ITO-WARD-3, Chandrapur V. M/S WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OP. CREDIT SOCIETY, Chandrapur

ITA 163/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1708 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2015
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 02-04-2014
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 163/NAG./2014 ( ASSESSMENT YEAR : 2009-10 ) INCOME TAX OFFICER WARD-3, AAYAKAR BHAWAN NEAR RAILWAY STATION CHANDRAPUR 442 401 APPELLANT V/S M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY KAMLA NEHRU WARD, WARORA DISTRICT CHANDRAPUR PAN AAAAW0238K .... RESPONDENT REVENUE BY : SHRI NARENDRA KANE ASSESSEE BY : NONE DATE OF HEARING 24.08.2015 DATE OF ORDER 28.08 .2015 O R D E R PER MUKUL K. SHRAWAT, J.M. THIS APPEAL FILED BY THE REVENUE IS EMANATING FROM TH E IMPUGNED ORDER DATED 7 TH JANUARY 2014, PASSED BY THE LEARNED COMMISSIONER (APPEALS)-II, NAGPUR, FOR THE ASSESSME NT YEAR 2009-10, ON THE FOLLOWING GROUNDS OF APPEAL: M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY 2 1. WHETHER ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) IS CORRECT IN HOLDING THAT THE ASSESSEE IS E LIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE I.T. ACT, 1961. 2. WHETHER THE LEARNED CIT(A) HAS ERRED IN HOLDING THAT THE ASSESSEE IS NOT A CO-OPERATIVE BANK FOR THE PURPOSE OF SECTI ON 80P(4) OF THE ACT. 2. NONE APPEARED ON BEHALF OF RESPONDENT ASSESSEE. AT TH E OUTSET, THE LEARNED DEPARTMENTAL REPRESENTATIVE, SHRI NARENDRA KANE, APPEARED BEFORE US AND INFORMED THAT THE ISSUE FOR A DJUDICATION NOW STOOD SETTLED IN FAVOUR OF THE ASSESSEE BY VARIOUS DEC ISIONS OF THIS VERY TRIBUNAL. ASSESSMENT UNDER SECTION 143(3) OF THE INCOM E TAX ACT, 1961 (FOR SHORT 'THE ACT' ) WAS COMPLETED ON 20 TH DECEMBER 2011, WHEREIN IT WAS HELD BY THE ASSESSING OFFICER THAT THE ASSESSEE IS A CO- OPERATIVE CREDIT SOCIETY, INVOLVING IN BANKING BUSINES S BY PROVIDING CREDIT FACILITIES TO ITS MEMBERS. THE ASSESSEE HAD C LAIMED A DEDUCTION UNDER SECTION 80P OF THE ACT OF ` 15,41,719. THE ASSESSING OFFICER HAS MENTIONED THAT SECTION 80P(4), WHICH WAS INSERTED BY FINANCE ACT, 2006, W.E.F. 1 ST APRIL 2007, ACCORDING TO WHICH, EXEMPTION PROVISIONS OF SECTION 80P, SHALL NOT APPLY IN RELATION TO ANY CO -OPERATIVE BANK OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO- OPERATIVE AGRICULTURAL AND RURAL BANK. THE ASSESSING OFFICER HAS ALSO REFERRED EXPLANATION THEREIN ACCORDING TO WHICH THE PR IMARY CO- OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK MEA NS A SOCIETY M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY 3 HAVING ITS AREA OF OPERATION CONFINED TO A TALUKA AND THE PRINCIPLE OBJECT IS TO PROVIDE FOR LONG TERM CREDIT FOR AGRICULTU RAL AND RURAL DEVELOPMENT ACTIVITIES. AFTER INVOKING THE SAID PROV ISIONS, THE ASSESSEE WAS DENIED THE EXEMPTION OF SECTION 80P AND THE CLAI M WAS DISALLOWED. 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY, THE LEARNED CIT(A) HAS QUOTED FEW DECISIONS OF THE APP ELLATE TRIBUNAL AND ALLOWED THE CLAIM. BEING AGGRIEVED, NOW THE REVE NUE IS BEFORE ME. 4. SINCE THE COORDINATE BENCH OF THE TRIBUNAL HAS ALREA DY TAKEN A VIEW IN SEVERAL CASES IN THE PAST, THEREFORE, WE HAV E NO REASON TO TAKE ANY OTHER VIEW BUT TO FOLLOW THE VIEW ALREADY TAKEN. WE REPRODUCE BELOW THE VIEW TAKEN BY THE ITAT IN SOME CASES:- 1) ITA NO. 393/NAG/2013 & C.O.NO. 23/NAG/2013 DATED 5 TH JUNE, 2015 IN THE CASE OF ITO V/S. VISHAL NAGRI S AHAKARI SANSTHA LTD. RELEVANT PORTION REPRODUCED BELOW:- 2.1 APART FROM DECISION PRONOUNCED BY RESPECTED CO- ORDINATE BENCH NAGPUR IN ASSESSEE'S OWN CASE, WE HAVE ALSO BEEN INFORMED THAT IN THE BUNCH OF CASES ITAT 'E' BENCH, NAGPUR VIDE AN ORDER DATED 1ST FEBRUARY, 2013 OF CASES OF ITAT 'E' BENCH, AT SERIAL NO. 1, VIDE ITA NO. 68/NAG/2012 (AY 2008- 09) IN THE CASE OF ITO VS. M/S SHREE GOPALAKRISHNA URBAN CREDI T CO- OPERATIVE SOCIETY MARYADIT, NAGPUR) & OTHERS, WHERE IN E-BENCH OF NAGPUR TRIBUNAL, WHILE GRANTING THE BENEFIT OF DEDUCTION IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE, HEL D AS UNDER:- M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY 4 'WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OPINION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVIS IONS OF THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AND CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO- OPERATIVE BANKS AS ENVISAGED BY THE AOS IN THEIR ASSESSMENT ORDERS. IN OUR CONSIDERED OPINION, ASSES SEE CO-OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTIONS AVAILABLE AS PER THE PROVISI ONS OF SECTION 80P(2)(A) OF THE ACT BY INVOKING THE PROVIS IONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. W E FULLY AGREE WITH THE F'AAS THAT THE APPELLANTS ARE CREDIT CO-OPERATIVE SOCIETIES AND NOT CO-OPERATIVE BANKS A ND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAI LABLE UNDER CHAPTER VI-A OF THE ACT. AS POINTED OUT BY TH E ARS OF THE ASSESSEES, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CRED IT CO-OP. SOCIETY LTD., (SUPRA). FOLLOWING OUR OWN SAI D ORDER, WE DECIDE THE ALL THE GROUNDS OF APPEALS AGA INST THE AOS'. AND, THEREFORE, UNDER THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, AS ALSO RESPECTFULLY FOLLOWING THE PRE CEDENTS HEREINABOVE, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE HENCE, DISMISSED. 2) ITA NO. 391/NAG/2013 & ITA NO. 397/NAG/2013 DATE D 27-05- 2015 IN THE CASE OF ITO V/S. M/S BLACK DIAMOND KARM ACHARI CREDIT CO-OP. SOCIETY. RELEVANT PORTION REPRODUCED BELOW:- 2. UPON HEARING LEARNED DEPARTMENTAL REPRESENTATIV E AND THE MANAGER OF THE SOCIETY, WE FIND THAT ITAT NAGPU R BENCH IN ASSESSEES OWN CASE IN ITA NO.156/NAG/2012 FOR ASSE SSMENT YEAR 2009-10 VIDE ORDER DATED 06.02.2013 HAS DECIDE D THE ISSUE IN FAVOUR OF THE ASSESSEE BY HOLDING AS UNDER:- WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF TH E OPINION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVIS IONS OF THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AN D CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO- OPERATIVE BANKS AS ENVISAGED BY THE AOS IN THEIR ASSESSMENT ORDERS. IN OUR CONSIDERED OPINION, ASSESSEE CO-OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTION AVAILABLE AS PER THE M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY 5 PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY INVOK ING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DON E BY THE AOS. WE FULLY AGREE WITH THE FAAS THAT THE APPELLANTS ARE CREDIT CO-OPERATIVE SOCIETIES AND NOT CO -OPERATIVE BANKS AND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAILABLE UNDER CHAPTER VI-A OF THE ACT. AS POINTED OUT BY THE ARS OF THE ASSESSEE, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO.-OP. SOCIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER , WE DECIDE THE ALL THE GROUNDS OF APPEALS AGAINST TH E AOS. 3. SINCE THE ISSUE IS COVERED IN FAVOUR OF THE ASSE SSEE BY THE ITATS DECISION IN ASSESSEES OWN CASE, WE UPHOLD T HE ORDER OF LEARNED CIT(A). 3) ITA NOS. 357/NAG/2012, 359/NAG/2013, 361/NAG/201 3 & 371/NAG/2013 DATED 27-05-2015 IN THE CASE OF ITO V/ S. Z.P. PRIMARY TEACHERS CREDIT CO-OP. SOCIETY LTD. AND OTH ERS. RELEVANT PORTION REPRODUCED BELOW:- 7. NOW, WE FIND THAT IT IS UNDISPUTED, THAT THESE CO- OPERATIVE SOCIETIES ARE ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS. IT IS NOT AT ALL THE CASE THAT THEY ARE PROVIDING SERVICES OR FACILITIES TO THE PUBLIC AT L ARGE. THE DECISION REFERRED BY THE LD. DR IN THE CASE OF 144 CTR 240, IS THE JUDGMENT OF HONBLE MADRAS HIGH COURT A ND SAME WAS DELIVERED IN THE CONTEXT OF EXGIBILITY TO INTEREST TAX ACT. IN OUR CONSIDERED OPINION, THE FACTS OF TH E CASE AND RATIO EMANATING THEREFROM ARE NOT AT ALL APPLIC ABLE TO THE FACTS OF THE CASE. WE NOTE THAT NAGPUR TRIBUNAL ITSELF HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSES IN BATCH OF GROUP OF CASES BY ORDER DATED 1 ST FEBRUARY, 2013, WHICH INCLUDED ONE OF THE ASSESSEES M/S INDER COLOUR CRE DIT CO- OP. SOCIETY. TWO OF THE CASES IN THE SAID CASE ALS O TRAVELLED TO THE HONBLE JURISDICTIONAL HIGH COURT. BY THE ORDER DATED 26 TH SEPTEMBER, 2013 IN ITA NO. 59 & 60 OF 2013. THE HONBLE JURISDICTIONAL HIGH COURT HAS DIS MISSED THE REVENUES APPEAL IN THIS REGARD. 8. IN THE AFORESAID BACKGROUND OF DISCUSSION AND PR ECEDENT, IN OUR CONSIDERED OPINION, THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. M/S. WARORA PANCHAYAT SAMITY PRIMARY TEACHER CO-OPERATIVE CREDIT SOCIETY 6 5. IN THE LIGHT OF ABOVE DISCUSSION, GROUNDS RAISED BY THE REVENUE ARE HEREBY DISMISSED. 6. IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.08.2015 SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER SD/ - MUKUL K. SHRAWAT JUDICIAL MEMBER NAGPUR, DATED: 28.08.2015 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, NAGPUR CITY CONCERNED; (5) THE DR, ITAT, NAGPUR; (6) GUARD FILE. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY A SSISTANT REGISTRAR ITAT, NAGPUR