. 2. DURING THE COURSE OF HEARING, OUR ATTENTION WAS INVITED TO THE FACT THAT THE IMPUGNED ORDER IS SQUARELY COVERED BY THE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA IN ITA NO. 5006/2013 IN W HICH IT HAS BEEN HELD THAT THE SAID ASSESSEE IS ELIGIBLE FOR THE DEDUCTIO N UNDER SECTION 80P OF THE ACT. THE CIT(A) ADJUDICATED THE ISSUE FOLLOWING TH E JUDGMENT OF THE JURISDICTIONAL HIGH COURT. 3. THE LEARNED DR SIMPLY PLACED RELIANCE UPON THE O RDERS OF THE CIT(A). 4. HAVING CAREFULLY EXAMINED THE ORDERS OF THE CIT( A) WE FIND THAT THE IMPUGNED ORDER IS SQUARELY COVERED BY THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT AND SINCE THE CIT(A) HAS DECIDED THE ISS UE FOLLOWING THE JUDGMENT OF THE JURISDICTIONAL HIGH COURT, WE FIND NO INFIRMITY IN ITS ORDER. ACCORDINGLY, WE CONFIRM THE ORDER OF THE CIT(A). ITA NO. 1620/BANG/2016 PAGE 3 OF 3 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2017. SD/- SD/- (A. K. GARODIA) (SUNIL KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE. DATED: 28 TH APRIL, 2017. /NSHYLU/ COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.