M/s. CKP Sahakari Mandli Ltd., Vadodara V. ITO, Ward-3(1)(3), Vadodara

ITA 26/AHD/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6315 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 15-10-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 02-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N K GOYAL
• Section: 143(3); 80P; 64

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 26/AHD/2018 ( ASSESSMENT YEAR : 2013-14) M/S. CKP SHAKARI MANDLI LTD. LAXMI SADAN, PARKAR WADA, DANDIYA BAZAR, VADODARA 390001 / VS. INCOME TAX OFFICER WARD 3(1)(3), VADODARA ./ ./ PAN/GIR NO. : AAAAC2766N ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : SHRI N. K. GOYAL, SR. D.R. DATE OF HEARING 15/10/2019 !'# / DATE OF PRONOUNCEMENT 24/10/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX (APPEALS)-1, VADODARA (CIT(A) IN SHORT), DATED 17. 10.2017 ARISING IN THE ASSESSMENT ORDER DATED 14.12.2015 PASSED BY THE ASSESSING OFFICER ITA NO. 26/AHD/18 [M/S. CKP SAHAKARI MANDLI LTD.] A.Y. 2013-14 - 2 - (AO) UNDER S. 143(3) OF THE INCOME TAX ACT, 1961 (T HE ACT) CONCERNING AY 2013-14. 2. AS PER THE CAPTIONED APPEAL, THE ASSESSEE HAS CH ALLENGED THE ORDER OF THE CIT(A) FOR DENIAL OF DEDUCTION OF 80P AMOUNTING TO RS.3,24,199/- DERIVED BY WAY OF INTEREST ON FIXED D EPOSITS WITH NATIONALIZED BANKS. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NONE A PPEARED ON BEHALF OF THE ASSESSEE. THE MATTER WAS ACCORDINGLY PROCEE DED EX PARTE. 4. WE HAVE HEARD THE SUBMISSIONS MADE ON BEHALF OF THE REVENUE AS WELL AS PERUSED THE CASE RECORDS. THE ALLOWABIL ITY OF DEDUCTION OF INTEREST DERIVED FROM DEPOSITS PLACED WITH NATIONAL IZED BANKS IS IN QUESTION. THE ASSESSEE IS A REGISTERED SAHAKARI MA NDALI AND CLAIMS TO BE PRIMARILY ESTABLISHED TO PROVIDE CREDIT FACILITI ES TO ITS MEMBERS. THE ASSESSEE HAS INTER ALIA KEPT CERTAIN DEPOSITS WITH NATIONALIZED BANKS AND DERIVED INTEREST INCOME FROM SUCH DEPOSIT S. IT IS THE CASE OF THE ASSESSEE THAT THE INTEREST INCOME SO DERIVED WO ULD QUALIFY FOR DEDUCTION UNDER S.80P OF THE ACT ON THE GROUND THAT SUCH DEPOSITS WERE KEPT IN ORDER TO MAINTAIN LIQUIDITY OF FUNDS F OR RE-PAYMENT OF DEPOSITS AS THE CREDIT SOCIETY. WE NOTICE THAT THE AO HAS DENIED THE DEDUCTION UNDER S.80P(2)(I)/80P(2)(D) OF THE ACT PL ACING RELIANCE UPON THE DECISION OF THE HONBLE SUPREME COURT IN TOTGARS CO-OPERATIVE SALE SOCIETY LTD. VS. ITO (2010) 322 ITR 0283 (SC). IN THE FIRST APPEAL, THE CIT(A) ALSO OBSERVED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE REVENUE BY THE DECISION OF THE HONBL E GUJARAT HIGH COURT IN THE CASE OF STATE BANK OF INDIA (SBI) VS. CIT (2016) 72 TAXMANN.COM 64 (GUJ.) . HAVING NOTED THE OBSERVATION OF THE CIT(A), WE FIND THAT THE ISSUE IS REQUIRED TO BE TESTED UND ER S.80P(2)(A)(I) OF ITA NO. 26/AHD/18 [M/S. CKP SAHAKARI MANDLI LTD.] A.Y. 2013-14 - 3 - THE ACT. 80P(2)(D) HAS NO APPLICABILITY IN THE FAC TS OF THE CASE. WE SEE NO ERROR IN THE DECISION RENDERED BY THE CIT(A) IN THE FACTS OF THE CASE. THE ASSESSEE, A CO-OPERATIVE SOCIETY, HAS DE RIVED INCOME FROM FIXED DEPOSITS PLACED WITH BANKS. THE INCOME SO DER IVED IS NOT GENERATED FROM THE BUSINESS OF BANKING OR PROVIDING CREDIT FACILITIES TO ITS MEMBERS. THE ISSUE IS SQUARELY COVERED IN FAVO UR OF THE REVENUE BY THE DECISION OF THE HONBLE SUPREME COURT IN CITIZEN CO-OPERATIVE SOCIETY LIMITED VS. ACIT (2017) 88 TAXMANN.COM 279( SC). THUS, WE SEE NO INFIRMITY IN THE CONCLUSION DRAWN BY THE REV ENUE AUTHORITIES. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 24/10/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 24/10/20 19