Shri Sangam Sahakari Karkhane Niyamit., Belgaum V. Commissioner of Income Tax, Belgaum

ITA 174/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93489 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 21-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BANGARI
• Assessee Lawyers: PRAVEEN P GH ALI
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA , HONBLE ACCOUNTANT MEMBER ITA NO. 174 /PNJ/2014 (ASST. YEAR : 200 9 - 1 0 ) SHRI SANGAM SAHAKARI SAKKARE KARKHANE NIYAMIT, HID A KAL DAM, TAL UK H UKKERI, DIST. BELGAUM. VS. CIT, BELGAUM. PAN NO. AAAAS 7256 D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PRAVEEN P. GHALI - CA DEPARTMENT BY : SHRI M.R. BANGARI - D.R. DATE OF HEARING : 08 / 0 6 /2015 . DATE OF PRONOUNCEMENT : 08 / 0 6 /201 5 . O R D E R PER N.K. BILLAIYA THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF L D. CIT , BELGAUM , DATED 24 / 03 /201 4 PERTAINING TO A.Y. 200 9 - 1 0 . 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT ERRED IN INITIATING THE REVISIONARY PROCEEDINGS U/S. 263 OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY. FOR THE YEAR UNDER CONSIDERATION , RETURN OF 2 ITA NO. 174 /PNJ/2014 INCOME WAS FILED ON 25/09/2009 DECLA R ING TOTAL INCOME AT RS. NIL . THE RETURN WAS SELECTED FOR SCRUTINY ASSESSMENT. AFTER VERIFYING THE DETAILS/SUBMISSIONS MADE BY THE ASSESSEE DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE CLAIM OF THE ASSESSEE U/S. 80(P)(2)(D) OF THE ACT WAS ALLOWED. THE RETURN WAS ASSESSED AT NIL INCOME VIDE ORDER DATED 13/12/2011 . 4 . INVOKING THE POWERS CONFERRED UPON HIM BY VIRTUE OF SEC. 263 OF THE ACT, CIT ISSUED NOTICE TO THE ASSESSEE STATING THAT THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS INSOFAR AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE. 5. DURING THE COURSE OF REVISIONARY PROCEEDINGS, IT WAS EXPLAINED THAT THE ASSESSEE IS NOT A COOPERATIVE BANK, BUT A COOPERATIVE SOCIETY . O N BEING A COOPERATIVE SOCIETY, IT HAS RECEIVED INTEREST FROM ANOTHER COOPERATIVE SOCIETY AND THE ENTIRE INCOME IS DEDUCTABLE U/S. 80(P)(2) OF THE ACT. IT WAS FURTHER BROUGHT TO THE N OTICE OF THE CIT THAT SUB - CLAUSE (4) TO SECTION 80P OF THE ACT IS INTRODUCED FOR COOPERATIVE BANKS AND , THEREFORE , OTHER ENTITIES ARE NOT DEPRIVED OF THE BENEFIT OF SEC. 80(P)(2) OF THE ACT. 6. THE CLAIM/SUBMISSION S MADE BY THE ASSESSEE DID NOT FIND FAVOUR WITH THE CIT, WHO WAS OF THE FIRM BELIEF THAT THE ASSESSING OFFICER 3 ITA NO. 174 /PNJ/2014 MADE THE ASSESSMENT ORDER WHICH IS ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTEREST OF THE REVENUE . THE CIT CONCLUDED BY DENYING THE BENEFIT OF DEDUCTION U/S. 80(P)(2) OF THE ACT. 7. AGGRIEVED BY THIS, ASSESSEE IS BEFORE US. 8. COUNSEL FOR THE ASSESSEE REITERATED WHAT HAS BEEN SUBMITTED BEFORE THE LOWER AUTHORITIES. 9. PER C ONTRA, LEARNED DR STRONGLY SUPPORTED THE ORDER OF THE CIT . 10. WE HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER. AN IDENTICAL ISSUE HAS BEEN CONSIDERED BY US IN THE CASE OF THE GOA SHIPYARD EMPLOYEES COOPERATIVE CREDIT SOCIETY LTD. VS. CIT IN I.T.A.NO. 44/PNJ/2013 VIDE ORDER DATED 08/06/2015 WHEREIN FOLLOWING THE ORDER OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA VS. CIT , W E QUASHED THE 263 ORDER PASSED BY THE CIT. 11. FACTS AND ISSUES ARE BEING IDENTICAL , RESPECTFULLY FOLLOWING OUR OWN DE CISION IN THE CASE OF THE GOA SHIPYARD EMPLOYEES COOPERATIVE CREDIT SOCIETY LTD. (SUPRA) , WE SET ASIDE THE ORDER OF CIT AND RESTORE THAT OF THE ASSESSING OFFICER. 4 ITA NO. 174 /PNJ/2014 12 APPEAL FILED BY THE ASSESSEE IS , ACCORDINGLY , ALLOWED. ( ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE , 201 5 ). S D / - S D / - ( GEORGE MATHAN ) ( N.K. BILLA I YA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 0 9 T H JUNE , 201 5 . VR/ - COPY TO: 1 . THE APPELLANT 2 . THE RESPONDENT 3 . THE LD. CIT 4 . THE CIT(A) 5 . THE D.R 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI 5 ITA NO. 174 /PNJ/2014 DATE INITIAL ORIGINAL DICTATION PAD IS ENCLOSED WITH THE FILE . 1. DRAFT DICTATED ON 0 8 .06.2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 08 .06.2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 0 8 / 0 6 / 2 0 1 5 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 0 8 / 0 6 / 2 0 1 5 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 08 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 08 /06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 0 9 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER