Sri Virupaksheshwara Pattins Souharda Sahakari Niyamita, Raichur V. Income tax Officer, Ward-2, Raichur

ITA 2746/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5432 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 18-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L V BHASKAR REDDY
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 2746 / BANG/201 7 ASSESSMENT YEAR : 20 1 0 - 11 M/S. SHRI VIRUPAKSHESHWARA PATTINA SOUHARDASAHAKARI NIYAMITA, BASAVA COMPLEX, MAIN ROAD, MANVI-POST &TQ -584 123. DIST: RAICHUR. PAN: AAAAV4208J VS. THE INCOME TAX OFFICER, WARD -2, RAICHUR. APPELLANT RESPONDENT APPELLANT BY : SHRI MADHUKAR G HEGDE , CA RESPONDENT BY : SHRI L.V. BHASKAR REDDY, ADDL. CIT (DR) DATE OF HEARING : 2 1 . 0 3 .2018 DATE OF PRONOUNCEMENT : 23 . 0 3 .201 8 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT(A), GULBARGA DATED 28.09.2017 FOR ASSESSMENT YE AR 2010-11. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE ORDER OF THE LEARNED CIT(A)-GULBARGA IS OPPO SED TO LAW AND FACTS OF THE CASE. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A)-GULBARGA WAS JUSTIFIED IN NOT ALLOWING DEDUC TION U/S 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 TO THE APP ELLANT CO-OPERATIVE SOCIETY CARRYING ON THE BUSINESS OF PROVIDING CREDI T FACILITY TO MEMBERS, TREATING IT AS CO-OPERATIVE BANK. 3. WHETHER THE LEARNED CIT(A)-GULBARGA WAS JUSTIFIE D IN UPHOLDING THE ADDITIONS MADE BY LEARNED ITO, WARD-2, RAICHUR TREATING THE APPELLANT CO-OPERATIVE SOCIETY AS BANK AND DISALLOW ING THE CLAIM OF DEDUCTION OF RS.24,77,370/- FOR THE A Y 2010-11. 4. WHETHER THE LEARNED CIT(A)-GULBARGA WAS JUSTIFIE D IN NOT CONSIDERING THE OBSERVATIONS MADE BY THE HONOURABLE SUPREME COURT ITA NO. 2746/BANG/2017 PAGE 2 OF 3 IN THE CASE OF CITIZEN CO-OPERATIVE SOCIETY LIMITED , HYDERABAD VS ACIT WHEREIN IT WAS HELD THAT SECTION 80P OF THE AC T IS BENEVOLENT PROVISION AND SUCH A PROVISION HAVE TO BE READ LIBE RALLY, REASONABLY AND IN FAVOUR OF THE ASSESSEE. 5. WHETHER CIT(A)-GULBARGA WAS CORRECT IN TREATING THE APPELLANT SOCIETY ON PAR WITH CITIZEN CO-OPERATIVE SOCIETY HY DERABAD, WITHOUT VERIFYING THE FACT THAT SECTION 22 OF KARNATAKA SOU HARDASAHAKARI ACT, 1997 WHICH PROHIBITS COLLECTION OF DEPOSITS FROM NO MINAL MEMBERS AND NON MEMBERS. 6. WHETHER CIT(A)-GULBARGA WAS CORRECT IN NOT FOLLO WING THE JUDGMENT OF JURISDICTIONAL HONOURABLE HIGH COURT, D HARWAD BENCH IN THE CASE OF SRI BILURGURUBASAVAPATTINASAHAKARI S ANGHA NIYAMITHA, BAGALKOT IN ITA NO. 5006/2013 AND SEVERA L OTHER CASES. 7. WHETHER CIT(A)-GULBARGA WAS CORRECT IN NOT FOLLO WING THE JUDGMENTS OF JURISDICTIONAL HONOURABLE HIGH COURT, IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO-OPERATIVE LIMIT ED VS ITO IN ITA NO.307 OF 2014 DATED 28.10.2014, IN NOT ALLOWIN G THE DEDUCTION U/S 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 FOR TH E INTEREST EARNED ON INVESTMENTS. 8. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED. 9. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS MENTIONED ABOVE. 3. IT IS SUBMITTED BY LD. AR OF ASSESSEE THAT LD. C IT(A) HAS DECIDED THE ISSUE AGAINST THE ASSESSEE BY FOLLOWING THE JUDGMENT OF H ONBLE APEX COURT RENDERED IN THE CASE OF THE CITIZEN CO-OPERATIVE SO CIETY LTD. VS. ACIT AS REPORTED IN 397 ITR 1. BUT THE FACTS OF THE PRESEN T CASE ARE DIFFERENT AND THEREFORE, THIS JUDGMENT IS NOT APPLICABLE BUT CIT( A) HAS NOT DISCUSSED AND COMPARED THE FACTS OF THE PRESENT CASE WITH THE FAC TS OF THAT CASE AND THEREFORE, HIS ORDER SHOULD BE REVERSED. HE ALSO S UBMITTED THAT IF CONSIDERED NECESSARY, THE MATTER SHOULD BE RESTORED BACK TO TH E FILE OF CIT(A) FOR FRESH DECISION BY WAY OF A SPEAKING AND REASONED ORDER AF TER DISCUSSING AND COMPARING THE FACTS OF THE PRESENT CASE WITH THE FA CTS OF THAT CASE. THE LD. DR OF REVENUE SUPPORTED THE ORDERS OF AUTHORITIES BELO W. ITA NO. 2746/BANG/2017 PAGE 3 OF 3 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND FORCE IN THE SUBMISSIONS OF LD. AR OF ASSESSEE THAT CIT(A) HAS FOLLOWED THIS JUDGME NT OF HONBLE APEX COURT RENDERED IN THE CASE OF THE CITIZEN CO-OPERATIVE SO CIETY LTD. VS. ACIT (SUPRA) WITHOUT DISCUSSING AND COMPARING THE FACTS OF THE P RESENT CASE WITH THE FACTS OF THAT CASE AND THEREFORE, IN THE INTEREST OF JUSTICE , I FEEL IT PROPER TO RESTORE THE MATTER BACK TO THE FILE OF CIT(A) FOR FRESH DECISIO N BY WAY OF A SPEAKING AND REASONED ORDER. ACCORDINGLY, I SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE FOR FRESH DECISION BY WAY O F A SPEAKING AND REASONED ORDER AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. 5. THE CIT(A) SHOULD DISCUSS AND COMPARE THE FACTS OF THE PRESENT CASE WITH THE FACTS IN THE CASE OF THE CITIZEN CO-OPERATIVE SOCIE TY LTD. VS. ACIT (SUPRA) AND THEN PASS A SPEAKING AND REASONED ORDER. IN VIEW O F THIS DECISION, NO FURTHER ADJUDICATION IS CALLED FOR REGARDING THE MERIT OF T HE CASE AT THE PRESENT STAGE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 23 RD MARCH, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.