Sahyog Co. Op. Credit Society Ltd., Mahisagar V. ACIT, Panchmahal Circle, Godhra

ITA 1956/AHD/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9644 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-03-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 17-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD (THROUGH VIRTUAL COURT) BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 1956/AHD/2018 ( ASSESSMENT YEAR : 2015-16) SAHYOG CO.OP. CREDIT SOCIETY LTD. SAHYOG BHAVAN, VIRPUR ROAD, 388255 (DIST. MAHISAGAR) / VS. ASSTT. COMMISSIONER OF INCOME TAX PANCHMAHAL CIRCLE, BALASINOR, GODHRA ./ ./ PAN/GIR NO. : AABAS0346M ( APPELLANT ) .. ( / RESPONDENT ) & ./ I.T.A. NO. 1957/AHD/2018 ( ASSESSMENT YEAR : 2015-16) BALASINOR VIKAS CO.OP. CREDIT SOCIETY LTD. RAJPURI DARWAJA, BALASINOR 388255 (DIST. MAHISAGAR) / VS. ASSTT. COMMISSIONER OF INCOME TAX PANCHMAHAL CIRCLE, GODHRA (DIST. PANCHMAHAL) ./ ./ PAN/GIR NO. : AAAAB4748H ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SULABH PADSHAH, A.R. / RESPONDENT BY : SHRI JAMES KURIAN, SR.DR DATE OF HEARING 27/11/2020 !'# / DATE OF PRONOUNCEMENT 04/01/2021 ITA NOS. 1956 & 1957/AHD/18 [ SAHYOG CO. OP. CREDIT SOCIETY LTD. & ANR. VS. ACIT] - 2 - / O R D E R PER PRADIP KUMAR KEDIA - AM: BOTH CAPTIONED APPEALS HAVE BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, VADODARA (CIT(A) IN SHORT), DATED 12 .06.2018 ARISING IN THE ASSESSMENT ORDERS DATED 30.08.2017 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 2015-16 IN BOTH CASES. 2. WE SHALL FIRST TAKE UP ASSESSEES APPEAL IN ITA NO. 1956/AHD/2018 CONCERNING AY 2015-16. ITA NO. 1956/AHD/2018 - AY 2015-16 (IN CASE OF SAHY OG CO.OP. CREDIT SOCIETY LTD.) 3. THE GROUNDS OF APPEAL AS REVISED BY THE ASSESSEE READS AS UNDER: 1. THE LD CIT(A) HAS ERRED IN TAXING INTEREST INC OME RECEIVED OF RS.17,02,417/- U/S 56 OF THE ACT DESPITE OF THE FAC T THAT THE SAME IS EXEMPT U/S 80P(2)(D) OF THE ACT. IT IS SUBMITTED T HAT THE INTEREST INCOME EARNED OF RS 17,02,417/- ON INVESTMENT MADE WITH CO . OP BANK IS CLEARLY ELIGIBLE FOR DEDUCTION U/S 80P(2)(D) OF THE INCOME TAX ACT, 1961. ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE ADDIT ION MADE ON ACCOUNT OF INTEREST INCOME RECEIVED OF RS.17,02,417/- FROM K.D.C.C. BANK BE DELETED BY ALLOWING THE SAME AS DEDUCTION U/S 80P(2 )(D) OF THE ACT. THE SAME BE HELD ACCORDINGLY. 4. THE GRIEVANCE OF THE ASSESSEE CONCERNS ELIGIBILI TY OF DEDUCTION CLAIMED UNDER S.80P(2)(D) OF THE ACT ON ACCOUNT OF INTEREST INCOME RECEIVED FROM INVESTMENT MADE WITH CO-OPERATIVE BAN KS. IT WAS SUBMITTED ON BEHALF OF THE ASSESSEE THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE ITA NO.1132/AHD/2018 FOR AY 2014-15 WHEREIN THE CO-ORDINATE BENCH ITA NOS. 1956 & 1957/AHD/18 [ SAHYOG CO. OP. CREDIT SOCIETY LTD. & ANR. VS. ACIT] - 3 - HAS HELD IN FAVOUR OF ASSESSEE BY MAKING REFERENCE TO THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SABARKANTHA DISTRICT CO-OPERATIVE MILK PRODUCERS UN ION LTD. TAX APPEAL NO. 473 OF 2014. IT WAS POINTED OUT ON BEHALF OF THE ASSESSEE THAT K.D.C.C. BANK IS A CO-OPERATIVE BANK REGISTERED UNDER CO-OPERATIVE SOCIETY ACT AND INVESTMENT MADE IN THI S BANK AND INTEREST EARNED. THIS INVESTMENT IS ELIGIBLE FOR D EDUCTION UNDER S.80P(2)(D) OF THE ACT. 5. IN THE GIVEN FACTS AS NOTED ABOVE, THE CLAIM OF THE ASSESSEE UNDER S.80P(2)(D) OF THE ACT APPEARS TO BE IN CONSO NANCE WITH THE PLAIN LANGUAGE OF THE ACT. WE THUS FIND MERIT IN T HE CLAIM OF THE ASSESSEE FOR DEDUCTION UNDER S.80P(2)(D) OF THE ACT IN RESPECT OF INCOME EARNED FROM K.D.C.C. BANK. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ITA NO. 1957/AHD/2018 - AY 2015-16 (IN CASE OF BALA SINOR VIKAS CO.OP. CREDIT SOCIETY LTD.) 7. THE GROUNDS OF APPEAL AS REVISED BY THE ASSESSEE READS AS UNDER: 1. THE LD CIT(A) HAS ERRED IN TAXING INTEREST INC OME RECEIVED OF RS.11,79,425/- U/S 56 OF THE ACT DESPITE OF THE FAC T THAT THE SAME IS EXEMPT U/S 80P(2)(D) OF THE ACT. IT IS SUBMITTED T HAT THE INTEREST INCOME EARNED OF RS 11,79,425/- ON INVESTMENT MADE WITH CO . OP BANK IS CLEARLY ELIGIBLE FOR DEDUCTION U/S 80P(2)(D) OF THE INCOME TAX ACT, 1961. ON THE FACTS & CIRCUMSTANCES OF THE CASE, THE ADDIT ION MADE ON ACCOUNT OF INTEREST INCOME RECEIVED OF RS.11,79,425/- FROM KAIRA DISTRICT CENTRAL CO. OP. BANK BE DELETED BY ALLOWING THE SAME AS DED UCTION U/S 80P(2)(D) OF THE ACT. THE SAME BE HELD ACCORDINGLY. 8. THE ISSUE IS IDENTICAL AND THE FACTS ARE SIMILAR . THEREFORE, IN CONSONANCE WITH THE VIEW TAKEN IN ITA NO. 1956/AHD/2018 (SUPRA), ITA NOS. 1956 & 1957/AHD/18 [ SAHYOG CO. OP. CREDIT SOCIETY LTD. & ANR. VS. ACIT] - 4 - THE INTEREST INCOME EARNED ON DEPOSITS MADE WITH CO OPERATIVE BANK IS ELIGIBLE FOR DEDUCTION UNDER S.80P(2)(D) OF THE ACT. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . 10. IN THE COMBINED RESULT, APPEALS OF BOTH THE ASS ESSEES ARE ALLOWED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 04/01/2021 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 04/01/2021