Primary Agriculture co-op Society Limited , Utoor , Karimnagar V. Income Tax Officer, Ward-2, Karimnagar

ITA 290/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1633 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-02-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 09-06-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BALA KRISHNA
• Assessee Lawyers: A V RAGHURAM
• Section: 80P; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER IT A NO. 290 /H/20 20 ASSESSMENT YEAR: 20 17 - 18 PRIMARY AGRICULTURE CO - OP SOCIETY LTD., UTOOR, KARIMNAGAR. PAN AABAP 6060F VS. INCOME - TAX OFFICER, WARD 2, KARIMNAGAR (APPELLANT) (RESPONDENT) AND ITA NO. 291 /H/2020 ASSESSMENT YEAR: 20 17 - 18 PRIMARY AGRICULTURE CO - OP CREDIT SOCIETY LTD., DURSHED, KARIMNAGAR. VS. INCOME - TAX OFFICER, WARD 1, KARIMNAGAR. ASSESSEE BY: SHRI A.V. RAGHURAM REVENUE BY: SHRI BALA KRISHNA DATE OF HEARING: 0 4 /0 2 /2021 DATE OF PRONOUNCEMENT: 16 /0 2 /2021 O R D E R BOTH THE S E ASSESSEE S APPEAL S FOR AY 20 17 - 18 ARE DIRECTED AGAINST THE C I T(A) - 2 , HYDERABAD S ORDER S DATED 18/02 / 20 20 PASSED IN CASE NO S . 12954 & 12949/2019 - 20 /CIT(A) 2 INVOLVING PROCEEDINGS U/S 1 4 4 OF THE INCOME TAX ACT , 1961 ; IN SHORT THE ACT. I TA NO S 290 & 291 /HYD/ 2020 : - 2 - : H EARD BOTH THE PARTIES. CASE F ILE PERUSED. 2. I NOTICE AT THE OUTSET THAT ASSESSEES INSTANT APPEAL S SUFFER FROM 36 DAYS DELAY IN FILING. THE ASSESSEES HAVE FILED THEIR RESPECTIVE AFFIDAVITS A VERRING THEREIN THAT DUE TO LOCK DOWN IMPOSED ON ACCOUNT OF COVID - 19 RESULTING IN LACK OF COMPUTATION OF NECESSARY DOCUMENTS CAUSED THE IMPUGNED DELAY. CASE LAW COLLECTOR LAND ACQUISITION VS MST. KATIJI & ORS, 1987 AI R 1353 (SC) AND UNIVERSITY OF DELHI VS. UNION OF INDIA, CIVIL APPEAL NO. 9488 & 9489/2019 DATED 17 DECEMBER, 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. I ACCO RDINGLY HOLD THAT ASSESSEES IMPUGNED DELAY OF 36 DAYS IS NEITHER INTENTIONAL NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND THEIR CONTROL. CASE S ARE NOW TAKEN UP FOR ADJUDICATION ON MERITS THEREFORE . 3. IT TRANSPIRES DURIN G THE COURSE OF HEARING THAT ASSESSEES IDENTICAL SUBSTANTIVE GROUND IN BOTH THESE APPEALS CHALLENG E CORRECTNESS OF THE LOWER AUTHORITIES DISALLOWING SECTION 80P DEDUCTION OF RS. 20,75,365/ - AND I TA NO S 290 & 291 /HYD/ 2020 : - 3 - : RS. 44,35,359/ - U/S 80 P; RESPECTIVELY MAINLY ON THE GROUND THAT IT FAILED TO FILE RETURN SO AS TO BE ELIGIBLE FOR THE SAME. LEARNED COUNSELS PLEA IS THAT THERE IS A DISPUTE ABOUT ASSESSEES HAVING DERIVED IMPUGNED INTEREST INCOME(S) HEREINABOVE IN REGULAR BUSINESS FROM ITS MEMBERS ONLY WHICH IN TURN IS TO BE APP LIED ON THE TRUE PRINCIPLES OF COOPERATIVE SOCIETY. MR. RAGHURAM RAISED YET ANOTHER PLEA OF MUTUALITY THAT THREE CONDITIONS THEREOF I.E. COMPLETE IDENTITY BETWEEN THE CLASS OF CONTRIBUTORS AND PARTICIPATORS (PARTICULAR LABEL OR FORM THEREOF IS OF NO CONSE QUENCE), THEIR ACTIVITY(IES) ARE IN FURTHERANCE TO MANDATE OF THE MUTUAL ASSOCIATION AND THERE IS NO SCOPE OF ANY PROFITEERING; RESPECTIVELY ARE DULY FULFILLED AS PROPOUNDED IN BENGALURU CULB VS. CIT [2013] 350 ITR 509 (SC) . 4 . LEARNED DR VEHEMENTLY SUPPORTED THE IMPUGNED DISALLOWANCE. 5 . I HAVE GIVEN MY THOUGHTFUL CONSIDERATION TO THE RIVAL PLEADINGS QUA THIS MUTUALITY ISSUE, WHICH HAS BEEN RAISED FOR THE FIRST TIME BEFORE THE T RIBUNAL. I AM OF THE VIEW THAT LARGER INTEREST OF JUSTICE WOULD BE MET IN CASE THE LEARNED I TA NO S 290 & 291 /HYD/ 2020 : - 4 - : CIT(A) DECIDES THE SAME AFRESH KEEPING IN ALL THE FACTS AND CIRCUMSTANCES ON THE MATTER IN LIGHT OF THE SETTLED LEGAL PROPOSITION HEREINABOVE . THE ASSESSEES OR THEIR REPRESENTATIVES SHALL APPEAR BEFORE CIT(A) ON O R BEFORE 31 ST JULY, 2021 TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING AT ITS OWN RISK AND RESPONSIBILITY . 3 . T HESE ASSESSEES APPEAL S ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS . PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY , 2021 . SD/ - ( S.S. GODARA ) JUDICIAL MEMBER HYDE RABAD, DATED : 16 TH FEBRUARY , 20 2 1 . K V C OPY TO : 1 M/S PRIMARY AGRICULTURAL COOP. SOCIETY LTD., UTOOR, MANAKONDUR, KARIMNAGAR 5050 505 2 M/S PRIMARY AGRICULTURAL COOP CREDIT SOCIETY LTD., D.NO. 1 - 60/5A, DURSHED, KARIMNAGAR 505 001. 3 IT O , WARD 2 , KARIMNAGAR 4 ITO, WARD 1, KARIMNAGAR 5 C I T(A) 2 , HYDERABAD. 6 PR. CIT 2 , HYDERABAD 7 ITAT, DR, HYDERABAD. 8 GUARD FILE. I TA NO S 290 & 291 /HYD/ 2020 : - 5 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER