The ITO-Ward-1(3)(5), Ahmedabad V. M/s. State Bank of India Sup-Officials Co-Op. Credit Society Ltd., Ahmedabad

ITA 1659/AHD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8446 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 17-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MAHESH JIWADE
• Assessee Lawyers: M K PATEL
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 1659/AHD/2016 (ASSESSMENT YEAR: 2012-13) ITO, WARD-1(3)(5), AHMEDABAD APPELLANT VS. M/S. STATE BANK OF INDIA SUP-OFFICIALS CO-OP CREDIT SOCIETY LTD., 4 TH FLOOR, SBI BLDG, BHADRA, AHMEDABAD RESPONDENT PAN: AACAS3596E /BY REVENUE : SHRI MAHESH JIWADE, SR. D.R. /BY ASSESSEE : SHRI M. K. PATEL, A.R. /DATE OF HEARING : 06.09.2017 /DATE OF PRONOUNCEMENT : 12.09.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2012-13 A RISES AGAINST THE CIT(A)-4, AHMEDABADS ORDER DATED 07.04.2016, IN C ASE NO. CIT(A)- 4/465/WD-1(3)(5)/15-16, REVERSING ASSESSING OFFICER S ACTION DISALLOWING ASSESSEES DEDUCTION CLAIM OF RS.48,18,615/- U/S.80 P(2)(A)(I), IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. ITA NO. 1659/AHD/16 [ITO VS. M/S. SBI SUP-OFFICIALS CO-OP CREDIT SOCIETY LTD.] A.Y. 2012-13 - 2 - HEARD BOTH SIDES. CASE FILE PERUSED. 2. RELEVANT FACTS ARE IN A VERY NARROW COMPASS. TH IS ASSESSEE IS A CO- OPERATIVE CREDIT SOCIETY. IT RAISED ITS IMPUGNED C LAIM OF DEDUCTION AMOUNTING TO RS.48,18,615/- QUA INTEREST INCOME DERIVED FROM SURPLUS FUNDS PARKED IN SBIS FIXED DEPOSITS SCHEME. THE ASSESSING OFFICER DISALLOWED THE SAME IN ASSESSMENT ORDER DATED 30.01.2015 AFTER CONCLUDING THAT THE ABOVE INTEREST INCOME WOULD NOT AMOUNT TO AN INCOME ELIGIBLE UNDER THE DEDUCTION PROVISION IN QUESTION. HE WAS OF THE VIEW THAT THE SAID INCOME CAME UNDER THE HEAD INCOME FROM OTHER SOURCES U/S.56 R.W.S. 57 OF THE ACT. 3. THE ASSESSEE PREFERRED APPEAL. LEARNED CIT(A) HAS DELETED THE ABOVE DISALLOWANCE BY FOLLOWING HIS CONCLUSION ON THE VER Y ISSUE IN ASSESSEES OWN CASE IN ASSESSMENT YEAR 2010-11. THIS LEAVES THE R EVENUE AGGRIEVED. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL SUBMISSIONS. THE DISPUTE IN QUESTION AS TO WHETHER A CO-OPERATIVE SO CIETIES INTEREST INCOME DERIVED FROM SURPLUS FUND PARKED IN A NATIONALIZED BANKS FIXED DEPOSIT SCHEME IS ENTITLED FOR THE IMPUGNED DEDUCTION OR NO T IS NO MORE RES INTEGRA IN VIEW OF HONBLE JURISDICTIONAL HIGH COURTS DECISIO N IN STATE BANK OF INDIA VS. CIT (2016) 389 ITR 578 (GUJ.). THEIR LORDSHIPS HOL D THAT SUCH AN INCOME IS NEITHER BUSINESS INCOME NOR DERIVED FROM INVESTMENT MADE IN ANOTHER CO- OPERATIVE SOCIETY. WE THEREFORE REVERSE CIT(A)S A CTION DELETING THE IMPUGNED DISALLOWANCE IN PRINCIPLE. THE ASSESSEE A T THIS STAGE RAISES AN ALTERNATIVE PLEA THAT THE IMPUGNED DISALLOWANCE DES ERVES TO BE COMPUTED AS PER NETTING FORMULA. WE FIND THAT A CO-ORDINATE BE NCH DECISION IN ITO VS. THE ALARSA NAGRIK COOPERATIVE BANK SOCIETY LTD. IN ITA NO. 2072/AHD/2014 HAS ALREADY ACCEPTED SUCH A NETTING P LEA. WE THEREFORE ITA NO. 1659/AHD/16 [ITO VS. M/S. SBI SUP-OFFICIALS CO-OP CREDIT SOCIETY LTD.] A.Y. 2012-13 - 3 - ACCEPT ASSESSEES ALTERNATIVE PLEA AND DIRECT THE A SSESSING OFFICER TO FINALIZE NETTING EXERCISE AS PER LAW AFTER AFFORDING ADEQUAT E OPPORTUNITY OF HEARING. 5. THIS REVENUES APPEAL IS PARTLY ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 12 TH DAY OF SEPTEMBER, 2017.] SD/- SD/- ( MANISH BORAD ) ( S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 12/09/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0