M/s The Planter Co-op Bank Ltd , Hassan V. The Income Tax Officer Ward-2, Hassan

ITA 1624/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4623 (ITAT-BANGALORE)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 16-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR G MANOJ KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I TA NO S . 1624 & 1625 / BANG/2 0 1 8 (ASSESSMENT YEAR S : 2012 - 13 & 2013 - 14 ) THE PLANTER CO - OP. BANK LTD. P B NO.23, BM ROAD, HASSAN - 573201, PAN: AAAAT 0854C VS. APPELLANT INCOME - TAX OFFICER, WARD 2 HASSAN. RESPONDENT APPELLANT BY : SHRI SURESH MUTHUKRISHNAN, CA. RESPONDENT BY : DR.G. MANOJ KUMAR, ADDL.CIT DATE OF HEARING : 05/06/ 2018 DATE OF PRONOUNCEMENT : 15 /06/2018 O R D E R PER I NTURI RAMA RAO, AM : THESE ARE APPEALS FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (A PPEALS ), [CIT(A)], MYSORE , DATED 30 / 11 / 2017 FOR THE ASSESSME NT YEARS 2012 - 13 AND 2013 - 14 . SINCE COMMON ISSUE IS INVOLVED WE PROCEED TO DISPOSE OF THE SAME VIDE THIS COMMON ORDER. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL IN ITA NO.1624/BANG/2018: ITA NO S . 1264 & 1265 /BANG/20 18 PAGE 2 OF 4 2. B RIEFLY THE FACTS OF THE CASE ARE TH AT THE ASSESSEE IS A COOPERATIVE SOCIETY REGISTERED UNDER THE KARNATAKA SOCIETIES REGISTRATION ACT . I T IS ENGAGED IN THE BUSINESS OF CREDIT FACILITIES TO ITS MEMBERS , I T IS STATED THAT IT IS A PRIMARY AGRICULTURAL COOPERATIVE SOCIETY AS DEFINED UNDER THE P ROVISIONS OF RBI GUIDELINES . THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012 - 13 WAS FILED ON 30 /09/ 2012 AT TOTAL INCOME OF RS. 1 , 11 , 360 / - AFTER CLAIMING DEDUCTION UNDER SECTION 80 - P OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHO RT] TO THE EXTENT OF RS. 11 , 74 , 110 / - . A GAINST THE SAID RETURN OF INCOME , THE ASSESSMENT WAS COMPLETED BY THE A SSESSING O FFICER VIDE ORDER DATED 25 / 03 / 2015 P ASSED U /S 143 (3) AT TOTAL INCOME OF RS. 2 , 41 , 810 / - AFTER ALLOWING DEDUCTION OF RS. 15 , 39 , 238 / - U /S 80 - P OF THE A CT . W HILE DOING SO , THE A O DISALLOWED ITA NO S . 1264 & 1265 /BANG/20 18 PAGE 3 OF 4 INTEREST PAID TO NON - MEMBERS OF RS. 3 , 15 , 128 / - ON THE GROUND THAT NO TAX WAS DEDUCTED AT SOURCE INVOKING THE PROVISIONS OF SECTION 40(A)(IA)O F THE ACT . AO ALSO MADE ADDITION OF RS. 1 , 80 , 452 / - IN RESPECT OF INT EREST EARNED FROM INVESTMENTS WITH CANARA BANK ON THE GROUND THAT DEDUCTION U /S 80 - P WAS NOT ALLOWABLE ON SUCH INCOME AS IT IS EARNED FROM NON - MEMBERS AFTER PLACING THE R ELIANCE ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF TOTGAR CO - OPERATI VE SALE SOCIETY LTD. VS. ITO (322 ITR 383) . 3. BEING AGGRIEVED , THE ASSESSEE - SOCIETY PREFERRED A N APPEAL BEFORE THE LD.CIT(A) WHO , VIDE IMPUGNED ORDER , DISMISSED THE A PPEAL AS NO ONE APPEARED ON THE DATE OF HEARING. 4. BEING AGGRIEVED , THE ASSESSE E - SOCIETY I S BEFORE US. I T IS STATED BEFORE US THAT THE LD.CIT(A), WITHOUT GIVING AN OPPORTUNITY HAD DISPOSED OF THE APPEALS AND THEREFORE THE MATTER SHOULD BE SENT BACK TO THE FILE OF THE LD. C IT(A) FOR DE NOVO ADJUDICATION AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE . 5. W E HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD . F ROM THE ORDER OF THE LD.CIT(A), IT IS CLEAR THAT NO PROPER OPPORTUNITY WAS GIVEN TO THE ASSESSEE SO AS TO ENABLE HIM TO CAUSE APPEARANCE BEFORE HIM . THE FIRST DAT E OF HEARING WAS 27/11/2017 AND THE NEXT DATE OF HEARING WAS 29/11/2017 WHICH GOES TO SHOW THAT NO PROPER OPPORTUNITY WAS GIVEN TO THE ASSESSEE TO REPRESENT THE MATTER . T HEREFORE , IN THE FITNESS OF THINGS , WE REMIT THE MATTER BACK TO THE FILE OF THE LD.CIT (A) FOR DE NOVO ADJUDICATION IN ACCORDANCE WITH LAW. 6. IN THE RESULT THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JUNE , 2018 S D/ - S D/ - ( SUNIL KUMAR YADAV ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 15 / 0 6 /201 8 SRINIVASULU, SPS ITA NO S . 1264 & 1265 /BANG/20 18 PAGE 4 OF 4 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE