The ITO, Ward-5(1), Baroda V. M/s. The Government Servants Co.Op. Credit Society Ltd., Baroda

ITA 2213/AHD/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8677 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 04-08-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Keywords: Business income
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 2213/AHD/2014 / A.Y. 2011-12 THE INCOME-TAX OFFICER, WARD-5(1), BARODA VS M/S. THE GOVT. SERVANTS CO. OP. CREDIT SOCIETY LTD., BARODA, HINDI BHAVAN, SANSTHA VASAHAT, RAOPURA, BARODA-390001 PAN : AABAT 5146 J / (APPELLANT) / (RESPONDENT) BY REVENUE : SHRI V.K. SINGH, SR DR BY ASSESSEE(S) : NONE (WRITTEN SUBMISSIONS) / DATE OF HEARING : 14/08/2017 /DATE OF PRONOUNCEMENT: 22/08/2017 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER :- THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2011-12 A RISES FROM THE CIT(A)-V, BARODAS ORDER DATED 28.05.2014 IN CA SE NO.CAB/(A)V- 228/13-14, REVERSING THE ASSESSING OFFICERS ACTION DISALLOWING SECTION 80P(2)(A)(I) DEDUCTION OF RS.55,79,632/- IN RESPECT OF INTEREST ON FIXED DEPOSITS WITH BANKS IN ASSESSMENT ORDER DA TED 06.02.2014, IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961; IN SHORT THE ACT. 2. CASES CALLED TWICE. NONE APPEARS AT ASSESSEES B EHEST DESPITE SERVICE OF RPAD NOTICE DATED 03.07.2017. WE FIND TH AT IT HAS FILED WRITTEN SUBMISSIONS DATED 10.08.2017 PLACING ON REC ORD TRIBUNALS ITA NO. 2213/AHD/2014 ITO VS. THE GOVT SERVANTS CO. OP. CREDIT SOCIETY L TD A.Y :- 2011-12 - 2 - DECISION IN ITS OWN CASE IN ITA NO.2221/AHD/2013 UP HOLDING CIT(A)S IDENTICAL ORDER DATED 05.06.2013 IN PRECED ING ASSESSMENT YEAR 2010-11 DELETING A SIMILAR DISALLOWANCE OF SEC TION 80P(2)(A)(I) DEDUCTION REGARDING INCOME DERIVED FROM INTEREST FR OM FIXED DEPOSITS IN BANKS. WE, THEREFORE, PROCEED EX-PARTE AGAINST THE ASSESSEE. 3. THERE IS NO DISPUTE IN FACTS OF THE INSTANT CASE THAT THE ASSESSEE IS A CO-OPERATIVE CREDIT SOCIETY PROVIDING CREDIT F ACILITIES TO MEMBERS. IT HAD DERIVED INTEREST INCOME OF RS.55,79,632/- FR OM STATE BANK OF INDIA, UNION BANK OF INDIA, UCO BANK AND BANK OF BA RODA TO THE TUNE OF RS.24,90,277/-, RS.18,01,933/-, RS.11,90,63 1/- AND RS.96,791/-; RESPECTIVELY IN RESPECT OF SURPLUS FUNDS PARKED IN FIXED DEPOSITS. THE ASSESSING OFFICER FRAMED THE IMPUGNED ASSESSMENT ON 06.02.2014 DISALLOWING THE ASSESSEES ABOVE DEDUCTION CLAIMED ON THE GROUND THAT THE INCOME CONCERNED HAD BEEN DERIVED FROM BAN KS OTHER THAN CO-OPERATIVE BANKS. THE CIT(A), HOWEVER, REVERSED T HE SAME BY FOLLOWING HIS ORDER IN PRECEDING ASSESSMENT YEAR DA TED 05.06.2013. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO TH E REVENUES ARGUMENTS AND PERUSED ASSESSEES WRITTEN SUBMISSION S MAINLY PLACING RELIANCE UPON THIS TRIBUNALS DECISION (SUP RA). WE, HOWEVER, FIND THAT THE SAID CO-ORDINATE BENCH DECISION GOES AGAINST HONBLE JURISDICTIONAL HIGH COURT JUDGMENT IN THE CASE OF S TATE BANK OF INDIA VS. CIT, REPORTED IN (2016) 389 ITR 578, HOLDING TH EREIN THAT INTEREST INCOME DERIVED FROM SURPLUS FUNDS PARKED IN BANK DE POSITS IS NEITHER A BUSINESS INCOME NOR THE ONE DERIVED FROM INVESTMENT IN ITA NO. 2213/AHD/2014 ITO VS. THE GOVT SERVANTS CO. OP. CREDIT SOCIETY L TD A.Y :- 2011-12 - 3 - ANY OTHER CO-OPERATIVE SOCIETY. WE, THEREFORE, FOLL OW THE SAME INSTEAD OF ABOVE QUOTED CO-ORDINATE BENCH DECISION TO REVER SE CIT(A)S FINDINGS UNDER CHALLENGE IN THE IMPUGNED ASSESSMENT YEAR. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE IS, THEREFORE, ACCEPTED. THIS REVENUES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 22 ND AUGUST , 201 7 AT AHMEDABAD SD/- SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER AHMEDABAD; DATED 22/08/2017 *BT ! '! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ' $ / CONCERNED CIT 4. $ ( ) / THE CIT(A) 5. ' **' , ' , / DR, ITAT, AHMEDABAD 6. / / GUARD FILE. / BY ORDER, TRUE COPY / (DY./ASSTT.REGISTRAR) ' (, / ITAT, AHMEDABAD