M/s Kalyan Credit Co-operative Society Limited , BAngalore V. Income Tax Officer Ward-3(2)(3), Bangalore

ITA 2225/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6012 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 19-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARUPPUSAMY S. R.
• Assessee Lawyers: C. V. MUDRABETTU
• Keywords: Opportunity of being heard
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL BANGALORE BENCH SMC-C, BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNANT MEMBER ITA NO. 2225 (BANG) 2018 (ASSESSMENT YEAR : 2015 16) M/S. KALYAN CREDIT CO OPERATIVE SOCIETY LIMITED, NO. 1122, RPC LAYOUT, SERVICE ROAD, VIJAYNAGAR, 2 ND STAGE, BANGALORE 560040. PAN. AACAK7890B APPELLANT VS THE ITO, WARD 3 (2)(3), BANGALORE. RES PONDENT ASSESSEE BY : SHRI C. V. MUDRABETTU REVENUE BY : SHRI KARUPPUSAMY S. R., ADDL. CIT (DR) DATE OF HEARING : 01-08-2018 DATE OF PRONOUNCEMENT : 03-08-2018 O R D E R PER A. K. GARODIA, A.M.: THIS APPEAL IS FILED BY THE ASSESSEE AND IT IS DIR ECTED AGAINST THE ORDER OF CIT (A) 3 BANGALORE DATED 22.05.2018 FOR A. Y. 2015 16. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS BUR THE ASSESSEE HAS ONLY ONE GRIEVANCE I.E. DISALLOWANCE OF THE ASSESSEES CLAIM FOR DEDUCTION U/S 80P OF RS. 18,52,120/-. 3. LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE IS SUE INVOLVED IN THIS APPEAL IS COVERED BY THE JUDGMENT OF HONBLE KARNATAKA HIGH C OURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO OPERATIVE LT D. VS. ITO AS REPORTED IN 230 TAXMAN 309. 4. LEARNED DR OF THE REVENUE PLACED RELIANCE ON ANO THER JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF PCIT V S. TOTGARS CO OPERATIVE ITA NO. 2225(BANG)2018 2 SALE SOCIETY AS REPORTED IN 395 ITR 611. HE ALSO PL ACED RELIANCE ON A JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF CITIZ EN CO OPERATIVE SOCIETY LIMITED VS. ACIT AS REPORTED IN 84 TAXMAN. COM 114. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORDS. I FEEL IT PROPER TO RESTORE THIS MATTER BACK TO THE FILE OF AO FOR A FRESH DECISION AFTER EXAMINING THE FACTS OF T HE PRESENT CASE IN THE LIGHT OF TWO JUDGMENTS OF HONBLE KARNATAKA HIGH COURT RENDE RED IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO OPERATIVE LTD. VS. ITO (SUPRA) AND IN THE CASE OF PCIT VS. TOTGARS CO OPERATIVE SALE SOCI ETY (SUPRA) BECAUSE THE JUDGMENT IN THESE TWO CASES ARE NOT IN CONFLICT BUT THE ULTIMATE CONCLUSION IS DIFFERENT BECAUSE FACTS ARE DIFFERENT. IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO OPERATIVE LTD. VS. ITO (SUPRA), THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE BECAUSE IN THAT CASE, IT WAS FOUND THAT THE MONEY DEPOSITED IN BANK WAS OUT OF OWN FUNDS AND NOT OUT OF LIABILITY OF THE ASSESSEE. BUT IN THE CASE OF PCIT VS. TOTGARS CO OPERATIVE SA LE SOCIETY (SUPRA), THE ISSUE WAS DECIDED IN FAVOUR OF THE REVENUE BECAUSE IN THA T CASE, IT WAS FOUND THAT THE MONEY DEPOSITED IN BANK WAS OUT OF LIABILITY OF THE ASSESSEE AND NOT OUT OF OWN FUNDS OF THE ASSESSEE. THE AO IS DIRECTED THAT IF IT IS FOUND THAT THE FACTS IN THE PRESENT CASE ARE IN LINE WITH THE FACTS IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO OPERATIVE LTD. VS. ITO (SUPRA), THE ISSUE SHOULD BE DECIDED IN FAVOUR OF THE ASSESSEE BUT IF IT IS FOUND THAT T HE FACTS IN THE PRESENT CASE ARE IN LINE WITH THE FACTS IN THE CASE OF PCIT VS. TOTG ARS CO OPERATIVE SALE SOCIETY (SUPRA), THE ISSUE SHOULD BE AGAINST THE ASSESSEE. I ALSO DIRECT THE AO TO EXAMINE THE FACTS OF THE PRESENT CASE IN THE LIGHT OF THE JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF CITIZEN CO OPE RATIVE SOCIETY LIMITED VS. ACIT (SUPRA) AND IF IT IS FOUND THAT THIS JUDGMENT IS APPLICABLE IN THE PRESENT CASE, THAN OBVIOUSLY, THE ISSUE HAS TO BE DECIDED A GAINST THE ASSESSEE. NEEDLESS TO SAY, THE ORDER SHOULD BE A SPEAKING AND REASONED ORDER AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. ITA NO. 2225(BANG)2018 3 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DA TE MENTIONED ON THE CAPTION PAGE. SD/- (A. K. GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED: 03.08.2018. MS* 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.