Shri Maharana Pratap Co. Op. Credit Society, Baroda V. The Income Tax Officer, Ward-3(1)(5), Baroda

ITA 2015/AHD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5102 (ITAT-AHMEDABAD)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 08-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: T P HEMANI

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ./ ITA NO. 2015/AHD/2017 / ASSESSMENT YEAR: 2014-15 SHRI MAHARANA PRATAP CO-OP. CREDIT SOCIETY 1, NAVI DHARTI RANAVAS PIPLA CHOW, NAGARWADA BARODA PAN : AAEAS 5776 VS ITO, WARD-3(1)(5) BARODA. / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI T.P. HEMANI, AR REVENUE BY : SHRI V.K. SINGH, SR.DR / DATE OF HEARING : 27/06/2018 /DATE OF PRONOUNCEMENT : 01/08/2018 O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST ORDER OF THE LD.CIT(A)- 3, BARODA DATED 1.5.2017 PASSED FOR THE ASSESSMENT YEAR 2014-15. 2. ASSESSEE HAS TAKEN SEVEN GROUNDS OF APPEAL, WHIC H ARE NOT IN CONSONANCE WITH RULE 8D OF THE INCOME-TAX (APPELLAT E TRIBUNAL) RULES. IN BRIEF, THE ISSUE INVOLVED IN THIS APPEAL IS WHET HER THE INTEREST EARNED BY THE ASSESSEE FROM SCHEDULE BANK IS TO BE DISALLO WED FROM GRANT OF DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. ITA NO.2015/AHD/2017 - 2 - 3. THE LD.COUNSEL FOR THE ASSESSEE, AT THE OUTSET C ONCEDED THAT THE ISSUE HAS BEEN DECIDED AGAINST THE ASSESSEE BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF STATE BANK OF INDIA CO-OPERATIVE SOCIETY VS. CIT, 72 TAXMANN.COM 64 (GUJ). IN PRINC IPLE HE AGREED THAT INTEREST INCOME EARNED FROM SCHEDULE BANK IS TO BE EXCLUDED FROM ELIGIBLE COMPUTATION FOR THE PURPOSE OF SECTION 80P (2)(A)(I) OF THE ACT. HOWEVER, HE SUBMITTED THAT ONLY NET INTEREST INCOME IS TO BE EXCLUDED. HE FURTHER CONTENDED THAT THERE ARE DIFFERENT COMPO NENTS ON WHICH 80P WAS ADMISSIBLE TO THE ASSESSEE. THE ASSESSEE HAS W ORKED OUT NET AMOUNT ADMISSIBLE FOR THE PURPOSE OF SECTION 80P(2) OF THE ACT. ONCE THE INTEREST INCOME FROM SCHEDULE BANK IS TO BE DISALLOWED TO TH E ASSESSEE, THEN WHOLE COMPUTATION FOR THE PURPOSE OF 80P(2) IS TO B E MADE AFRESH. THE LD.DR, ON THE OTHER HAND CONTENDED THAT THIS PLEA W AS NOT RAISED BY THE ASSESSEE BEFORE THE AO. 4. ON DUE CONSIDERATION OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT INTEREST INCOME EARNED FROM SCHEDULED BANK WILL NOT QUALIFY FOR GRANT OF DEDUCTION UNDER SECTION 80P(2) IN VIEW OF DECISION OF JURISDICTIONAL HIGH COURT. HOWEVER, WHILE CARRYING OUT THIS EXERCISE, THE LD.AO SHALL RE- COMPUTE THE DEDUCTION ADMISSIBLE UNDER SECTION 80P( 2)(A)(I). THE LD.AO SHALL TAKE INTO CONSIDERATION GROSS RECEIPTS OF THE ASSESSEE FROM ACTIVITIES AND EXAMINE AS TO HOW 80P(2) IS ADMISSIBLE ON DIFFE RENT ITEMS. HE THEREAFTER WOULD COMPUTE ELIGIBLE AMOUNT FOR THE PU RPOSE OF 80P(2) WITHOUT GETTING INFLUENCED FROM THE COMPUTATION OF INCOME SUBMITTED ITA NO.2015/AHD/2017 - 3 - BY THE ASSESSEE. HE SHALL DRAW HIS OWN COMPUTATION ON THE BASIS OF BOOKS OF ACCOUNTS AND THE GROSS RECEIPTS DISCLOSED BY THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 1 ST AUGUST, 2018. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER