The Bhiladi Mercantile Credit Co.Op.So.Ltd., Banaskantha V. The ACIT.,B.K.Circle, Palanpur

ITA 1673/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94255 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 19-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 20-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILAS SHINE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD BEFORE S/SHRI G. D. AGARWAL, VP AND S. S. GODARA, JM ITA NO. 1673 /AHD/2011 ASST. YEAR 2008 - 09 THE BHILADI MERCANTILE CREDIT CO - OP. SOCIETY LIMITED GANJ BAZAR ROAD, AT BHILADI, DIST. B.K. - 3 85310 VS ACIT, BANASKANTHA CIRCLE, PALANPUR . (APPELLANT) (RESPONDENT) PA NO. AA BAT9726A APPELLANT BY NONE RESPONDENT BY SHRI VILAS SHINE, SR. DR DATE OF HEARING: 19. 8 .2015 DATE OF PRONOUNCEMENT : 20/8/2015 O R D E R PER S.S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR A.Y. 2008 - 09 ARISE FROM ORDER DATED 06 - 04 - 2011 PASSED BY THE CIT(A) - XX , AHMEDABAD IN APPEAL NO.CIT(A) - XX/618 / 1 0 - 1 1 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, IN SHORT THE ACT. 2. THE ASSESS EES SOLE SUBSTANTIVE GROUND RAISED IN THE APPEAL CHALLENGES ACTION OF BOTH THE LOWER AUTHORITIES IN REJECTING ITS CLAIM OF SECTION 80P(2)(A)(I) DEDUCTION THEREBY HOLDING IT AS A COOPERATIVE BANK. THE ASSESSEE SOCIETY FILED ITS RETURN ON 23.03.2010 STATIN G NIL ITA NO. 1673 /AHD/2011 ASST. YEAR_ 2008 - 09 2 INCOME. IT HAD CLAIMED ABOVE STATED DEDUCTION BEING A CREDIT COOPERATIVE SOCIETY. THE ASSESSING OFFICER NOTICED FROM ITS ACCOUNT THAT IT WAS CARRYING ON BANKING BUSINESS. HE TOOK INTO CONSIDERATION SECTION 2(24) OF THE ACT AS AMENDED BY SUB CLAUSE (VIIA) W.E.F. 01.04.2007 AND ALSO SUB - SECTION 4 IN SECTION 80P FROM THE VERY DATE FOR OBSERVING THAT THE LEGISLATURE HAD WIDENED SCOPE OF INCOME SO AS TO INCLUDE COOPERATIVE SOCIETIES ALIKE THE ASSESSEE PROVIDING CREDIT FACILITIES TO MEMBERS THEREBY RESTR ICTING THE IMPUGNED DEDUCTION ONLY TO PRIMARY AGRICULTURAL SOCIETY AND PRIMARY COOPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK. HE SOUGHT GUIDANCE FROM EXPLANATORY NOTE TO THE AMENDMENT AND DENIED ASSESSEES CLAIM OF SECTION 80P(2)(A)(I) DEDUCTION. ITS INCOME WAS ACCORDINGLY ASSESSED AS RS.16,38,194/ - IN ASSESSMENT ORDER DATED 22.12.2010. 3. THE CIT(A) HAS UPHELD THE ASSESSING OFFICERS ACTION. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE CASE FILE. RELEVANT FACTS ALREADY STAND NARRATED HERE INABOVE. THE ASSESSEE QUOTES A RECENT DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN CIT VS. JAFARI MOMIN VIKAS COOPERATIVE CREDIT SOCIETY LIMITED [2014] 100 DTR 421 (GUJ.) HOLDING THAT SECTION 80P(4) OF THE ACT WOULD NOT APPLY TO AN ASSESSEE WHICH IS NOT A COOPERATIVE BANK AS PER CBDT CIRCULAR NO.133 OF 2007 DATED 09.05.2007. THE REVENUE FAILS TO POINT OUT ANY DISTINCTION ON FACTS. THIS CASE LAW ADMITTEDLY RELATES TO A CREDIT COOPERATIVE SOCIETY. THE CASE FILE REVEALS THAT THE NEITHER THE ASSESS ING OFFICER NOR THE CIT(A) HAVE DISCUSSED MERITS OF THE ASSESSEES CLAIM SINCE THEY HAVE MAINLY RELIED UPON THE ABOVE STATED ITA NO. 1673 /AHD/2011 ASST. YEAR_ 2008 - 09 3 AMENDMENTS. THIS LEGAL OBJECTION STANDS OVERRULED. WE DIRECT THE ASSESSING OFFICER IN THESE CIRCUMSTANCES TO CONSIDER THE ABOVE S TATED DECISION AND ALLOW THE ASSESSEES DEDUCTION CLAIM AS PER LAW. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20/8/2015 SD/ - SD/ - ( G. D. AGARWAL ) VICE PRESIDENT ( S. S. GODARA ) JUD ICIAL M EMBER TRUE COPY MAHATA/ - COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER DY. REGISTRAR, ITAT, AHMEDABAD