Maa Credit Co-Op. Soc. Ltd., Rajkot V. The ITO Ward-1 (1) (3), Rajkot

ITA 169/RJT/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8580 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 19-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S RATHI
• Assessee Lawyers: J R MANKODI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER) [THROUGH VIRTUAL COURT] ITA. NO: 169/RJT/2018 (ASSESSMENT YEARS: 2013-14) MAA CREDIT COOPERATIVE SOCIETY LTD., SHASHTRI NAGAR (AJMERA) NANA MAVA ROAD, SECOND CIRCLE, RAJKOT-360004 PAN NO. AAFAS 0209R V/S THE INCOME-TAX OFFICER, WARD-1(1)(3), RAJKOT (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J. R. MANKODI, A.R. RESPONDENT BY : SHRI S. S. RATHI, SR. D.R. ( )/ ORDER DATE OF HEARING : 10 -08-2021 DATE OF PRONOUNCEMENT : 12-08-2021 PER MAHAVIR PRASAD, J.M. 1. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (HEREINAFTER CALLED CIT(A)) ORDER NO. CIT(A)- ITA NO. 169/RJT/2018 . A.Y. 2013-14 2 I/RJT/1102/2015-16 ORDER DATED 19/02/2018 ARISING OUT OF ASSESSMENT ORDER DATED 28.01.2016. 2. IN THIS CASE, ASSESSEE IS A COOPERATIVE SOCIETY REGISTERED UNDER COOPERATIVE SOCIETIES ACT. 3. ON VERIFICATION OF THE RECORD, IT IS SEEN THAT ASSESSEE SOCIETY HAS EARNED INTEREST OF RS. 1,72,264/- ON FDRS LYING WITH DENA BANK LTD. AND STATE BANK OF HYDERABAD LTD. AS PER SECTION 80P(2)(A)(I) AND (III) R.W.S. 56 AND 2(24)(I) DEDUCTION IN RESPECT OF INCOME OF CO-OPERATIVE SOCIETIES FROM PROFIT AND GAINS FROM BUSINESS IS ALLOWABLE AS DEDUCTION. INTEREST EARNED ON FDRS WITH NATIONALISED BANKS DOES NOT FALL WITHIN THE MEANING OF EXPRESSION PROFIT AND GAINS FROM BUSINESS. SUCH INTEREST AND DIVIDEND INCOME CANNOT BE SAID TO BE ATTRITUBABLE TO THE ACTIVITIES OF THE SOCIETY. 4. THE ASSESSEE HAS EARNED INCOME FROM DEPOSITS IN NATIONALIZED BANK AND EARNED INTEREST OF RS. 1,75,192/- AND SAME WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 5. AGAINST THE SAID ADDITION, ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LD. CIT(A) WHO CONFIRMED THE ACTION OF THE LD. A.O. BECAUSE IF ASSESSEE WANTED TO AVAIL THE BENEFIT OF DEDUCTION OF SUCH INTEREST. IN THAT CASE, FUNDS SHOULD HAVE BEEN DEPOSITED WITH NATIONALIZED BANK OR IN OTHER COOPERATIVE SOCIETY IN ORDER TO AVAIL DEDUCTION U/S. 80P(2)(A)(I). 6. NOW ASSESSEE HAS COME BEFORE US BY WAY OF A SECOND STATUTORY APPEAL. ITA NO. 169/RJT/2018 . A.Y. 2013-14 3 7. WE HAVE HEARD BOTH THE PARTIES. IN THIS CASE, ASSESSEE HAS DEPOSITED ITS SURPLUS FUND IN NATIONALIZED BANK AND EARNED INTEREST OF RS. 1,75,192/- AND WANTS TO TAKE BENEFIT OF SECTION 80P(2)(A)(I). AS IT IS SETTLED LEGAL PRINCIPAL THAT A COOPERATIVE SOCIETY CAN GET BENEFIT OF SECTION 80P(2)(A)(I) PROVIDED IF SAID SOCIETY HAS DEPOSITED ITS SURPLUS FUND IN COOPERATIVE BANK. AS ASSESSEE HAS PARKED ITS SURPLUS FUND IS NATIONALIZED BANK AND EARNED INTEREST INCOME OUT OF SAID DEPOSITS IN SUCH CASE, ASSESSEE IS NOT ENTITLED FOR DEDUCTION U/S. 80P(2)(A)(I). 8. THUS, IN OUR CONSIDERED OPINION, LOWER AUTHORITIES HAVE PASSED DETAILED AND REASONED ORDER AND SAME DOES NOT REQUIRE ANY KIND OF INTERFERENCE AT OUR END. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 12 - 08- 2021 SD/- SD/- (AMARJIT SINGH) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 12/08/2021 RAJESH COPY OF THE ORDER FORWARDED TO:- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,RAJKOT