Appeal Details
Counselvise Citation
[2019] 117 COUNSELVISE.COM (IT) 3196 (ITAT-NAGPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 year(s) 10 month(s) 25 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
16-04-2019
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2009-2010
Appeal Filed On
22-05-2012
Judgement Text
, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI RAJENDRA , A M ITA NO. 18 7 / N AG / 20 1 2 ( ASSESSMENT YEAR : 200 9 - 10 ) ITO WARD - 7(2) , MECL BLDG. DR. AMBEDKAR BHAVAN, NAGPUR - 440 006 VS. THE NILDOHA SAHAKARI PATH SANSTHA MARYADIT, SANTOSH S INGH & SONS COMPLEX, GAJANAN NAGAR, HINGNA ROAD, NILDOHA, DISTRICT NAGPUR . PAN/GIR NO. : A A BTA 5473 A ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. H.WANARE /ASSESSEE BY : MR. YASH VERMA DATE OF HEA RING : 1 ST FEB ., 201 3 DATE OF PRONOUNCEMENT : 20 TH MARCH, 201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH IS APPEAL HA S BEEN PREFERRED BY THE DEPARTMENT BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER OF LEAN ED CIT (A) - I I , NAGPUR (MAHARASHTRA) RELATING TO THE ASSESSMENT YEAR 200 9 - 10 , WHICH HA S BEEN HEARD THROUGH E - COURT, MUMBAI . 2 . THE DEPARTMENT IS OBJECTING IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR THE DEDUCTION OF RS. 16,42,040/ - UND ER SECTION 80P (2)A(I) OF THE ACT. ITA NO . 18 7 /20 1 2 2 3 . THE AO DISALLOWED THE CLAIM OF THE ASSESSEE IN RESPECT TO DEDUCTION UNDER SECTION 80P(2)(A)(I) ON THE GROUND THAT THE ASSESSEE IS ENGAGED IN BANKING BUSINESS. THE AO OBSERVED THAT S PER PROVISION OF SECTION 80P(4) OF THE ACT, DEDUCTION IS ALLOWABLE ONLY TO PRIMARY AGRICULTURE CREDIT SOCIETY AND PRIMARY C OOPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANKS. IT WAS FURTHER STATED BY THE AO THAT THE ASSESSEE IS NEITHER PRIMARY AGRICULTURE CREDIT SOCIETY NOR PRIMARY COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK WITHIN THE MEANING OF SECTION 56 IN PART V OF BANKING REGULATION ACT, 1949 . ACCORDINGLY, HE REJECTED THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. 4 . IT WAS SUBMITTED BEFORE THE CIT(A) THAT THE ASSESSEE IS A COOPERAT IVE SOCIETY AND NOT DOING ANY BANKING BUSINESS. DETAIL SUBMISSIONS WERE FILED. RELIANCE WAS PLACED ON VARIOUS CASE LAWS ALONG WITH CIRCULAR NO. 312 OF RESERVE BANK OF INDIA. LEARNED CIT(A) AFTER CONSIDERING THE SUBMISSION AND PERUSING THE MATERIAL ON RECORD , FOUND THAT THE AO FAILED TO APPRECIATE THE DISTINCTION BETWEEN CREDIT COOPERATIVE SOCIETY AND COOPERATIVE BANK . THE COOPERATIVE SOCIETY IS IN THE NATURE OF CREDIT RESOURCE SOCIETY WHICH STRIVES TO OBTAIN CREDITS FOR ITS MEMBERS WITH THE OBJECTIVES OF FAC ILITATING CREDIT TO INDIVIDUALS WHILE COOPERATIVE BANKS ARE FULL - FLEDGED BANKING ORGANIZATION. IT IS ALSO NECESSARY TO NOTE THAT THE ASSESSEE COOPERATIVE CREDIT SOCIETY IS UNDER THE PURVIEW OF MAHARASHTRA COOPERATIVE SOCIETY ACT AND CANNOT CONDUCT THE BUS INESS OF BANKING AS CLAIMED BY THE AO . IT WAS FURTHER ITA NO . 18 7 /20 1 2 3 OBSERVED BY THE CIT(A) THAT WITHOUT FULFILLING THE CONDITIONS OF THE REGISTRAR OF SOCIETIES AND THE RESERVE BANK OF INDIA, NO BANKING FACILITY CAN BE STARTED, THEREFORE, IT WAS HELD THAT THE AO WAS NOT JUSTIFIED IN NOT GRANTING DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. 5 . NOW, THE DEPARTMENT IS IN APPEAL AGAINST THE AFORESAID FINDING OF THE CIT(A) HERE BEFORE THE TRIBUNAL. 6 . L EARNED DR PLACED RELIANCE ON THE ORDER OF THE AO. ON THE OTHER HAND , LEARNED COUNSEL OF THE ASSESSEE PLACED RELIANCE ON THE ORDER OF LEARNED CITA). IT WAS SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE NAGPUR BENCH IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT COOPERATIVE SOCIETY LTD., DECI DED IN ITA NO. 85/NAG/2011, FOR ASSESSMENT YEAR 2007 - 08, VIDE ORDER DATED 19 - 12 - 2012 . COPY OF WHICH IS PLACED ON RECORD. FURTHER RELIANCE WAS PLACED ON VARIOUS CASE LAWS. COPIES OF WHICH ARE ALSO PLACED ON RECORD. 7 . AFTER CONSIDERING THE ORDER OF THE AO , CIT(A) AND THE D ECISION OF THE TRIBUNAL IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT COOPERATIVE SOCIETY LTD (SUPRA) , WE FOUND THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THIS TRIBUNAL, WHERE SIMILAR ISSUE HAS BEEN DECIDED IN FAVOU R OF THE ASSESSEE. FINDING OF THE CIT(A) WAS ALSO REMAINED UNCONTROVERTED. THEREFORE, RESPECTFULLY FOLLOWING THE EARLIER DECISION OF THE TRIBUNAL AND VARIOUS OTHER DECISIONS, COPY OF WHICH ARE PLACED ON RECORD, WE AFFIRM THE ORDER OF THE LEARNED CIT(A) . ITA NO . 18 7 /20 1 2 4 8 . IN THE RESULT , APPEAL OF THE DEPARTMENT IS DISMISSED . ORDER PRONOUNCED IN THE E - COURT ON THIS 2 0 TH DAY OF M AR. 201 3 . - 201 3 SD/ - SD/ - ( ) ( RAJENDRA ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 2 0 / 0 3 / 201 3 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPEL LANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI
Mehul