DCIT CIR 2, KALYAN V. SINDHUDURG NAGRI SAHAKARI PATPEDHI LTD, AMBERNATH

ITA 1935/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100999 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 21-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAYA BHASKAR JACKLE
• Assessee Lawyers: SUBODH RATNAPARKHI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND RAM L AL NEGI, JUDICIAL MEMBER / I .T.A. NO. 1935/MUM/2014 ( / ASSESSMENT YEAR : 2009 - 10 THE DCIT, CIRCLE - 2, KALYAN, 2 ND FLOOR, MOHAN PLAZA, WAYALE NAGAR, KHADAKPADA, KALYAN (W) / VS. M/S. SINDHUDURG NAGRI SAHAKARI PATPEDHI LTD., A - WING, VARDHMAN NAGAR SHIVAJI NAGAR ROAD, VADAVALI SECTION, AMBERNATH (E) ./ ./ PAN/GIR NO. : AAAAS O887Q ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI UDAYA BHASKAR JACKLE / RESPONDENT BY: SHRI SUBODH RATNAPARKHI / DATE OF HEARING : 10 .0 9 .2015 / DATE OF PRONOUNCEMENT : 10 .0 9 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) - 2 , THANE D ATED 1 8 .1 2 .201 3 PERTAINING TO ASSESSMENT YEAR 200 9 - 1 0. 2. THE GRIEVANCE OF THE REVENUE IS TWO FOLD. FIRSTLY THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 33,19,403/ - ON ACCOUNT OF ITA. NO. 1935/M/2014 2 DISAL LOWANCE OF DEDUCTION U/S. 80P(2)(D) OF THE ACT. SECONDLY THE LD. CIT(A) ERRED IN ALLOWING THE CLAIM U/S. 80P(2)(A)(I) OF THE ACT. 3. THE ASSESSEE IS A CREDIT CO - OPERATIVE SOCIETY AND ENGAGED IN PROVIDING THE CREDIT FACILITY TO ITS MEMBERS. IN ITS RET URN OF INCOME, THE ASSESSEE CLAIMED DEDUCTION U/S. 80P(2)(D) OF THE ACT WHICH IS IN RELATION TO THE INTEREST ON INVESTMENTS WITH THE CO - OPERATIVE BANK. THE ASSESSING OFFICER WAS OF THE FIRM BELIEF THAT INTEREST INCOME EARNED ON THE INVESTMENTS IN ANY OTH ER CO - OPERATIVE SOCIETY IS DEDUCTIBLE BUT NOT FROM A CO - OPERATIVE BANK. THE AO WAS OF THE BELIEF THAT THE SAID INCOME IS ALSO NOT ALLOWABLE AS DEDUCTION U/S. 80P(2)(A)(I) OF THE ACT, THE CLAIM WAS ACCORDINGLY DISMISSED BY THE ASSESSEE. 4. THE ASSESSEE CA RRIED THE MATTER BEFORE THE LD. CIT(A) AND REITERATED ITS CLAIM OF DEDUCTION. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS, THE LD. CIT(A) HELD AS UNDER: ON PERUSAL OF THE BALANCE SHEET OF THE APPELLANT, IT IS NOTICED THAT THE APPELLANT HAS SHOWN I NVESTMENT AS BANK INVESTMENT AT RS. 3,42,21,154/ - . THUS, FROM THE MATERIAL AVAILABLE ON RECORD, IT IS NOT CLEAR AS TO WHETHER THESE INVESTMENTS ARE WITH THE CO - OPERATIVE BANKS OR OTHER BANKS. SINCE DEDUCTION U/S. 80P(2)(D) WILL BE ADMISSIBLE ONLY ON THE INTEREST EARNED FROM CO - OPERATIVE SOCIETIES IRRESPECTIVE OF WHETHER THEY ARE CO - OPERATIVE BANKS OR NOT, THE AO IS DIRECTED TO VERIFY THE SAME AND ALLOW THE DEDUCTION ON INTEREST EARNED FROM OTHER CO - OPERATIVE SOCIETIES INCLUDING CO - OPERATIVE BANKS. HO WEVER, THE INTEREST EARNED ON INVESTMENT WITH OTHER BANKS WILL NOT BE ELIGIBLE FOR DEDUCTION U/S. 80P(2)(D). THE AO IS DIRECTED ACCORDINGLY. THUS, THE APPELLANT PARTLY SUCCEEDS IN RESPECT OF REVISED GROUND NO. 1 AND ADDITIONAL GROUND NO. 2. ITA. NO. 1935/M/2014 3 5. AGGRIEVE D BY THIS, THE REVENUE IS BEFORE US. 6. THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY RELIED UPON THE ASSESSMENT ORDER. 7. THE LD. COUNSEL FOR THE ASSESSEE RELIED UPON CERTAIN JUDICIAL DECISIONS, COPIES OF WHICH ARE PLACED ON RECORD IN THE FORM OF PAPER BOOK. 8. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND HAVE GONE THROUGH THE JUDICIAL DECISIONS PLACED BEFORE US. CONSIDERING THE FACTS OF THE CASE IN THE LIGHT OF THE JUDICIAL DECISIONS BROUGHT TO OUR NOTICE, WE DO NOT FIND ANY ERROR OR INFIRMITY IN THE FINDINGS OF THE LD. CIT(A) MENTIONED HEREINABOVE. 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 10 TH SEPTEMBER , 2015 SD/ - SD/ - ( RAM L AL NEGI ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 10 TH SEPTEMBER , 2015 . . ./ RJ , SR. PS ITA. NO. 1935/M/2014 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI