Shree Yogeshwar Co.Op.Credit Society Ltd., Mehsana V. The Income Tax Officer, Ward-1, Patan

ITA 1677/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8061 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 06-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 56

Judgement Text

, LH LHLH LH IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD LOZJH LOZJH LOZJH LOZJH OLHE VGEN OLHE VGEN OLHE VGEN OLHE VGEN] YS[KK LNL; ,OA ] YS[KK LNL; ,OA ] YS[KK LNL; ,OA ] YS[KK LNL; ,OA EK/KQFERK JKW; EK/KQFERK JKW; EK/KQFERK JKW; EK/KQFERK JKW;] U;KF;D LNL; ] U;KF;D LNL; ] U;KF;D LNL; ] U;KF;D LNL; DS LE{KA DS LE{KA DS LE{KA DS LE{KA BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SMT MADHUMITA ROY, JUDICIAL MEMBER ./ I.T.A. NO.1676/AHD/2017 ( / ASSESSMENT YEAR : 2014-15) CHANASMA TALUKANI PRATH. SALA SHIKSHAKONI NANA DHIRNARI SOHKARI MANDALI LTD., AT: CHANASMA NAVO SUTHARVAS, OPP: DENA BANK, TAL: CHANASMA, PATAN 384 240. / VS. THE INCOME TAX OFFICER, WARD 3, PATAN. ./ ./ PAN/GIR NO. : AAAAC 0431 E ./ I.T.A. NO.1677/AHD/2017 ( / ASSESSMENT YEAR : 2014-15) SHREE YOGESHWAR CO-OP CREDIT SOCIETY LTD. AT & POST : KAHODA, TAL : UNJHA, MEHSANA 384 130 / VS. THE INCOME TAX OFFICER, WARD 1, PATAN. ./ ./ PAN/GIR NO. : AAAJS 1127 N ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SULABH PADSHAH, A.R. / RESPONDENT BY : SHRI PRASOON KABRA, SR. D.R. / DATE OF HEARING 26/06/2018 !'# / DATE OF PRONOUNCEMENT 28/06/2018 ITA NOS.1676 & 1677/AHD/2017 ASST.YEAR 2014-15 - 2 - $% / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTAN CE OF THE DIFFERENT ASSESSEE AGAINST THE SEPARATE APPELLATE ORDERS OF T HE COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR, AHMEDABAD [CIT(A) IN SHORT] VIDE APPEAL NO.CIT(A)/GNR/250/2016-17 & CIT(A)/GNR/297/2 016-17 DATED 05.05.2017 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF THE INCOME TAX ACT, 1961 (HERE-IN-AFTER REFERRED TO AS 'THE ACT') DATED 21.09.2016 & 28.07.2016 RELEVANT TO ASSESSMENT YEAR (AY) 2014-15. SINCE THE COMMON ISSUE IS ARISING IN THE APPEALS FI LED BY BOTH THE ASSESSEE, THEREFORE, BOTH THE APPEALS ARE HEARD TOG ETHER AND ARE BEING DISPOSED OF BY WAY OF A CONSOLIDATED ORDER FOR THE SAKE OF BREVITY. 2. FIRST WE TAKE UP GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN ITA NO.1676/AHD2017 ARE AS UNDER:- YOUR APPELLANT BEING AGGRIEVED BY THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), GANDHINAGAR, PRESENTS THIS APPEAL AGAINST THE SAME ON THE FOLLOWING AMONGST OT HER GROUNDS. 1. THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERR ED IN DIRECTING THE AO TO TAX THE INTEREST INCOME RECEIVE D BY THE APPELLANT FROM SAVINGS ACCOUNTS HELD IN STATE BANK OF INDIA AND DENA BANK FOR RS 2,68,531/- UNDER THE HEAD INCOME F ROM OTHER SOURCES U/S. 56 OF THE INCOME TAX ACT,1961. APPELLA NT IS ENTITLED TO EXEMPTION U/S 80P OF THE INTEREST INCOME AND THE REFORE INCOME ASSESSED U/S 56 OF THE ACT MAY PLEASE BE DEL ETED. 2. NOTWITHSTANDING THE DECISION OF GUJARAT HIGH COURT IN THE CASE OF STATE BANK OF INDIA VS CIT, THE APPELLANT CO.OP. SOCIETY IS ITA NOS.1676 & 1677/AHD/2017 ASST.YEAR 2014-15 - 3 - ENTITLED TO EXEMPTION U/S 80P OF THE INCOME TAX ACT ON THE INTEREST INCOME OF RS 2,68,531/- ALSO. 3. THE ORDER PASSED BY THE LEARNED C.I.T(A) IS BA D IN LAW AND CONTRARY TO THE PROVISIONS OF LAW AND FACTS. IT IS SUBMITTED THAT THE SAME BE HELD SO NOW. YOUR APPELLANT CRAVES LEAVE TO ADD, ALTER AND/OR TO AMEND ALL OR ANY OF THE GROUNDS BEFORE THE FINAL HEARING. 3. NOW WE TAKE UP GROUNDS OF APPEAL RAISED BY THE A SSESSEE IN ITA NO.1677/AHD/2017 ARE AS UNDER: YOUR APPELLANT BEING AGGRIEVED BY THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS),GANDHINAGAR, P RESENTS THIS APPEAL AGAINST THE SAME ON THE FOLLOWING AMONGST OT HER GROUNDS 1. THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN DIRECTING THE AO TO TAX THE INTEREST INCOME RECEIVED BY THE APPEL LANT FROM SAVINGS ACCOUNTS & FIXED DEPOSIT ACCOUNTS HELD IN BANK OF B ARODA, STATE BANK OF INDIA AND DENA BANK FOR RS.15,62,320/- UNDER THE HEAD INCOME FROM OTHER SOURCES U/S.56 OF THE INCOME TAX ACT, 19 61. APPELLANT IS ENTITLED TO EXEMPTION U/S 80P OF THE INTEREST INCOM E AND THEREFORE INCOME ASSESSED U/S 56 OF THE ACT MAY PLEASE BE DEL ETED. 2. NOTWITHSTANDING THE DECISION OF GUJARAT HIGH COURT IN THE CASE OF STATE BANK OF INDIA VS CIT, THE APPELLANT CO.OP. SOCIETY IS ENTITLED TO EXEMPTION U/S 80P OF THE INCOME TAX ACT ON THE INTE REST INCOME OF RS.15,62,320/- ALSO. 3. THE ORDER PASSED BY THE LEARNED C.I.T(A) IS BAD IN LAW AND CONTRARY TO THE PROVISIONS OF LAW AND FACTS. IT IS SUBMITTED T HAT THE SAME BE HELD SO NOW. 4. YOUR APPELLANT CRAVES LEAVE TO ADD, ALTER AND/OR TO AMEND ALL OR ANY OF THE GROUNDS BEFORE THE FINAL HEARING. 4. THE SOLITARY ISSUE INVOLVED IN BOTH THE APPEALS RELATES TO WHETHER INTEREST INCOME EARNED ON FIXED DEPOSITS WITH THE N ATIONALIZED BANK WOULD QUALIFY FOR DEDUCTION UNDER SECTION 80P(2)(A) (I) OF THE INCOME TAX ACT. ITA NOS.1676 & 1677/AHD/2017 ASST.YEAR 2014-15 - 4 - 5. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSE SSEE FAIRLY CONCEDED THAT ISSUE IN DISPUTE IS SQUARELY COVERED AGAINST T HE ASSESSEE BY THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT I N THE CASE OF STATE BANK OF INDIA VS. CIT, 389 ITR 578 WHEREIN HON'BLE COURT HELD THAT INTEREST EARNED FROM THE INVESTMENT MADE IN ANY BAN K IS NOT DEDUCTIBLE UNDER SECTION 80P(2)(A)(I) OF THE ACT. IN THIS VIEW OF THE MATTER, WE DISMISS THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE BOTH APPEALS OF THE ASSESSEE ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 28/06/2018 SD/- SD/- E/KQFERK JKW; E/KQFERK JKW; E/KQFERK JKW; E/KQFERK JKW; OLHE VGEN OLHE VGEN OLHE VGEN OLHE VGEN U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; U;KF;D LNL; YKS[KK LN YKS[KK LN YKS[KK LN YKS[KK LN L; L; L; L; (MADHUMITA ROY) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 28/06/2018 PRITI YADAV, SR.PS !'# $#! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / CONCERNED CIT 4. ) () / THE CIT(A)-GANDHINAGAR, AHMEDABAD. 5. ,-. //'( , '(# , 12$&$ / DR, ITAT, AHMEDABAD 6. .34 5 / GUARD FILE. % & / BY ORDER, , / //TRUE COPY// '/& () ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD