The ITO, Ward-1, Patan V. Patan Taluka Prathmik Shalaona Shikshako Ni Nana Dhirnari Sahkari Mandli Ltd., Patan

ITA 24/AHD/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5995 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-04-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M G PATEL
• Assessee Lawyers: O P MEENASR
• Keywords: Condonation of delay

Judgement Text

, , , , , , , , IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD C BENCH, AHMEDABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT (AZ) AND SHRI T.R.MEENA, ACCOUNTANT MEMBER ./ I.T.A. NO.24/AHD/2013 ( / / / / ASSESSMENT YEAR : 2009-10) THE ITO WARD-1 PATAN / VS. PATAN TALUKA PRATHMIK SHALAONA SHIKSHAKO NI NANA DHIRNARI SAHAKARI MANDALI LTD. FIRST FLOOR, DEVBHUMI COMPLEX,OPP.S.T.STAND, PATAN384 265 ! ./'# ./ PAN/GIR NO. : AAGFP 7121 F ( $ / // / APPELLANT ) .. ( %&$ / RESPONDENT ) AND CO NO.42/AHD/2014 A.Y. 2009-10 ( IN ITA NO.24/AHD/2013-AY.2009-10 ) PATAN TALUKA PRATHMIK SHALAONA VS. THE ITO SHIKSHAKO NI NANA WARD-1 DHIRNARI SAHAKARI PATAN MANDALI LTD., PATAN ( CROSS OBJECTOR ) .. ( RESPONDENT ) ASSESSEE BY : SHRI O.P. MEENA,SR.DR REVENUE BY : SHRI M.G.PATEL, A.R. '( ) *+! / / / / DATE OF HEARING : 23/04/2014 ,- ) *+! / DATE OF PRONOUNCEMENT : 02/05/2014 . / O R D E R PER SHRI G.C.GUPTA, VICE PRESIDENT (AZ) : THIS APPEAL BY THE REVENUE AND THE CROSS OBJECTI ON BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF LD.CIT( A)-GADHINAGAR DATED 25/10/2012 FOR THE ASST.YEAR 2009-10. THESE WERE H EARD TOGETHER AND ITA NO.24/AHD/2013 (BY REVEN UE) CO NO.42/AHD/2014 (BY ASSESSEE) ITO VS. PATAN TAL.PRATHMIK SHALAONA SHIKSHAKO-NI- NANA DHIRNARI SAHAKARI MANDALI LTD. ASST.YEAR 2009-10 - 2 - ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FO R THE SAKE OF CONVENIENCE. ITA NO.24/AHD/2013 (REVENUES APPEAL) 2. THE ONLY GROUND OF REVENUES APPEAL READS AS UND ER:- 1. THE LEARNED CIT(APPEALS) HAS ERRED IN LAW AND ON FA CTS IN ALLOWING DEDUCTION U/S.80P(2)(A)(I) OF THE IT ACT A MOUNTING TO RS.24,07,397/-. 2.1. THE LD.SR.DR HAS RELIED ON THE ORDER OF THE AS SESSING OFFICER. HE REFERRED TO THE RELEVANT PORTION OF THE ASSESSMENT ORDER IN SUPPORT OF THE CASE OF THE REVENUE. HE SUBMITTED THAT THE ASSESSE E-SOCIETY WAS NOT COVERED UNDER THE AGRICULTURAL CREDIT SOCIETY AS TH EIR BYE-LAWS DOES NOT PERMIT TO PROVIDE THE FINANCE FACILITIES FOR THE AG RICULTURAL PURPOSES ONLY. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IN THE GROUND OF APPEAL OF THE REVENUE IS COVERED IN FAVOUR OF ASSES SEE WITH THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT V S. JAFARI MOMIN VIKAS CO-OP.CREDIT SOCIETY LTD. REPORTED AT 362 ITR 331 (GUJ.), WHEREIN IN SIMILAR FACTS, IT WAS HELD THAT THE ASSESSEE WAS ENTITLED TO DEDUCTION U/S.80P OF THE IT ACT, 1961. HE RELIED ON THE ORDE R OF THE CIT(A). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AS WELL AS THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CI T VS. JAFARI MOMIN VIKAS CO-OP.CREDIT SOCIETY LTD.(SUPRA). WE FIND TH AT THE ISSUE IN THIS CASE IS COVERED IN FAVOUR OF ASSESSEE WITH THE DECI SION OF HONBLE ITA NO.24/AHD/2013 (BY REVEN UE) CO NO.42/AHD/2014 (BY ASSESSEE) ITO VS. PATAN TAL.PRATHMIK SHALAONA SHIKSHAKO-NI- NANA DHIRNARI SAHAKARI MANDALI LTD. ASST.YEAR 2009-10 - 3 - JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. JA FARI MOMIN VIKAS CO- OP. CREDIT SOCIETY LTD.(SUPRA). THE UNDISPUTED FAC TS OF THE CASE ARE THAT THE ASSESSEE WAS NOT ALLOWED TO DO BANKING BUSINESS AS DEFINED UNDER BANKING REGULATION ACT AND, THEREFORE, IS NOT A CO- OPERATIVE BANK AND ACCORDINGLY IS NOT EXCLUDED FROM THE BENEFIT OF DED UCTION U/S.80P(2)(A)(I) OF THE IT ACT,1961 AS IT DOES NOT FALL UNDER THE E XCEPTIONS AS PROVIDED U/S.80P(4) OF THE ACT. THE CIT(A) HAS CITED CERTAI N DECISIONS OF THE ITAT, WHEREIN VARIOUS BENCHES OF THE ITAT HAVE DECI DED THE ISSUE IN FAVOUR OF ASSESSEE. THERE BEING NO MISTAKE IN THE ORDER OF THE CIT(A) ON THIS ISSUE, THE SAME IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE IS DISMISSED. CO NO.42/AHD/2014 (BY ASSESSEE) 4. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE CROSS-OBJECTION OF THE ASSESSEE WAS LATE BY ONE YEAR AND TEN MONTHS AND HAS FILED AN AFFIDAVIT OF THE ASSESSEE SUBMITTING THAT IT HAS NO W COME TO THE ASSESSEES KNOWLEDGE THAT THE HONBLE JURISDICTIONA L HIGH COURT IN THE CASE OF CIT VS. JAFARI MOMIN VIKAS CO-OP. CREDIT SO CIETY LTD.(SUPRA) VIDE THEIR DATED 15/01/2014 HAVE DECIDED THE ISSUE OF DEDUCTION U/S.80P(2)(A)(I) OF THE IT ACT IN FAVOUR OF ASSESSE E. 4.1. THE LD.SR.DR HAS OPPOSED THE SUBMISSION OF THE LD.COUNSEL FOR THE ASSESSEE ON THE ISSUE OF CONDONATION OF DELAY IN FI LING THE CROSS-OBJECTION BY THE ASSESSEE. ITA NO.24/AHD/2013 (BY REVEN UE) CO NO.42/AHD/2014 (BY ASSESSEE) ITO VS. PATAN TAL.PRATHMIK SHALAONA SHIKSHAKO-NI- NANA DHIRNARI SAHAKARI MANDALI LTD. ASST.YEAR 2009-10 - 4 - 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN THE FACTS OF THE CASE AND IN VIEW OF THE RECENT DECISION OF THE HONBLE J URISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. JAFARI MOMIN VIKAS CO- OP. CREDIT SOCIETY LTD.(SUPRA), WE HOLD THAT IT IS A FIT CASE FOR COND ONATION OF DELAY IN FILING THE CROSS-OBJECTION BY THE ASSESSEE, WHICH IS ACCOR DINGLY CONDONED. 6. THE ONLY GROUND RAISED IN ASSESSEES CROSS-OBJEC TION READS AS UNDER:- 1. THE LEARNED CIT(A)-IV, BARODA HAS ERRED IN NOT ALLOWING DEDUCTION U/S.80P(2)(A)(I) IN RESPECT OF INTEREST O F RS.5,52,119/-. 7. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ASSESSEES DEPOSITS WERE REQUIRED FOR BUSINESS PURPOSE ONLY AS SOME LIQUIDITY OF FUNDS HAVE TO BE MAINTAINED BY THE ASSESSEE. HE SUBMITTED THAT WITH THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT VS. JAFARI MOMIN VIKAS CO-OP. CREDIT SOCIETY LTD.(SUPRA ), THE PART OF THE ADDITION IN RESPECT OF INTEREST AMOUNTING TO RS.5,5 2,119/- BY NOT ALLOWING THE DEDUCTION U/S.80P(2)(A)(I) OF THE ACT BY THE CI T(A) SHOULD ALSO BE DELETED. THE LD.SR.DR HAS OPPOSED THE SUBMISSION OF THE LD.COUNSEL FOR THE ASSESSEE AND HE RELIED ON THE ORDERS OF THE AO AND CIT(A) ON THIS ISSUE. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT THERE IS NO FINDING ON FACT THAT WHETHER THE DEPOSITS WERE M AINTAINED BY THE ASSESSEE FOR LIQUIDITY OF FUNDS FOR THE BUSINESS PU RPOSE OF THE ASSESSEE ITA NO.24/AHD/2013 (BY REVEN UE) CO NO.42/AHD/2014 (BY ASSESSEE) ITO VS. PATAN TAL.PRATHMIK SHALAONA SHIKSHAKO-NI- NANA DHIRNARI SAHAKARI MANDALI LTD. ASST.YEAR 2009-10 - 5 - AND WHETHER THE RATIO OF THE DECISION OF HONBLE JU RISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. JAFARI MOMIN VIKAS CO- OP. CREDIT SOCIETY LTD.(SUPRA) IS APPLICABLE TO THE PART OF DEDUCTION U/S.80P(2)(A)(I) OF THE ACT IN RESPECT OF INTEREST AMOUNTING TO RS.5,52,119 /- AND ACCORDINGLY THE ISSUE RAISED IN THE CROSS-OBJECTION OF THE ASSESSE E IS RESTORED TO THE FILE OF AO TO DECIDE AFRESH IN ACCORDANCE WITH LAW ON MERIT S, AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE DIRECT ACCORDINGLY. 9. IN THE COMBINED RESULT, THE APPEAL OF THE REVENU E IS DISMISSED, WHEREAS THE CROSS-OBJECTION FILED BY THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- ( T.R. MEENA ) ( G.C. GUPTA ) ACCOUNTANT MEMBER VICE PRESID ENT (AZ) AHMEDABAD; DATED 2/ 5 /2014 /+.., .../ T.C. NAIR, SR. PS . ) %*0 1 0* . ) %*0 1 0* . ) %*0 1 0* . ) %*0 1 0*/ COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. %&$ / THE RESPONDENT. 3. * '2 / CONCERNED CIT 4. '2() / THE CIT(A)-GANDHINAGAR 5. 056 %* , , / DR, ITAT, AHMEDABAD 6. 67 8( / GUARD FILE. .' .' .' .' / BY ORDER, &0* %* //TRUE COPY// 9 99 9/ // / ' ' ' ' ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD