Income Tax Officer, Ward-2(2)(5), Bangalore V. M/s. The Somavamsha Sahasrajuna Kshatriya Credit Co-operative Society, Bangalore

ITA 1656/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4651 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 10-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Assessee Lawyers: B S BALACHANDRAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 1656 / BANG/201 7 ASSESSMENT YEAR : 20 14 - 15 THE INCOME TAX OFFICER, WARD 2 (2) (5), BANGALORE. VS. M/S. THE SOMAVAMSHA SAHASRAJUNA KSHATRIYA CREDIT CO-OPERATIVE SOCIETY, NO. 43, G K TEMPLE STREET, CHICKPET CROSS, BANGALORE 560 053. PAN: AAAAT4652Q APPELLANT RESPONDENT APPELLANT BY : SMT. PADMA MEENAKSHI, JCIT (DR) RESPONDENT BY : SHRI B.S. BALACHANDRAN, ADVOCATE DATE OF HEARING : 30 .05.2018 DATE OF PRONOUNCEMENT : 08 .0 6 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE WHICH IS DIRECT ED AGAINST THE ORDER OF LD. CIT(A)-2, BANGALORE DATED 10.05.2017 FOR ASSESS MENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE LD. CIT (A) ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE SINCE AS PER SECTION 80P (4) OF THE IT ACT, W.E.F. 01.04. 2007, THE PROVISIONS OF SECTION 80P ARE APPLICABLE ONLY TO A PRIMARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO-OPERATI VE AGRICULTURE AND RURAL DEVELOPMENT BANK AND THUS THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION U/S 80P (2) OF THE ACT. 2. THE LD. CIT(A) ERRED IN PLACING RELIANCE ON THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SR I BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA, BAGAL KOT IN ITA NO.5006/2013 DATED 05.02.2014 AS THE SAID DECISION HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND REVENUE HAS FILED AN SLP BEFORE THE ITA NO.1656/BANG/2017 PAGE 2 OF 3 HON'BLE SUPREME COURT. 3. THE LD. DR OF REVENUE SUBMITTED THAT LD. CIT(A) HAS DECIDED THE ISSUE BY FOLLOWING THE JUDGMENT OF HON'BLE KARNATAKA HIGH CO URT RENDERED IN THE CASE OF CIT VS. SOMAVAMSHA SAHASRARJUNA KSHATRIYA CO-OPERAT IVE SOCIETY LTD. IN ITA NO. 187/2015 DATED 08.09.2015. BUT THE LD. CIT(A) HAS NOT CONSIDERED THE APPLICABILITY OF JUDGEMENT OF HONBLE APEX COURT RE NDERED IN THE CASE OF THE CITIZEN CO-OPERATIVE SOCIETY LTD. VS. ACIT AS REPOR TED IN 397 ITR 1 AND THEREFORE, THE ORDER OF CIT(A) SHOULD BE REVERSED A ND THAT OF AO SHOULD BE RESTORED. THE LD. AR OF ASSESSEE SUPPORTED THE ORD ER OF CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT AS PER THE ASSESSMENT ORDER, THIS IS NOT THE CASE OF THE AO THAT ISSUE IN THE PRESENT CASE HAS ANY CONNECTION WITH THE ISSUE INVOLVED IN THE CASE OF T HE CITIZEN CO-OPERATIVE SOCIETY LTD. VS. ACIT (SUPRA). AS PER THE ASSESSME NT ORDER, IT IS HELD BY THE AO THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSES SEE BY THE JUDGEMENT OF HON'BLE KARNATAKA HIGH COURT RENDERED IN SEVERAL CA SES BUT AO HAS DECIDED THE ISSUE AGAINST THE ASSESSEE ON THIS BASIS THAT T HE DEPARTMENT HAS NOT ACCEPTED THESE JUDGMENTS AS SLP IS FILED IN HONBLE APEX COURT AGAINST THESE JUDGMENTS OF HON'BLE KARNATAKA HIGH COURT AND THERE FORE, THE ISSUE IS DECIDED AGAINST THE ASSESSEE BY DISALLOWING THE CLAIM OF TH E ASSESSEE FOR DEDUCTION U/S. 80P OF IT ACT. THE AO FURTHER HELD THAT SINCE SUCH JUDGMENTS OF HON'BLE KARNATAKA HIGH COURT ARE IN OPERATION TILL THE FINA L VERDICT ON THE ISSUE OF DEDUCTION U/S. 80P BY THE HONBLE APEX COURT, THE D EMAND SO RAISED ON DISALLOWING THE CLAIM MADE U/S. 80P WILL NOT BE ENF ORCED AND SHALL BE KEPT IN ABEYANCE. AS PER THE ORDER OF CIT (A), SHE HAS FOL LOWED VARIOUS JUDGMENTS OF HON'BLE KARNATAKA HIGH COURT RENDERED IN THE CASE O F SRI BILURU GURUBASAVA PATINA SAHAKARI SANGHA NIYAMITHA, BAGALKOT IN ITA N O. 5006/2013 DATED 05.02.2014 AND ALSO THE JUDGMENT OF HON'BLE KARNATA KA HIGH COURT RENDERED IN THE CASE OF CIT VS. SOMAVAMSHA SAHASRARJUNA KSHATRI YA CO-OPERATIVE SOCIETY LTD. (SUPRA). MERELY BECAUSE SLP IS FILED AGAINST THE BINDING JUDGEMENT OF HON'BLE KARNATAKA HIGH COURT, IT CANNOT BE SAID THA T THIS JUDGEMENT IS NOT REQUIRED TO BE FOLLOWED UNLESS THE OPERATION OF THI S JUDGEMENT IS STAYED BY THE HONBLE APEX COURT. THE LD. DR OF REVENUE HAS NOT BROUGHT ON RECORD ANYTHING ITA NO.1656/BANG/2017 PAGE 3 OF 3 TO SHOW THAT THE OPERATION OF THIS JUDGEMENT OF HON 'BLE KARNATAKA HIGH COURT IS STAYED BY HONBLE APEX COURT. HENCE, WE FIND NO RE ASON TO INTERFERE IN THE ORDER OF CIT(A) BECAUSE THE JUDGEMENT OF HON'BLE KA RNATAKA HIGH COURT IS BINDING AND LEARNED CIT (A) HAS DECIDED THE ISSUE B Y FOLLOWING IT. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 08 TH JUNE, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.