Singur Thana Large Sized Primary Agriculture Co-Op. Marketing Society ltd., Kolkata V. A.C.I.T -CPC,Bangalore, Bangalore

ITA 2397/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4823 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 29-04-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 25-09-2013
• Court: TRIBUNAL
• Assessee Lawyers: SHTRI V N PUROHIT
• Section: 154

Judgement Text

I.T.A. NO. 2397/KOL./2013 ASSESSMENT YEAR: 2010-2011 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 2397 /KOL/ 2013 ASSESSMENT YEAR: 2010-2011 SINGUR THANA LARGE SIZED PRIMARY AGRICULTURE CO-OPERATIVE MARKETING SOCIETY LIMITED,............ ........................APPELLANT C/O. V.N. PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBERS, UNIT-III, 4 TH FLOOR, SUIT NO. 4G, 4, CHOWRINGHEE LANE, KOLKATA-700 016 [PAN : AABAS 0029 B] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. ......................RESPONDENT CPC, BANGALORE, P.B. NO. 2, ELECTRONIC CITY, BANGALORE-560 100 APPEARANCES BY: SHTRI V.N. PUROHIT, FCA, FOR THE ASSESSEE SHRI ASHOK KUMAR, JCIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : APRIL 29, 2016 DATE OF PRONOUNCING THE ORDER : MAY 27, 2016 O R D E R PER SHRI P.M. JAGTAP :- THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER O F LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXXVI, KOLKATA DATED 28.08.2013 FOR THE ASSESSMENT YEAR 2010-11, WHEREBY HE UPHELD THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 154 DECLINING T O RECTIFY THE INTIMATION ISSUED UNDER SECTION 143(1) ON THE ISSUE OF ASSESSE ES CLAIM FOR DEDUCTION UNDER SECTION 80P. 2. THE ASSESSEE IN THE PRESENT CASE IS A FARMERS C OOPERATIVE SOCIETY REGISTERED AND GOVERNED UNDER THE PROVISIONS OF WES T BENGAL COOPERATIVE I.T.A. NO. 2397/KOL./2013 ASSESSMENT YEAR: 2010-2011 PAGE 2 OF 4 SOCIETIES ACT, 1983. ITS OBJECTS ARE TO PROVIDE NUM BER OF FACILITIES LIKE LOAN TO MEMBER FARMERS, SUPPLY OF AGRICULTURAL EQUI PMENTS, SEEDS, FERTILIZERS, ETC. TO FARMERS AND OTHER MATERIALS NE EDED BY THEM AT REASONABLE RATE. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS E-FILED BY IT AND WHILE FEEDING THE RELEVANT DE TAILS IN THE COMPUTER, A MISTAKE WAS COMMITTED BY THE OFFICE STAFF/TAX ADVIS OR OF THE ASSESSEE- SOCIETY IN CLAIMING THE DEDUCTION UNDER CHAPTER-VI- A AT NIL INSTEAD OF RS.48,31,301/-. CONSEQUENTLY THE FIGURE OF TOTAL IN COME IN THE RETURN FILED ON-LINE APPEARED AT RS.48,31,301/- INSTEAD OF NIL . AFTER NOTICING THIS MISTAKE IN THE E-RETURN FILED ON 29.03.2001, HARD C OPY OF THE RETURN OF INCOME WAS FILED BY THE ASSESSEE IN THE OFFICE OF T HE ASSESSING OFFICER ON 31.03.2011 CLAIMING DEDUCTION UNDER CHAPTER-VI-A AN D SHOWING TOTAL INCOME AT NIL. THE RETURN FILED BY THE ASSESSEE O NLINE, HOWEVER, WAS PROCESSED BY CPC, BANGALORE AND IN THE INTIMATION I SSUED UNDER SECTION 143(1) ON 10.05.2011, TOTAL INCOME OF THE ASSESSEE WAS SHOWN AT RS.48,31,301/- AS WRONGLY MADE IN THE RETURN FILED ONLINE AND CONSEQUENTLY A DEMAND OF RS.18,11,841/- WAS RAISED. THE ASSESSEE, THEREFORE, FILED A PETITION UNDER SECTION 154 FOR R ECTIFICATION OF THE INTIMATION ISSUED UNDER SECTION 143(1). THE SAID PE TITION, HOWEVER, WAS DISMISSED BY THE ASSESSING OFFICER ON THE GROUND TH AT THERE BEING NO MISTAKE COMMITTED WHILE PROCESSING THE RETURN FILED BY THE ASSESSEE ONLINE, THE INTIMATION ISSUED UNDER SECTION 143(1) COULD NOT BE RECTIFIED. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 154 REJECTING ITS APPLICATION FOR RECTIFICATION OF THE INTIMATION UNDER SECTION 143(1), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) AND AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSESSEE AND THE MATERIAL AVAILABLE ON RECORD, THE LD. CIT(A PPEALS) UPHELD THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 154 OBSERVING THAT THERE BEING NO MISTAKE COMMITTED WHILE PROCESSING T HE RETURN FILED BY THE ASSESSEE ELECTRONICALLY, THERE WAS NO QUESTION OF ANY RECTIFICATION OF THE INTIMATION ISSUED UNDER SECTION 143(1). AGGRIEV ED BY THE ORDER OF THE I.T.A. NO. 2397/KOL./2013 ASSESSMENT YEAR: 2010-2011 PAGE 3 OF 4 LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS A PPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE ASSESESE BEING A COOPERATIVE SOCIETY IS ENTITLED TO DEDUCTION UNDER SECTION 80P IN RESPECT OF ITS TOTAL INCOME AMOUNTIN G TO RS.48,31,301/-. THE DISPUTE IS WHETHER THE CLERICAL MISTAKE COMMITT ED BY THE OFFICE STAFF OF THE TAX ADVISOR OF THE ASSESSEE IN NOT CLAIMING SUCH DEDUCTION WHILE FILING THE RETURN ONLINE CAN BE CORRECTED BY RECTIF YING THE INTIMATION ISSUED UNDER SECTION 143(1). IN THIS REGARD, IT IS OBSERVED THAT A SIMILAR ISSUE WAS INVOLVED IN THE CASE OF SHRIKANT REAL EST ATES (P) LIMITED VS.- ITO (ITA NO. 4304/MUM/2012 DATED 19.10.2012) BEFORE THE MUMBAI BENCH OF THIS TRIBUNAL AND THE SAME WAS DECIDED BY THE TRIBUNAL IN FAVOUR OF THE ASSESSEE FOR THE FOLLOWING REASONS GI VEN IN PARAGRAPHS NO. 7 & 8 OF ITS ORDER:- 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE COPY OF THE REVISED E -RETURN FILED BY THE ASSESSEE. IN THE PRESENT SYSTEM OF E-FILING OF RETURN WHICH IS TOTALLY DEPENDED UPON THE USAGE OF SOFTWARE, IT IS POSSIBLE THAT SOME CLERICAL ERRORS MAY OCCUR AT THE TIME OF ENTER ING THE DATA IN THE ELECTRONIC FORM. THE RETURN IS PREPARED ELECTRO NICALLY WHICH IS CONVERTED INTO AN XML FILE EITHER THROUGH THE FREE DOWN LOADED SOFTWARE PROVIDED BY THE CBDT OR BY THE SOFTWARES A VAILABLE IN THE MARKET. IN EITHER OF THE CASE, THERE IS EVERY POSSI BILITY OF ENTERING INCORRECT DATA WITHOUT HAVING THE EXPERT KNOWLEDGE OF PREPARING AN XML FILE. XML FILE SO CREATED IS UPLOADED TO THE OFFICIAL WEBSITE I.E.WWW.LNCOMETAXINDIAEFILING.GOV.IN. ONCE THE RETU RN IS UP LOADED ITR- V, WHICH IS THE ACKNOWLEDGEMENT OF THE RETURN SO FILED, IS GENERATED BY THE SYSTEM ITSELF AND IF, THE RETURN I S NOT SIGNED DIGITALLY, THEN ITR- V SO GENERATED HAS TO BE SIGNE D AND SENT TO CENTRAL PROCESSING CENTRE, BANGLURU WITHIN 120 DAYS . 8. KEEPING IN MIND THIS SYSTEM OF E-FILING OF THE R ETURNS, COMING BACK TO THE FACTS OF THE CASE. WE FIND THAT THE ASS ESSEE HAS CLAIMED SHORT TERM CAPITAL GAINS AND HAS SHOWN IT IN THE RE VISED E-RETURN BUT THE SAME FIGURE DID NOT APPEAR UNDER THE ITEM W HERE THE SHORT TERM CAPITAL GAIN IS TO BE TAXED AT SPECIAL RATE U/ S. ILIA OF THE ACT I.E. INTERNAL PAGE-19 OF THE RETURN UNDER SCHEDULE CG - CAPITAL GAINS UNDER ITEM NO. 7. HOWEVER, AT THE SAME TIME W E FIND THAT UNDER SCHEDULE SI-INCOME CHARGEABLE TO INCOME TAX A T SPECIAL RATES IB WHICH IS AT INTERNAL P-24 OF THE RETURN, THE ASS ESSEE HAS SHOWN SHORT TERM CAPITAL GAINS (IIIA) SPECIAL RATE 10% IN COME RS. I.T.A. NO. 2397/KOL./2013 ASSESSMENT YEAR: 2010-2011 PAGE 4 OF 4 2,65,853/- TAX THEREON RS.26585/- WHICH CLEARLY EST ABLISHES THAT THE ASSESSEE HAS SHOWN SHORT TERM CAPITAL GAINS LIA BLE TO BE TAXED AT SPECIAL RATE OF 10%. ACCORDINGLY, REVERSING THE FINDING OF THE LD. CIT(A), WE DIRECT THE AO TO ALLOW CREDIT OF THE SHO RT TERM CAPITAL GAINS SUBJECT TO SPECIAL RATE OF TAX AS PER PROVISI ONS OF SEC. III A OF THE ACT AND RECTIFY THE INTIMATION U/S, 143( I) ACC ORDINGLY. 5. AS THE ISSUE INVOLVED IN THE PRESENT CASE AS WEL L AS ALL THE MATERIAL FACTS RELEVANT THERETO ARE SIMILAR TO THE CASE OF M /S. SHRIKANT REAL ESTATES (P.) LIMITED (SUPRA), WE RESPECTFULLY FOLLOW THE DE CISION OF THE COORDINATE BENCH OF THIS TRIBUNAL RENDERED IN THE SAID CASE AN D DIRECT THE ASSESSING OFFICER TO RECTIFY THE INTIMATION ISSUED UNDER SECT ION 143(1) AS SOUGHT BY THE ASSESSEE THEREBY ALLOWING ITS CLAIM FOR DEDUCTI ON UNDER SECTION 80P. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 27, 2016. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 27 TH DAY OF MAY, 2016 COPIES TO : (1) SINGUR THANA LARGE SIZED PRIMARY AGRICULTURE CO-OPERATIVE MARKETING SOCIETY LIMITED, C/O. V.N. PUROHIT & CO., CHARTERED ACCOUNTANTS, DIAMOND CHAMBERS, UNIT-III, 4 TH FLOOR, SUIT NO. 4G, 4, CHOWRINGHEE LANE, KOLKATA-700 016 (2) ASSISTANT COMMISSIONER OF INCOME TAX, CPC, BANGALORE, P.B. NO. 2, ELECTRONIC CITY, BANGALORE-560 100 (3) COMMISSIONER OF INCOME TAX (APPEALS)-XXXVI, KOL KATA, (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.