The Arbuda Credit Co.Op. Society Ltd., Banaskantha V. The ACIT, B.K.Circle, Palanpur

ITA 2822/AHD/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0555 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 03-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL
• Assessee Lawyers: N C AMIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 2822/AHD/2013 / ASSESSMENT YEAR : 2009-10 THE ARBUDA CREDIT CO-OPERATIVE SOCIETY LTD, 1 ST FLOOR, NEW TOWER GANJ BAZAR, DHANERA, DIST. BANASKANTHA PAN : AAAAA 1251 A VS ACIT, B.K. CIRCLE, PALANPUR / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI N.C. AMIN, AR REVENUE BY : SHRI S.L. CHANDEL, SR DR / DATE OF HEARING : 06/09/2016 / DATE OF PRONOUNCEMENT: 08/09/2016 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, AHMEDABAD D ATED 13.09.2013 FOR AY 2009-10. 2. VARIOUS GROUNDS ARE RAISED IN THIS APPEAL; HOWEV ER, THE EFFECTIVE GROUND READS AS UNDER:- THAT THE LEARNED CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN NOT GRANTING BENEFIT OF SECTION 80P(2)(A)(I) OF THE I .T. ACT, 1961. 3. THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT T HE ASSESSEE IS A CREDIT CO-OPERATIVE SOCIETY, ADVANCING CREDIT TO ONLY ITS MEMBERS AND IS NOT A BANK. THE ISSUE IN QUESTION STANDS DECIDED IN FAVO UR OF THE ASSESSEE BY THE JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. JAFARI MOMIN VIKAS CO-OPERATIVE CREDIT SOCIETY LTD, REPORTED IN [2014] 362 ITR 331 (GUJ), HOLDING AS UNDER:- 7. FROM THE ABOVE CLARIFICATION, IT CAN BE GATHERE D THAT SUB-SECTION(4) OF SECTION 80P WILL NOT APPLY TO AN ASSESSEE WHICH IS NOT A CO-OPERATIVE BANK. IN THE CASE CLARIFIED BY CBDT, DELHI COOP URBAN THRIFT & CREDIT SOCIETY LTD. WAS UNDER CONSIDERATION. CIRCULAR CLARIFIED THAT TH E SAID ENTITY NOT BEING A SMC-ITA NO. 2822/AHD/2013 THE ARBUDA CREDIT CO-OP SOCIETY LTD VS. ACIT AY : 2009-10 2 COOPERATIVE BANK, SECTION 80P(4) OF THE ACT WOULD NOT APPLY TO IT. IN VIEW OF SUCH CLARIFICATION,WE CANNOT ENTERTAIN THE REVENUE' S CONTENTION THAT SECTION 80P(4) WOULD EXCLUDE NOT ONLY THE CO-OPERATIVE BANKS OTHER THAN THOSE FULFILLING THE DESCRIPTION CONTAINED THEREIN BUT AL SO CREDIT SOCIETIES, WHICH ARE NOT COOPERATIVE BANKS. IN THE PRESENT CASE, RESPOND ENT ASSESSEE IS ADMITTEDLY NOT A CREDIT CO-OPERATIVE BANK BUT A CREDIT CO-OPER ATIVE SOCIETY. EXCLUSION CLAUSE OF SUB-SECTION(4) OF SECTION 80P, THEREFORE, WOULD NOT APPLY. IN THE RESULT, TAX APPEALS ARE DISMISSED. 4. THE LD. DR, ON THE OTHER HAND, RELIED ON THE ORD ERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. IT EMERGES FROM THE RECORD THAT THE ASSESSEE IS A CREDIT CO-OP ERATIVE SOCIETY AND IS NOT A CO-OPERATIVE BANK. THEREFORE, RESPECTFULLY FOLLO WING THE JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF JAFARI MOM IN VIKAS CO-OPERATIVE CREDIT SOCIETY LTD (SUPRA), IT IS HELD THAT THE ASS ESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. THUS, THE AS SESSEES APPEAL IS ALLOWED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 8 TH SEPTEMBER, 2016 AT AHMEDABAD. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 08/09/2016 *BIJU T. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD