ACIT, Erode V. AA-534 Sinniampalayam Primary Agricultural Co-op Society, Erode

ITA 2469/CHNY/2014

• Counselvise Citation: 246921714 RSA 2014
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 08-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 30-09-2014
• Court: TRIBUNAL
• Department Lawyers: B NISCHAL
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.2469 /MDS./2014 ( !' #' / ASSESSMENT YEAR :2010-11) & C.O.NO.132/MDS./2014 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-II, ERODE VS. M/S.AA-534 SINNIAMPALAYAM PRIMARY AGRICULTURAL CO-OP SOCIETY, 2/15,SINNIAMPALAYAM, ERODE 638 104. PAN AAAAT 5153 C ( / APPELLANT ) ( / RESPONDENT/ CROSS OBJECTOR ) $% & ' / APPELLANT BY : MR.B.NISCHAL, JCIT, D.R ()$% & ' / RESPONDENT BY : MR.S.SRIDHAR,ADVOCATE * + & ,- / DATE OF HEARING : 08. 07.2015 .# & ,- /DATE OF PRONOUNCEMENT : 15.07.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE AND THE CROSS O BJECTIONS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX ITA NO.2469 /MDS/2014 2 (A)-I, COIMBATORE DATED 17.07.2014 IN ITA NO.265/13 -14 PASSED UNDER SEC.143(3) READ WITH SECTION SEC. 250 OF THE ACT. 2.1 THE REVENUE HAS RAISED FOUR GROUNDS IN ITS APP EAL, HOWEVER, THE CRUX OF THE ISSUE IS THAT THE LD. CIT (A) HAS E RRED IN ALLOWING THE CLAIM OF THE ASSESSEE FOR ` 25,49,420/- U/S.80P(2)(A)(I) OF THE ACT SINCE A MAJOR PART OF THE INCOME OF THE ASSESSEE IS FROM ADVANCING JEWEL LOANS FROM NON-MEMBERS CATEGORIES AS B CLASS MEMBERS WITH NO VOTING RIGHTS. 2.2 CROSS OBJECTIONS THE ASSESSEE HAS RAISED TWO GROUNDS IN ITS C.O WHIC H ARE IN SUPPORT OF THE ORDER OF THE LD. CIT (A). 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY, ENGAGED I N THE BANKING BUSINESS, FILED ITS RETURN OF INCOME FOR THE ASSESS MENT YEAR 2010-11 ON 24.09.2010 ADMITTING NIL INCOME. SUBSEQUENTLY THE CASE WAS TAKEN UP FOR SCRUTINY AND ORDER WAS PASSED U/S.143( 3) OF THE ACT ON 26.03.2013 WHEREIN THE LD. ASSESSING OFFICER WITHDR EW THE BENEFIT OF ITA NO.2469 /MDS/2014 3 SECTION- U/S.80P(2)(A)(I) OF THE ACT. SUBSEQUENTLY THE LD. CIT (A) ALLOWED THE APPEAL OF THE ASSESSEE FOLLOWING HIS PR EDECESSORS DECISION FOR THE ASSESSMENT YEAR 2009-10 AND THE DE CISION OF THE TRIBUNAL IN THE CASE OF ITO VS. THE KASIPALAYAM PRI MARY AGRICULTURAL CO-OPERATIVE BANK LTD. 4. AT THE OUTSET, LD. A.R. SUBMITTED BEFORE US THA T THE TRIBUNAL HAS UPHELD THE ORDER OF THE LD. CIT (A) FOR THE ASSESSM ENT YEAR 2009-10. LD. D.R COULD NOT CONTROVERT THE SUBMISSIONS OF THE LD. A.R. 5. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD AND THE DECISION OF T HE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009-10 . IT IS APPARENT FROM THE ABOVE THAT THE TRIBUNAL IN ITS ORDER FOR T HE ASSESSMENT YEAR 2009-10 HAD CONFIRMED THE ORDER OF THE LD. CIT (A) IN FAVOUR OF THE ASSESSEE. THEREFORE, WE DO NOT FIND IT NECESSARY T O INTERFERE WITH THE ORDER OF THE LD. CIT (A) FOR THE RELEVANT ASSESSMEN T YEAR 2010-11 ON THE IDENTICAL ISSUE. ACCORDINGLY THE ISSUE IS DECI DED IN FAVOUR OF THE ITA NO.2469 /MDS/2014 4 ASSESSEE. SINCE THE CROSS OBJECTION RAISED BY THE A SSESSEE IS IN SUPPORT OF THE ORDER OF THE LD. CIT (A), IT STANDS TO BE ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED AND CROSS OBJECTION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 15 TH JULY, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 15 TH JULY, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. 7' 8+ /GF