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

ITA 1621/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5270 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 08-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNA DAS
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI VIJAYPAL RAO, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA NO.1621 /BANG/2016 (ASST. YEAR 2012-13) THE INCOME-TAX OFFICER, 2(2)(3), BENGALURU. . APPELLANT VS. M/S VASAVI CREDIT CO-OPERATIVE SOCIETY WARD, BENGALURU. . RESPONDENT REVENUE BY : SMT. SWAPNA DAS, JCIT ASSESSEE BY : NONE DATE OF HEARING : 1-6-2017 DATE OF PRONOUNCEMENT : 7-6-2017 O R D E R PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) -2, BANGALORE DATED 15/6/2016 FOR THE ASSESSMENT YEAR 2012-13. ITA NO.1621/B/16 2 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE AS UND ER:- 2.1 THE ASSESSEE, A CREDIT CO-OPERATIVE SOCIETY, F ILED ITS RETURN OF INCOME FOR ASST. YEAR 2012-13 DECLARING INCOME OF R S.3,23,495/-. THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME-TAX A CT, 1961 (IN SHORT THE ACT) AND THE CASE WAS SUBSEQUENTLY TAKEN UP F OR SCRUTINY. THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT VIDE ORDER DATED 30/5/2015; WHEREIN THE INCOME OF THE ASSESSEE WAS D ETERMINED AT RS.92,94,440/-. THIS WAS IN VIEW OF THE ASSESSING OFFICER (AO) DENYING THE ASSESSEE CLAIM FOR EXEMPTION U/S 80P(2) (A)(I) AMOUNTING TO RS.89,15,937/- AS HE WAS OF THE OPINION THAT THE ASSESSEE CREDIT CO- OPERATIVE SOCIETY IS IN FACT A BANK AS PER SECTION 5(CCV) OF THE BANKING REGULATION ACT, 1949 AND, THEREFORE, AS PER THE PROVISION OF SEC. 80P(4) OF THE ACT, THE DEDUCTION CLAIMED U/S 8 0P(2)(A)(I) OF THE ACT WAS NOT ALLOWABLE. ON APPEAL, THE LD CIT(A) VI DE THE IMPUGNED ORDER DATED 15/6/2016 ALLOWED THE ASSESSEES APPEAL FOR GRANT OF DEDUCTION U/S 80P(2)(A)(I) OF THE ACT FOLLOWING THE DECISIONS OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF YASHWAN THPUR CREDIT CO-OPERATIVE SOCIETY LTD. (ITA NO.237/2012 DATED 27 /6/2014) AND ITA NO.1621/B/16 3 THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA, BAGALKOT IN ITA NO.5006/2013 DATED 5/2/2 014. 3.1 REVENUE, BEING AGGRIEVED BY THE ORDER OF THE CI T(A)-2, BANGALORE DATED 15/6/2016, HAS PREFERRED THIS APPEA L RAISING THE FOLLOWING GROUNDS:- 3.2.1 WE HAVE HEARD THE RIVAL CONTENTIONS OF THE LD DR FOR REVENUE AND THE LD AR FOR THE ASSESSEE, AND PERUSED AND CAR EFULLY CONSIDERED THE MATERIAL ON RECORD, INCLUDING THE JUDICIAL PRON OUNCEMENTS CITED. WE FIND THAT THE LD CIT(A), IN THE IMPUGNED ORDER, FOLLOWING THE DECISIONS OF THE HONBLE KARNATAKA HIGH COURT IN TH E CASES OF YASHWANTHPUR CREDIT CO-OPERATIVE SOCIETY LTD. (ITA NO.237/2012 DATED 27/6/2014) AND THE CASE OF SRI BILURU GURUBAS AV PATTINA ITA NO.1621/B/16 4 SAHAKARI SANGHA NIYAMITHA, BAGALKOT IN ITA NO.5006/ 2013 DATED 5/2/2014 ALLOWED THE ASSESSEES APPEAL HOLDING AS U NDER THAT THE ASSESSEE CO-OPERATIVE SOCIETY CANNOT BE TREATED AS A BANK AND IS ELIGIBLE FOR THE DEDUCTION CLAIMED U/S 80P(2)(A)(I) OF THE ACT. ITA NO.1621/B/16 5 3.2.2 RESPECTFULLY FOLLOWING THE DECISION OF THE HO NBLE KARNATAKA HIGH COURT IN THE CASE OF YASHWANTHPUR CREDIT CO-OP ERATIVE SOCIETY LTD. (SUPRA) AND THE CASE OF SRI BILURU GURUBASAV P ATTINA SAHAKARI SANGHA NIYAMITHA, BAGALKOT (SUPRA), WE HOLD THAT TH E ASSESSEE CO- OPERATIVE SOCIETY IS A CREDIT CO-OPERATIVE SOCIETY WHICH IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT AND IS NOT A BANK, AND, THEREFORE, THE PROVISIONS OF SEC. 80P(4) OF THE ACT ARE NOT APPLICABLE. IN THIS VIEW OF THE MATTER, WE FIND NO REASON TO IN TERFERE WITH THE IMPUGNED ORDER OF THE LD CIT(A) ON THIS ISSUE. CON SEQUENTLY, THE GROUNDS RAISED BY REVENUE, BEING DEVOID OF MERIT, A RE DISMISSED. 4. IN THE RESULT, REVENUES APPEAL FOR ASST. YEAR 2 011-12 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH JUNE, 2017 . SD/- SD/- (VIJAYPAL RAO) (JASON P BO AZ) JUDICIAL MEMBER ACCOUNTANT M EMBER BANGALORE DATED : 7/6/2017 VMS ITA NO.1621/B/16 6 COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REG ISTRAR, ITAT, BANGALORE.