Income-tax Officer, V. Nashik District Labour Society Co.op. Fedearation, Nashik

ITA 1876/PUN/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 7440 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-12-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 13-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHANSHU SHEKHAR
• Assessee Lawyers: HARSHAL NASIKKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 1 876 /P U N/20 1 4 / ASSESSMENT YEAR: 20 1 0 - 11 THE INCOME TAX OFFICER, THE INCOME TAX OFFICER, WARD 1 ( 2 ), NASHIK . / APPELLANT VS. NASHIK DISTRICT LABOUR SOCIETIES CO - OP FEDERATION, NASHIK SHRAM - SAHAKAR, CHUMBLE MARG, TIDKE COLONY, N ASHIK 422002 . / RESPONDENT PAN: A AABN0028M / APPELLANT BY : SHRI SUDHANSHU SHEKHAR / RESPOND ENT BY : SHRI HARSHAL NASIKKAR / DATE OF HEARING : 29 . 12 .201 6 / DATE OF PRONOUNCEMENT: 05 . 0 1 .201 7 / / ORDER PER SUSHMA CHOWLA, JM: T HIS APPEAL FILED BY REVENUE IS AGAINST THE ORDER OF CIT( A ) - I , NASHIK , DATED 13 . 08 .201 4 RELATING TO ASSESSMENT YEAR 20 1 0 - 11 AGAINST ORDER PASSED UNDER SECTION 143( 3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) . ITA NO . 1876 / P U N /201 4 NASHIK DISTRICT LABOUR SOCIETIES CO - OP FEDERATION 2 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - I) WHETHER IN THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE THE LD. CIT(A) - I, NASHIK WAS JUSTIFIED IN ALLOWING EXEMPTION FROM INCOME - TAX TO T HE ASSESSEE SOCIETY U/S 80P(2)(A)(VI) OF THE INCOME - TAX ACT EVEN THOUGH THE ASSESSEE SOCIETY IS A FEDERATION OF PRIMARY SOCIETIES WHICH ONLY SUPERVISES AND CO - ORDINATES THE AFFAIRS OF ITS MEMBERS AND CANNOT BE SAID TO BE ENGAGED IN THE COLLECTIVE DISPOSAL OF THE LABOUR OF ITS MEMBERS WITHIN THE MEANING OF SECTION 80P(2)(A)(VI) OF THE INCOME - TAX ACT . II) WHETHER IN THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE THE LD. CIT(A) - I, NASHIK WAS JUSTIFIED IN HOLDING THAT THE ASSESSEE WAS ENGAGED IN THE COLLECTIVE DISPOSAL OF THE LABOUR OF ITS MEMBERS WHEN THERE IS NO INDIVIDUAL WHO IS MEMBER OF THE ASSESSEE SOCIETY. III) THE ORDER OF THE LD. CIT(A) BE CANCELLED AND THAT OF THE A.O. BE RESTORED. 3. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE AT THE OUTS ET POINTED OUT THAT THE ISSUE RAISED IN THIS APPEAL FILED BY THE REVENUE IS SQUARELY COVERED BY THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN EARLIER YEARS IN ASSESSMENT YEARS 2006 - 07 TO 2009 - 10 AND ALSO IN ASSESSMENT YEAR 2012 - 13. 4. THE LEARNED DEPART MENTAL REPRESENTATIVE FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER. 5. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE WAS CO - OPERATIVE SOCIETY WHICH IS REGISTERED UNDER THE MAHARASHTRA STATE CO - OPERATIVE ACT. THE ASSESSEE IS PROVIDI NG CREDIT FACILITIES TO ITS MEMBERS. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD FILED THE RETURN OF INCOME DECLARING NIL INCOME AFTER CLAIMING DEDUCTION UNDER CHAPTER VIA. THE EXPLANATION OF ASSESSEE BEFORE THE ASSESSING OFFICER WAS THAT IT WAS F EDERATION OF LABOUR CONTRACT SOCIETY. THE ASSESSEE HAD ITA NO . 1876 / P U N /201 4 NASHIK DISTRICT LABOUR SOCIETIES CO - OP FEDERATION 3 CLAIMED DEDUCTION UNDER SECTION 80P(2)(A)(VI) OF THE ACT. THE CLAIM OF THE ASSESSEE WAS THAT THE SAID DEDUCTION IS TO BE ALLOWED AS THE PUNE BENCH OF TRIBUNAL FOR THE LAST SEVERAL YEARS HAD ALLOWED T HE SAID CLAIM. FURTHER, RELIANCE WAS PLACED ON THE RATIO LAID DOWN BY THE APEX COURT IN KERALA STATE CO - OPERATIVE MARKETING FEDERATION LTD. VS. CIT REPORTED IN 231 ITR 814 (SC). THE ASSESSING OFFICER OBSERVED THAT THE DEPARTMENT HAS FILED AN APPEAL BEFOR E THE HONBLE BOMBAY HIGH COURT AGAINST THE DECISION OF TRIBUNAL IN ASSESSEES OWN CASE AND HENCE, THE SAID DEDUCTION WAS NOT ADMISSIBLE TO THE ASSESSEE. THE ASSESSEES REFERENCE TO THE DECISION OF APEX COURT IN KERALA STATE CO - OPERATIVE MARKETING FEDERAT ION LTD. VS. CIT (SUPRA) WAS HELD TO BE DISTINGUISHABLE ON FACTS. 6. THE CIT(A) ALLOWED THE CLAIM OF ASSESSEE FOLLOWING THE DECISION OF TRIBUNAL IN ASSESSEES OWN CASE RELATING TO ASSESSMENT YEARS 2006 - 07, 2008 - 09 AND 2009 - 10 IN ITA NOS.62, 63 AND 64/PN /2013, ORDER DATED 24.02.2014. THE RELEVANT PORTION OF THE DECISION OF TRIBUNAL IS REPRODUCED UNDER PARA 6 AT PAGES 6 AND 7 OF THE APPELLATE ORDER. THE CIT(A) HELD THAT SINCE THE FACTS WERE IDENTICAL AND NOTHING CONTRARY TO THE EARLIER YEARS WAS BROUGHT ON RECORD, HENCE, FOLLOWING THE SAID DECISION OF THE TRIBUNAL, THE ASSESSEE WAS HELD TO BE ELIGIBLE FOR CLAIMING THE DEDUCTION UNDER SECTION 80P(2)(A)(VI) OF THE ACT. 7. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8. WE HAVE HEARD THE RIVAL CON TENTIONS AND PERUSED THE RECORD. THE ISSUE ARISING IN THE PRESENT APPEAL IS AGAINST THE CLAIM OF ASSESSEE OF DEDUCTION UNDER ITA NO . 1876 / P U N /201 4 NASHIK DISTRICT LABOUR SOCIETIES CO - OP FEDERATION 4 SECTION 80P(2)(A)(VI) OF THE ACT. THE ASSESSEE IS CO - OPERATIVE SOCIETY AND WA S FEDERATION OF SKILLED AND UNSKILLED LABOURERS. TH E ASSESSEE CLAIMED THAT ITS INCOME WAS ELIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(A)(VI) OF THE ACT IN THE EARLIER YEARS I.E. ASSESSMENT YEARS 2006 - 07, 2008 - 09 AND 2009 - 10. THE SAID CLAIM WAS NOT ALLOWED TO THE ASSESSEE. HOWEVER, THE TRIBUNAL VIDE ORDER DATED 24.02.2014 IN ITA NOS.62, 63 AND 64/PN/2013, FOR ASSESSMENT YEARS 2006 - 07, 2008 - 09 AND 2009 - 10 HELD THE ASSESSEE TO BE ELIGIBLE TO CLAIM THE AFORESAID DEDUCTION. THE RELEVANT FINDINGS OF THE TRIBUNAL ARE REPRODUCED BY THE CIT(A) IN PARAS 7 AND 8 OF THE APPELLATE ORDER, WHICH ARE NOT BEING REPRODUCED FOR THE SAKE OF BREVITY. THE ASSESSING OFFICER ALSO ACKNOWLEDGED THAT THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL IN EARLIER YEARS. HOWEVER, SINCE THE APPEAL HAS BEEN FILED BEFORE T HE HONBLE BOMBAY HIGH COURT AGAINST THE DECISION OF TRIBUNAL, THE SAID DECISION WAS NOT APPLIED BY THE ASSESSING OFFICER. THE CIT(A) HOWEVER, HAS GRANTED RELIEF TO THE ASSESSEE SINCE THE FACTS AND ISSUE WERE IDENTICAL TO THE FACTS AND ISSUE BEFORE THE TR IBUNAL . 9. WE FIND THAT THE TRIBUNAL FURTHER IN ITA NO.1815/PN/2016, RELATING TO ASSESSMENT YEAR 2012 - 13, VIDE ORDER DATED 23.09.2016 HAS ALLOWED THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A)(VI) OF THE ACT TO THE ASSESSEE FOLLOWING EARLIER DECISION OF T HE TRIBUNAL IN ASSESSMENT YEARS 2006 - 07, 2008 - 09 AND 2009 - 10. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE HAS FAILED TO CONTROVERT THE FINDINGS OF CIT(A) AND IN THE ABSENCE OF THE SAME, WE FIND NO MERIT IN THE GROUNDS OF APPEAL RAISED BY THE R EVENUE. FOLLOWING THE SAME PARITY OF REASONING AND SINCE THE ISSUE IS SETTLED IN FAVOUR OF THE ASSESSEE BY EARLIER ORDER OF TRIBUNAL, WE ITA NO . 1876 / P U N /201 4 NASHIK DISTRICT LABOUR SOCIETIES CO - OP FEDERATION 5 UPHOLD THE ORDER OF CIT(A) AND DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE. 1 0 . IN THE RESULT, APPEAL OF REVE NUE IS DISMISSED. ORDER PRONOUNCED ON THIS 5 TH DAY OF JANUARY , 201 7 . SD/ - SD/ - ( ANIL CHATURVEDI ) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; D ATED : 5 TH JANUARY, 201 7 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE A PPELLANT ; 2. / THE RESPONDENT; 2. / THE RESPONDENT; 3. ( ) / THE C I T (A) - I , NASHIK ; 4. / THE C I T - I , NASHIK ; 5. , , / DR B , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE