VIVEKANAND AKRUSHAK SAHAKARI PAT SANSTHA MARYADIT , BHANDARA V. INCOME TAX OFFICER WARD -2 , BHANDARA

ITA 168/NAG/2018

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8870 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-09-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 03-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR – VIRTUAL COURT BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA Nos.167 to 169/NAG/2018 िनधाᭅरण वषᭅ / Assessment Years: 2013-14 to 2015-16 Vivekanand Akrushak Sahakari Pat Sanstha Maryadit, C/o KPRK & Associates, 503-504, “Gokul” 3 rd Floor, Near Darodhar Square, 61, Central Avenue, Nagpur- 440032. PAN : AAAAV2404Q Vs. ITO, Ward-2, Bhandara. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: These are the appeals filed by the cooperative society directed against the different orders of ld. Commissioner of Income Tax (Appeals)-2, Nagpur [‘the CIT(A)’] dated 29.05.2018 for the assessment years 2013-14 to 2015-16 respectively. 2. Since the identical facts and common issues are involved in all the above captioned three appeals, we proceed to dispose of the same by this common order. Assessee by : Shri K. K. Thakkar Revenue by : Shri G. J. Ninawe Date of hearing : 26.09.2022 Date of pronouncement : 07.11.2022 ITA Nos.167 to 169/NAG/2018 2 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.167/NAG/2018 for the assessment year 2013-14 are stated herein. ITA No.167/NAG/2018, A.Y. 2013-14 : 4. The appellant raised the following grounds of appeal :- “1. The following additions sustained by Hon'ble CIT(A) are bad in law and on facts:- • Commission on electricity bills collection from Maharashtra State Electricity Distribution Company Limited (MSEDCL) Rs. 1,49,470/-. • Interest on deposit with Maharashtra State Electricity Distribution Company Limited (MSEDCL) Rs 15,000/-. 2. Any other ground which may arise at the time of hearing.” 5. Briefly, the facts of the case are that the appellant is registered under the Maharashtra Cooperative Societies Act. It is found for the purpose of providing credit facilities to its members. The return of income for the assessment year 2013-14 was filed on 05.10.2013 declaring total income at Rs.Nil after claiming exemption u/s 80P(2)(a)(i) of the Income Tax Act, 1961 (‘the Act’) of Rs.14,71,588/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2, Bhandara (‘the Assessing Officer’) vide order dated 27.01.2016 passed u/s 143(3) at total income of Rs.5,61,030/-. While doing so, the Assessing Officer had brought to tax the commission received from Maharashtra State Electricity Distribution Company Limited ITA Nos.167 to 169/NAG/2018 3 (MSEDCL) of Rs.2,03,541/-, interest on FDs and savings bank accounts and interest from MSEDCL of Rs.4,11,560/- by holding that the income had not been derived from its members, therefore, principles of mutuality had no application. 6. Being aggrieved by the above order of assessment, an appeal was filed before the ld. CIT(A), who vide impugned order confirmed the addition on account of commission earned from MSEDCL and the interest earned on the FDs, savings bank account and MSEDCL. However, the ld. CIT(A) deleted the addition of interest earned on the FDs and savings bank account. 7. Being aggrieved by the decision of the ld. CIT(A), the appellant is in appeal before this Tribunal in the present appeal. 8. I heard the rival submissions and perused the material on record. I find that the issue in the present appeal has already been decided in favour of the appellant society by the Co-ordinate Bench of the Pune Tribunal in the case of Bhagyalaxmi Nagri Sahakari Patsanstha Maryadit vs. ITO vide ITA Nos.705 & 706/PUN/2021 dated 14.03.2022, wherein, the Tribunal held that the commission earned on the collection of MSEDCL bills is part of the business activities carried on by the appellant society, therefore, it is held to be exempt from tax under the provisions of section 80P(2)(a)(i) of the Act. Similarly, in respect of interest income earned on FDs and ITA Nos.167 to 169/NAG/2018 4 savings bank account, was held for the purpose of carrying on the business of collection of MSEDCL and the same is exempt as business income of the appellant society u/s 80P(2)(a)(i) of the Act. The ld. DR has not brought any contrary decision on record warranting a different view. Therefore, respectfully following the decision of the Co-ordinate Bench of this Tribunal, I hold that the income earned by the appellant society from the commission earned on the collection of MSEDCL and interest earned on the FDs and savings bank account is exempt u/s 80P(2)(a)(i) of the Act. Thus, the ground of appeal filed by the assessee stands allowed. 9. In the result, the appeal filed by the assessee in ITA No.167/NAG/2018 for A.Y. 2013-14 stands allowed. ITA Nos.168 & 169/NAG/2018, A.Ys. 2014-15 & 2015-16 : 10. Since the facts and issues involved in the above three appeals are identical, therefore, our decision in ITA No.167/NAG/2018 for A.Y. 2013-14 shall apply mutatis mutandis to the remaining two appeals of the assessee in ITA Nos.168 & 169/NAG/2018 for A.Ys. 2014-15 and 2015-16 respectively. Accordingly, the remaining two appeals of the assessee in ITA Nos.168 & 169/NAG/2018 for A.Ys. 2014-15 and 2015-16 are allowed. ITA Nos.167 to 169/NAG/2018 5 11. To sum up, all the above three appeals of the assessee stands allowed. Order pronounced on this 07 th day of November, 2022. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 07 th November, 2022. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-2, Nagpur. 4. The Pr. CIT-2, Nagpur. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर / DR, ITAT, Nagpur. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.