Nashik District Secondary Teachers Co-Op Credit Society Ltd, Nashik V. Commissioner of Income-tax, (Appeal) -1, Nashik

ITA 280/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9860 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-06-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 19-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Rule of consistency

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO. 280/PUN/2019 / ASSESSMENT YEAR : 2014-15 NASHIK DISTRICT SECONDARY TEACHERS CO-OP. CREDIT SOCIETY LTD., BHAGYASHREE VARTI COLONY, BEHIND ZILHA PARISHAD, NASHIK 422 002 PAN : AAAAN4668C VS. ITO, WARD-1(2), NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-1, NASHIK ON 12-12-2018 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF DEDUCTION U/S.80P ON INTERES T EARNED FROM STAFF LOAN TO THE TUNE OF RS.2,65,702/-. APPELLANT BY SHRI PRAMOD SHINGTE RESPONDENT BY SHRI V.K. SINGH DATE OF HEARING 02-01-2020 DATE OF PRONOUNCEMENT 03-01-2020 ITA NO. 280/PUN/2019 NASHIK DISTRICT SECONDARY TEACHERS CO-OP. CREDIT SOCIETY LTD., 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS A CO-OPERATIVE SOCIETY ENGAGED IN THE BUSINESS OF PROVIDING CREDIT FACILITIES TO ITS MEMBERS. THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE HAD SHOWN RECEIPT OF RS.6,33 ,839/- FROM LOANS GIVEN TO ITS EMPLOYEES. HE REDUCED PROPORTIONATE EXPENSES AND WORKED OUT THE NET AMOUNT AT RS.2,65,702/-. BY ALLOWING DEDUCTION U/S.80P(2)(C) AT RS.50,000/-, THE AO MADE DISALLOWANCE AT RS.2,15,702/-, WHICH CAME TO BE SUSTAINED IN THE FIRST APPEAL. 4. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVAN T MATERIAL ON RECORD. IT IS SEEN AS AN ADMITTED POSITION THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVIDING CREDIT FACILITIES TO ITS MEMBERS. SECTION 80P(2)(A) PROVIDES THAT IN THE CASE OF CO-OPERATIVE SOCIETY ENGAGED IN CARRYING ON TH E BUSINESS OF BANKING OR PROVIDING CREDIT FACILITIES TO ITS MEMBERS, T HE WHOLE OF THE AMOUNT OF PROFITS AND GAINS OF BUSINESS ATTRIBUTABLE TO ANY ONE OR MORE OF SUCH ACTIVITIES SHA LL BE ELIGIBLE FOR DEDUCTION. THE LD. AR SUBMITTED THAT THE STAFF MEMBERS TO WHOM THE ADVANCES WERE MADE, ARE ALSO THE MEMBERS AND FURTHER NO DISALLOWANCE WAS EVER MADE IN THE ITA NO. 280/PUN/2019 NASHIK DISTRICT SECONDARY TEACHERS CO-OP. CREDIT SOCIETY LTD., 3 PAST ON SUCH INTEREST RECEIVED FROM THE STAFF MEMBERS. TH E RULE OF CONSISTENCY COMES INTO PLAY WHICH NECESSITATES THE ALLOWING OF CLAIM U/S.80P ON SUCH INTEREST INCOME. I, THEREFORE, DIRECT TO DELETE THE DISALLOWANCE MADE BY THE LD. CIT(A). 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD JANUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 03 RD JANUARY, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, NASHIK 4. THE PR. CIT-1, NASHIK 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO. 280/PUN/2019 NASHIK DISTRICT SECONDARY TEACHERS CO-OP. CREDIT SOCIETY LTD., 4 DATE 1. DRAFT DICTATED ON 02-01-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 02-01-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *