Badagabettu Credit Co-operative Society Limited, Udupi V. Principal Commissioner of Income Tax (Central), Bangalore

ITA 244/BANG/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3379 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-10-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 14-06-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Search and seizure; Opportunity of being heard; Set aside
• Section: 263; 132; 143(3); 153A; 80P; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES B BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER AND S MT BEENA PILLAI, JUDICIAL MEMBER ITA NO S . 243 TO 245 /BANG/20 21 ASSESSMENT YEAR S : 20 1 5 - 16 TO 2017 - 18 M/S. BADAGABETTU CREDIT CO - OP. SOCIETY LTD., H. O.: CHETHANA, MISSION COMPOUND, UDUPI 576 101. PAN: AAAAB3065F VS. THE PRINCIPAL COMMISSIONER OF INCOME - TAX (CENTRAL), BANGALORE. (APPELLANT) (RESPONDENT) A SSESSEE BY : SHRI MAHESH R. UPPIN, ADVOCATE REVENUE BY : SHRI MUZAFFAR HUSSAIN, CIT (DR) DATE OF HEARING : 0 5 . 10 .2021 DATE OF PRONOUNCEMENT : 14 . 10.2021 ORDER PER BEENA PILLAI , J UDICIAL M EMBER PRESENT APPEALS HAS BEEN FILED BY ASSESSEE AGAINST SEPARATE ORDERS DATED 29/03/21 PASSED BY THE LD.PR.CIT UNDER SECTION 263 OF THE ACT. IT HAS BEEN SUBMITTED THAT THE FACTS, CIRCUMSTANCES AND ISSUES RAISED BY ASSESSEE IN ALL THESE APPEALS ARE COMMON AND IDENTICAL. PAGE 2 OF 3 IT A NOS. 243 TO 245 / BANG/20 21 WE HAVE HE ARD BOTH SIDES AND PERUSED THE RECORDS PLACED BEFORE US. 3. IT IS OBSERVED THAT ASSESSEE CLAIMED D EDU CTION UNDER SECTION 80P OF THE A CT. SUBSEQUENTLY , SEARCH AND SEIZURE OPERATION UNDER SECTION 132 WAS CONDUCTED IN THE BUSINESS PREMISES OF ASSOCIATES AND ORDER UNDER SECTION 143(3) READ WITH SECTION 153A OF THE ACT WAS PASSED ON 20/12/2018 PROCESSING TOTAL INCOME AT 3,08,280/ - . ON PERUSAL OF THE ASSESSM ENT RECORD, THE LD.PR.CIT WAS OF THE OPINION THAT ASSESSMENT ORDER PASSED WAS ERRONEOUS INSOFAR AS PREJUDICIAL TO THE INTEREST OF THE REVENUE. ACCORDINGLY , SHOW CAUSE NOTICE UNDER SECTION 263 OF THE ACT WAS ISSUED ON 07/01/2021. THE LD.PR.CIT OBSERVED THAT , ASSESSEE HAS MORE ASSOCIATE MEMBERS THAN THE PRESCRIBED LIMIT AND IS ALSO LENDING LOANS TO NOMINAL MEMBERS THEREBY VIOLATING THE REGULATORY A CT AND IS NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80P OF THE ACT. 4 . IN THE SUBMISSIONS, ASSESSEE RELIED ON THE DECISION OF HONBLE SUPREME COURT IN CASE OF MAVILAYI SERVICE COOPERATIVE BANK LTD VS. CIT, CALICUT REPORTED IN (2021) 123 TAXMEN.COM 161 . AFTER PERUSING SUBMISSIONS ADVANCED BY ASSESSING, THE LD. PR . CIT HELD AS UNDER: 8. ON THE BASIS OF THE ABOVE MADE DISCUSSIONS, I HOLD THAT THE ASSESSMENT ORDER PASSED BY THE A.O. IS ERRONEOUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE WITHIN THE MEANING OF CLAUSE (A) & (B) OF EXPLANATION (2) TO SECTION 263 OF THE INCOM E - TAX ACT, 1961. ACCORDINGLY, THE ASSESSMENT ORDER DATED 28.12.2018 PASSED U/S 143(3) RWS 153A OF THE INCOME TAX ACT, 1961 IS SET ASIDE TO THE FILE OF ASSESSING OFFICER WITH A DIRECTION TO PASS A FRESH ORDER AS PER THE PROVISIONS OF THE KARNATAKA COOPERATI VE SOCIETIES ACT, 1959 AND AS PER THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT OF INDIA IN ITS DECISIONS IN THE CASES OF MAVILAYI SERVICE CO - OPERATIVE BANK LTD VS. COMMISSIONER OF INCOME - TAX, CALICUT [2021] 123 TAXMA NN.COM 161(SC) AND CITIZEN CO - OPERATIVE SOCIETY LTD, (2017] 397 ITR 1 (SC). PAGE 3 OF 3 IT A NOS. 243 TO 245 / BANG/20 21 THE ASSESSING OFFICER WILL GRANT SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND PASS A SPEAKING ORDER AFTER DEALING WITH ALL THE SUBMISSIONS MADE BY THE ASSESSEE. 5. WE NOTE THAT THE LD.PR.CIT DIRECTED THE LD.AO TO CONSIDER THE ISSUES IN THE LIGHT OF THE PRINCIPLES LAID DOWN BY HONBLE SUPREME COURT IN CASE OF MAVILAYI SERVICE COOPERATIVE BANK LTD VS. CIT, CALICUT (SUPRA). WE DO NOT FIND ANY INFIRMITY IN THE ABOVE DIRECT ION OF THE LD.PR CIT. ACCORDINGLY , GROUNDS RAISED BY ASESSEE IN ALL THE APPEALS STANDS DISMISSED AND THE ORDER PASSED BY THE L D.PR.CIT STANDS UPHELD. IN THE RESULT APPEALS FILED BY ASSESSEE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 1 4 T H OCTOBER, 2021. S D / - S D / - ( CHANDRA POOJARI ) ( BEENA PILLAI ) ACCOUNTANT MEMBER J UDICIAL MEMBER DATED: 1 4 T H OCTOBER, 2021. /MS/ COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE