ITO-WARD-3, Chandrapur V. M/S ZILLA PARISHAD PRIMARY TEACHERS CO-OPERATIVE SOCIETY LTD., CHIMUR

ITA 165/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1797 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 02-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Section: 143(3)

Judgement Text

1 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. SR. NO. ITA NO. ASSTT. YEAR. APPELLANT RESPONDENT. 1. 165/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 3, CHANDRAPUR. M/S ZILLA PARISHAD PRIMARY TEACHERS CO - OP. SOCIETY LTD., CHIMUR. 2. 166/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 3, CHANDRAPUR SHIVAJI NAGAR EMPLOYEES CREDIT CO - OP. SOCIETY LTD., NEW MAJRI, DIST.CHANDRAPUR. 3. 167/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 3, CHANDRAPUR M/S THE CTPS EMPLOYEES CO - OP. CREDIT SOCIETY LTD., URJANAGAR. 4. 169/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 4, CHANDRAPUR M/S HINDUSTHAN LALPETH OPEN CAST KAMGAR SAH. PAT SANSTHA LALPETH COLLIERY, CHANDRAPU R. 5. 170/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 1, CHANDRAPUR M/S DURGAPUR RAYYATWARI COLLIERY EMPLOYEES CREDIT CO - OP. SOCIETY, CHANDRAPUR. 6. 172/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 2, CHANDRAPUR M/S PADMAPUR OPEN CAST EMP. CO - OP. CREDIT SOCIETY LTD., PADMAPUR, DIST. CHANDRAPUR. 7. 173/NAG/2014 2010 - 11 INCOME - TAX OFFICER,WARD - 2, CHANDRAPUR M/S M.E.L. EMP. CO - OP. PAT SANSTHA LTD., MUL ROAD, CHANDRAPUR. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : NONE (IN S R .NO.1 ,4&7 ) : SHRI HARISH BHONEJA (IN S R .N O .2 &5 ) : SHRI MUKESH AGRAWAL (IN SR.NO.3&6) DATE OF HEARING : 08 - 07 - 2015 DATE OF PRONOUNCEMENT : 14 TH AUGUST, 2015. 2 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 O R D E R PER BENCH: IN ALL THESE APPEALS ALMOST IDENTICALLY WORDED GROUNDS HAVE BEEN RAISED BY THE REVENUE DEPARTMENT IN RESPECT OF THE CLAIM OF DEDUCTION UNDER SECTION 80P OF I.T. ACT. FOR THE SAKE OF REFERENCE GROUNDS RAISED IN ITA NO. 165/NAG/2014 ARE REPRODUCED BELOW : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(APPEALS) IS CORRECT IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I)? 2. WHETHER THE CIT(APPEALS) HAS ERRED IN HOLDING THAT ASSESSEE IS NOT A CO - OPERATIVE BANK FOR THE PURPOSE OF SECTION 80P(4)? 3. WHETHER THE CIT(APPEALS) HAS NOT ERRED IN FAILING TO UPHOLD THE FINDINGS OF THE A.O. THAT THE ASSESSEE IS A CO - OPERATIVE SOCIETY WHICH IS ALSO A CO - OPERATIVE BANK AS PER PART - V OF THE BANKING REGULATION ACT? 2. AT THE OUTSET, WE HAVE BEEN INFORMED THAT THE ASSESSEES CASE S ARE COVERED BY A NUMBER OF DECISION OF ITAT, NAGPUR BENCH TAKEN IN DIFFERENT CASES WHEREIN THE TRIBUNAL HAS DECIDED THE MATTER IN FAVOUR OF THE ASSESSEE . HOWEVER, THE FACTS IN BRIEF AS EMERGED F ROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S 143(3) WERE ALSO IDENTICAL BECAUSE IT WAS MENTIONED THAT THE ASSESSEE IS A COOPERATIVE CREDIT SOCIETY AND PROVIDING CREDIT FACILITY TO ITS MEMBERS. THE ASSESSING OFFICER HAS INVOKED THE PROVISIONS OF SECT ION 80P(4) OF THE I.T. ACT AND ASSESSED THE INCOME OF THE ASSESSEE AFTER DISALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE I.T. ACT. 3 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY, LEARNED CIT(APPEALS) HAS DISCUSSE D THE ISSUE AT LENGTH AND THEREAFTER DIRECTED THE ASSESSING OFFICER TO GRANT DEDUCTION UNDER SECTION 80P (2)(A)(I) OF THE I.T. ACT. 3.1. SINCE THE RESPECTED COORDINATE BENCH HAS ALREADY TAKEN A VIEW IN SEVERAL CASES IN THE PAST, THEREFORE, WE HAVE NO REASO N 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 SAHAKARI 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 CREDIT 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, HELD AS UNDER: 'WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE 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 PROVISIONS 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 ASSESS MENT ORDERS. IN OUR CONSIDERED OPINION, ASSESSEE CO - OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTIONS AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. WE FULLY AGREE WITH THE F'AAS 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 ASSESSEES, 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 THE AOS'. 4 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 AND, THEREFORE, UNDER THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, AS ALSO RESPECTFULLY FOLLOWING THE PRECEDENTS HEREINABOVE, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE HENCE, DISMISSED. 2) ITA NO. 391/NAG/2013 & ITA NO. 397/NAG/2013 DATED 27 - 05 - 2015 IN THE CASE OF ITO V/S. M/S BLACK DI AMOND KARMACHARI CREDIT CO - OP. SOCIETY. RELEVANT PORTION REPRODUCED BELOW: 2. UPON HEARING LEARNED DEPARTMENTAL REPRESENTATIVE AND THE MANAGER OF THE SOCIETY, WE FIND THAT ITAT NAGPUR BENCH IN ASSESSEES OWN CASE IN ITA NO. 156/NAG/2012 FOR ASSESSMENT YEAR 2009 - 10 VIDE ORDER DATED 06.02.2013 HAS DECIDED 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 THE OPINION THAT ORDERS OF THE FAAS DO NOT SUF FER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS 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 CONSIDERE D OPINION, ASSESSEE CO - OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTION AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE 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 O RDER 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 THE AOS. 3. SINCE THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ITATS DECISION IN ASSESSEES OWN CASE, WE UPHOLD THE ORDER OF LEARNED CIT(A). 3) ITA NOS. 357/NAG/2012, 359/NAG/2013, 361/NAG/2013 & 371/NAG/2013 DATED 27 - 05 - 2015 IN THE CASE OF ITO V/S. Z.P. PRIMARY TEACHERS CREDIT CO - OP. SOCIETY LTD. AND OTHERS. RELEVAN T 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 5 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 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 AND SAME WAS DELIVERED IN THE CONTEXT OF EXGIBILITY TO INTEREST TAX ACT. IN OUR CONSIDERED OPINION, THE FACTS OF THE CASE AND RATIO EMANA TING THEREFROM ARE NOT AT ALL APPLICABLE 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 CREDIT CO - OP. SOCIETY. TWO OF THE CASES IN THE SAID CASE ALSO 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 DISMISSED THE R EVENUES APPEAL IN THIS REGARD. 8. IN THE AFORESAID BACKGROUND OF DISCUSSION AND PRECEDENT, IN OUR CONSIDERED OPINION, THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. 4. IN THE LIGHT OF ABOVE DISCUSSION, GROUNDS RAISE D BY THE REVENUE ARE HEREBY DISMISSED. 5. IN THE RESULT, APPEAL S FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 TH DAY OF AUGUST 2015. SD/ - SD/ - ( SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER. JUDICIAL MEMBER NAGPUR, DATED: 14 TH AUGUST , 2015. 6 ITA NOS. 165,166,167,169, 170, 172 & 173/NAG/2014 COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR