DCIT, BIKANER V. M/s. Hanumangarh Kendriya Sahakari Bank Ltd., HANUMANGARH JUNCTION

ITA 248/JODH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5196 (ITAT-JODHPUR)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 15-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MOURYA

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE: SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A.NO.248/JODH/2015 ASSESSMENT YEAR: 2008-09 THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-2, RANI BAZAR, BIKANER VS. M/S. HANUMANGARH KENDRIYA SAHAKARI BANK LTD., OPP. CIRCUIT HOUSE, HANUMANGARH JN. PAN :AAAJH0302C APPELLANT RESPONDENT APPELLANT BY SHRI S. L. MOURYA, D.R. RESPONDENT BY NONE DATE OF HEARING: 16.03.2016 DATE OF PRONOUNCEMENT: 16.03.16 O R D E R PER: GEORGE MATHAN, J.M. : THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT (A), BIKANER DATED 05-03-2015 PASSED IN APPEAL NO.7 8/BKN/2013-14 FOR ASSESSMENT YEAR 2008-09 AGAINST CANCELLATION OF PEN ALTY LEVIED U/S 271 (1) (C) OF THE IT ACT. 2. MR. S. L. MOURYA LEARNED DR REPRESENTED ON BEHA LF OF THE REVENUE AND NONE REPRESENTED ON BEHALF OF THE ASSESSEE. 2 ITA NO.248/JODH/2015 3. THE LEARNED AR OF THE ASSESSEE SOUGHT FOR ADJOUR NMENT ON THE GROUND THAT HE WAS SUFFERING FROM ACUTE FEVER. HOWEVER, IT IS NOTICED THAT THE LEARNED ARS REQUEST FOR ADJOURNMENT IS DATED 05-03-2016 WH ICH WAS RECEIVED IN THE OFFICE OF THE TRIBUNAL ON 08-03-2016 SEEKING ADJOUR NMENT FOR 16-03-2016. AS THE ADJOURNMENT APPLICATION IS NOT CONVINCING IN RE SPECT OF THE ISSUE OF ACUTE FEVER, THE SAME IS REJECTED AND THE APPEAL IS TAKEN FOR ADJUDICATION. 4. IT WAS SUBMITTED BY THE LEARNED DR THAT THE ASSE SSEE HAD CLAIMED DEDUCTION U/S 80P (2) (D) OF THE ACT BUT THE SAME W AS DENIED BY THE AO. CONSEQUENTLY, THE AO LEVIED PENALTY U/S 271 (1) (C) OF THE ACT. IT WAS A SUBMISSION THAT THE CO-ORDINATE BENCH OF THIS TRIBU NAL HAD REVERSED THE VIEW AND HAD HELD THAT THE CO-OPERATIVE SOCIETY WHICH IS DOING THE BUSINESS OF BANKING CAN INVEST SURPLUS FUNDS IN ANOTHER CO-OPER ATIVE SOCIETY IN ORDER TO EARN INTEREST/DIVIDEND AND CAN SHOW THE SAME AS INC OME FROM OTHER SOURCES AND IS ELIGIBLE FOR DEDUCTION U/S 80P (2) (D) OF THE ACT. IT WAS ALSO A SUBMISSION THAT THE CO-ORDINATE BENCH OF THIS TRIBU NAL HAD IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009-10 AND THE LEARNE D CIT (A) FOR ASSESSMENT YEARS 2010-11 AND 2011-12 HAD HELD THE I SSUE IN FAVOUR OF THE ASSESSEE ON MERITS. IT WAS A SUBMISSION THAT CONSEQ UENTLY THE LEARNED CIT (A) HAD DELETED THE PENALTY LEVIED U/S 271 (1) (C) OF THE ACT. 3 ITA NO.248/JODH/2015 5. WE HAVE HEARD THE SUBMISSIONS. AS IT IS NOTICED THAT THE LEARNED CIT (A) HAS DELETED THE PENALTY ON THE GROUND THAT THE ISSUE ON MERITS HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE AND AS THESE ORDE RS HAVE NOT BEEN REVERSED, WE ARE OF THE VIEW THAT CANCELLATION OF P ENALTY BY THE LEARNED CIT (A) IS ON RIGHT FOOTING AND DOES NOT CALL FOR ANY I NTERFERENCE. 6. EVEN OTHERWISE, THE ISSUE BEING A DEBATABLE ISSU E AND INTERPRETATION OF THE STATUTE ISSUE, IT CANNOT BE SAID THAT THE AS SESSEE HAD CONCEALED ITS PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTI CULARS OF ITS INCOME. EVEN ON THIS GROUND, NO PENALTY IS LEVIABLE ON THE ASSES SEE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16.03.2016. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, DATED: 16 TH MARCH, 2016 LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA DEKA/ DEKA/ DEKA/ DEKA/- -- - COPY OF THE ORDER FORWARDED TO: 1 . THE APPELLANT 2. THE RESPONDENT 3. CIT CONCERNED 4. CIT (A) CONCERNED 5. DR, ITAT, JODHPUR 6. GUARD FILE BY ORDER, SR. PRIVATE SECRETARY 4 ITA NO.248/JODH/2015 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 16.03.16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 17.03.16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 17.03.16 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 17.03. 16 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 17.03.16 SR.PS 6. DATE OF PRONOUNCEMENT 16.03.16 SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER