Shri Nilkanth Co.op. Credit Society Ltd., Mehsana V. ITO, Patan Ward-5, Mehsana

ITA 1711/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8065 (ITAT-AHMEDABAD)
• Duration Of Justice: 11 month(s) 18 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: 10-07-2017
• 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.1711/AHD/2017 ( / ASSESSMENT YEAR : 2014-15) SHRI NILKANTH CO-OP CREDIT SOCIETY LTD., AT & POST : DAGAVA DIYA, TAL : VIJAPUR, MEHSANA 382 830 / VS. THE INCOME TAX OFFICER, PATAN WARD 5, MEHSANA. ./ ./ PAN/GIR NO. : AAAJS 2855 B ( / 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 $% / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE APPELLATE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-GANDHINAGAR, AHMEDABAD [CIT(A) IN SHORT] VIDE APPEAL NO.CIT(A)/GNR/270/2016-17 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 23.08.2016 RELEVAN T TO ASSESSMENT YEAR (AY) 2014-15. ITA NO.1711/AHD/2017 SHRI NILKANTH CO-OP CREDIT SOCIETY LTD. VS. ITO ASST.YEAR 2014-15 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE 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 ERRED IN DIRECTING THE AO TO TAX THE INTEREST INCOME RECEIVED BY THE APPEL LANT FROM SAVINGS ACCOUNTS HELD IN STATE BANK OF INDIA AND DENA BANK FOR RS 2,51,385/- UNDER THE HEAD INCOME FROM OTHER SOURCES U/S. 56 OF THE INCOME TAX ACT,1961. APPELLANT IS ENTITLED TO EXEMPTION U/S 80 P OF THE INTEREST INCOME AND THEREFORE INCOME ASSESSED U/S 56 OF THE ACT MAY PLEASE BE DELETED. 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 2,51,385/- 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. 3. THE SOLITARY ISSUE INVOLVED IN THE GROUNDS OF AP PEAL RELATES TO WHETHER INTEREST INCOME EARNED ON FIXED DEPOSITS WI TH THE NATIONALIZED BANK WOULD QUALIFY FOR DEDUCTION UNDER SECTION 80P( 2)(A)(I) OF THE INCOME TAX ACT. 4. 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 ITA NO.1711/AHD/2017 SHRI NILKANTH CO-OP CREDIT SOCIETY LTD. VS. ITO ASST.YEAR 2014-15 - 3 - 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. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DI SMISSED. 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