M/s. Handloom Weavers Co. Operative Production and Sales Society Ltd, Koppal V. Income Tax Officer, Ward-1, Koppal

ITA 1887/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7706 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 31-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VENKATESH
• Keywords: Difference of opinion; Change of opinion
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 1887 / BANG/201 8 ASSESSMENT YEAR : 20 14 - 15 M/S. HANDLOOM WEAVERS CO- OPERATIVE PRODUCTION AND SALES SOCIETY LTD., MAIN BAZAR, DOTHIHAL POST, KUSTAGITQ., KOPPALA DIST. 584 112. PAN: AAAAH1288G VS. THE INCOME TAX OFFICER, WARD 1, KOPPALA. APPELLANT RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI S. VENKATESH, JCIT (DR) DATE OF HEARING : 0 4 .0 7 .2018 DATE OF PRONOUNCEMENT : 13 .0 7 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT(A), GULBARGA DATED 26.03.2018 FOR ASSESSMEN T YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEEARE AS UNDER. 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ORDER OF THE CIT(A) DATED 26/03/2018, FOR THE ASSESSMENT YEAR 2014-15 I S NOT MAINTAINABLE IN LAW. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THAT THE AMOUNT DEPOSITED BY THE APPELLANT WITH RAICHUR DISTRICT CO-OPERATIVE SOCIETY IT IS TH E APPELLANT AMOUNT WHICH WAS EARNED BY THE APPELLANT OUT OF THE PROFIT EARNED BY APPELLANT THUS THE LEVY OF THE TAX ON THE EARNED IN TEREST BY THE ASSESSING AUTHORITY IS NOT CORRECT AND THE SAME WAS CONFIRMED BY THE CIT(A) AND DISMISSED THE APPEAL IS AGAINST THE LAW. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) FAILED TO APPRECIATE THAT ON THE SAME ISSUE IN THE PREVIOUS YEAR I.E. FOR THE AY-2013-14 THE CIT(A) WAS ACCEPTED THE CONTENTI ON OF THE APPELLANT AND ALLOWED THE APPEAL IN THE APPELLANT O WN CASE BUT IN THIS YEAR THE CHANGE OF OPINION BY THE CIT(A) 86 DISALLO WED THE CLAIM OF ITA NO.1887/BANG/2018 PAGE 2 OF 3 THE APPELLANT IS NOT CORRECT THUS THE ORDER OF CIT( A) IS LIABLE TO BE QUASHED. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE APPELLANT WAS DEPOSIT ED THE AMOUNT, UNDER MANDATORY PROVISION OF CO OPERATIVE SOCIETY A CT BUT WITHOUT APPRECIATING THE SAME AND DISALLOWED THE CLAIM OF T HE APPELLANT IS AGAINST THE LAW 86 THUS THE ORDER OF THE ASSESSING AUTHORITY AND CIT(A) IS LIABLE O BE SET ASIDE. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THAT THE DEPOSITED AMOUNT IS ON THE MANDATORY PROVISION NOT TO EARN THE INCOME BY THE W AY OF INTEREST OUT OF DEPOSIT THEREFORE THE INTEREST RECEIVED ON DEPOS ITED AMOUNT BY THE APPELLANT IS NOT LIABLE TO PAY TAX THUS THE LEVY OF TAX IS LIABLE TO BE SET ASIDE. 6. WITHOUT PREJUDICE, THE CIT(A) CONFIRMED THE ASSE SSING AUTHORITY LEVIED TAX AND THE INTEREST LEVIED U/S 234B 86 234C IS EXCESSIVE, ARBITRARY AND OUGHT TO BE DELETED. 7. FOR SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING AND IT IS PRAYS THAT KINDLY MAY ALLOW THE APPEAL IN THE INTEREST OF JUSTICE AND EQUITY. 3. THE APPEAL WAS FILED BY THE ASSESSEE ON 31.05.20 18 AND AS PER ACKNOWLEDGMENT CUM NOTICE ISSUED BY THE TRIBUNAL TO THE ASSESSEE AT THE TIME OF THE FILING OF APPEAL, THE DATE OF HEARING WAS FI XED ON 04.07.2018 AND IT WAS MENTIONED THEREIN. ON THIS DATE, NONE APPEARED ON BEHALF OF THE ASSESSEE AND THERE IS NO REQUEST FOR ADJOURNMENT AND HENCE, IT I S INFERRED THAT ASSESSEE IS NOT INTERESTED IN PROSECUTING THIS APPEAL. 4. RESPECTFULLY FOLLOWING THE TRIBUNAL ORDER RENDER ED IN THE CASE OF CIT VS. MULTIPLAN INDIA LTD. AS REPORTED IN 38 ITD 320 (DEL ), THE APPEAL OF THE ASSESSEE IS DISMISSED AS UNADMITTED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DA TE MENTIONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 13 TH JULY, 2018. /MS/ ITA NO.1887/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.