M/s Chikmagalur Pattana Sahakara Bank Niyamitha , Chikmagalur V. Assistant Commissioner of Income Tax Circle-1 , Hassan

ITA 1635/BANG/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0774 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 17-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SIDDAPPAJJI R N
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER ITA NO. 16 35 /BANG/201 8 ASSESSMENT YEAR : 20 1 2 - 1 3 M/S. CHIKMAGALUR PATTANA, SAHAKARA BANK NIYAMITHA, NEAR HANUMANTHAPA CIRCLE, K. M. ROAD, CHIKMAGALUR 577101. PAN : AAAAC 1986 C VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 1, HASSAN. APPELLANT RESPONDENT ASSESSEE BY : SHRI. S A NDEEP, CA REVENUE BY : SHRI. SIDDAPPAJJI R N, ADDL. CIT DATE OF HEARING : 1 1 . 0 9 .201 8 DATE OF PRONOUNCEMENT : 05 . 1 0 .201 8 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), INTER ALIA , ON FOLLOWING GROUNDS: 1. THAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), IN SO FAR IT IS PREJUDICIAL TO THE INTERESTS OF THE APPELLANT, IS BAD AND ERRONEOUS IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON FACTS IN HOLDING THAT INTEREST ON DEPOSITS PAID IN EXCESS OF RS.10,000/- TO ITS MEMBERS IS LIABLE FOR TAX DEDUCTION AT SOURCE U/S 194A OF THE ACT. 3. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON FACTS IN NOT CONSIDERING THE AMENDMENT MADE IN FINANCE ACT, 2015 WHICH CLARIFIES THAT THE COOPERATIVE BANK IS LIABLE FOR MAKING TDS ON INTEREST EXCEEDING RS.10,000 ON THE DEPOSITS MADE BY ITS MEMBERS ONLY FROM 01.06.2015. ITA NO. 1635/BANG/2018 PAGE 2 OF 3 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND ON FACTS IN NOT ALLOWING THE DEDUCTION U/S 36(1)(VIIA) OF RS. 7,99,174/- AS THE APPELLANT MAINTAINS BOOKS OF ACCOUNTS ON CASH BASIS, EVEN THOUGH THE APPELLANT HAS MADE SUFFICIENT PROVISION. EACH OF THE ABOVE GROUNDS IS WITHOUT PREJUDICE TO ONE ANOTHER AND THE APPELLANT CRAVES LEAVE OF THE HON'BLE INCOME TAX APPELLATE TRIBUNAL, BANGALORE TO ADD, DELETE, AMEND OR OTHERWISE MODIFY ONE OR MORE OF THE ABOVE GROUNDS EITHER BEFORE OR AT THE TIME OF HEARING OF THIS APPEAL. 2. GROUND NO. 1 IS OF GENERAL IN NATURE AND NEEDS NO INDEPENDENT ADJUDICATION. WITH REGARD TO GROUND NOS. 2 AND 3, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THESE GROUNDS ARE COVERED BY THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2012-13. COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD. IT WAS ALSO POINTED OUT DURING THE COURSE OF HEARING THAT CIT(A) HAS DECIDED THE APPEAL EX-PARTE WITHOUT AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THIS ORDER OF THE TRIBUNAL WAS NOT BROUGHT TO HIS NOTICE. 3. THE LEARNED DR HAS ALSO CONTENDED THAT SINCE THE CIT(A) HAS NOT EXAMINED THE ISSUE IN THE LIGHT OF THE ORDER OF THE TRIBUNAL, LET THE MATTER BE SENT BACK TO THE CIT(A) FOR ADJUDICATION IN THE LIGHT OF TRIBUNALS ORDER. THIS PROPOSITION WAS NOT OBJECTED TO BY THE LEARNED COUNSEL FOR THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) IN THIS REGARD AND RESTORE THE MATTER TO THE CIT(A) FOR ADJUDICATION OF THE IMPUGNED ISSUES IN THE LIGHT OF THE ORDER OF THE TRIBUNAL FOR THE ASSESSMENT YEAR 2012-13 AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. APROPOS GROUND NO. 4, IT WAS CONTENDED THAT SINCE THE MATTER HAS BEEN SENT BACK TO THE CIT(A), THIS GROUND SHOULD ALSO BE SENT BACK TO THE CIT(A) FOR READJUDICATION. THIS PROPOSITION WAS NOT OBJECTED TO BY THE REVENUE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT(A) IN THIS REGARD AND RESTORE THE MATTER TO THE CIT(A) FOR READJUDICATION OF THE IMPUGNED ISSUE AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO. 1635/BANG/2018 PAGE 3 OF 3 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 5 TH OCTOBER, 2018. SD/- SD/- SD/- BANGALORE. DATED: 5 TH OCTOBER, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. DR (ITAT) 4. CIT 5. CIT(A) 6. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. ( JASON P BOAZ ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER