The ITO, Ward-3(1)(5), Baroda V. Shree Shramjivi Nagrik Sahakari Mandli Ltd., Vadodara

ITA 291/AHD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8693 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 05-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ILA PARMAR
• Section: 143(3)

Judgement Text

ITA NO. 291 /AHD/201 6 A . Y . : 2012 - 13 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD SM C BENCH, AHMEDABAD [CORAM : PRAMOD KUMAR , A CCOUNTANT MEMBER ] ITA NO. 2 91 /AHD/201 6 A SSESSMENT YEAR: 2012 - 13 DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(1), BARODA. ... .. APPELLANT VS. SHREE SHRAMJIVI NAGRIK SAHAKARI MANDLI LTD., .RESPONDENT JAGANNATH HAVELI, NEAR WADI TOWER, WADI, VADODARA 390 017. [PAN : AAA AS 1934 L ] APPEARANCES BY : ILA PARMAR , FOR THE APPELLANT NONE , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 24 .0 8 .2017 DATE OF PRONOUNCING THE ORDER : 28. 0 8 .2017 O R D E R 1. TH IS APPEAL IS DIRECTED AGAINST LEARNED CIT(A) S ORDER DATED 26.11.2015 IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961, FOR THE ASSESSMENT YEAR 2012 - 13. 2. GRIEVANCE RAISED BY THE APPELLANT IS A S FOLLOWS : - ON THE FACTS AND IN THE CIR CUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN DELETING THE DISALLOWANCE OF RS.33,04,004/ - MADE U/S 80P(2)(A)(I) OF THE ACT, DISREGARDING THE PROVISIONS OF SECTION 80P(2)(D) OF THE ACT WHICH MANDATES FOR ELIGIBILITY OF DEDUCTION OF INTERE ST EARNED FROM OTHER CO - OPERATIVE SOCIETIES AND NOT FROM NATIONALIZED BANKS. ITA NO. 291 /AHD/201 6 A . Y . : 2012 - 13 3. I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE BUT NONE APPEARED FOR THE ASSESSEE. I HAVE ALSO PE R USED THE MATERIAL ON RECORD AND CONSIDERED THE FACTS OF THE CASE IN THE LIGHT OF THE APPLICABLE LEGAL POSITION. 4. I FIND T HAT SO FAR AS THE CORE ISSUE IN APPEAL IS CONCERNED, IT IS NOW COVERED AGAINST THE ASSESSEE BY HON BLE JURISDICTIONAL HIGH COURT S JUDGMENT IN THE CASE OF STATE BANK OF INDIA VS. CIT [(2016) 389 ITR 57 8 (GUJ)]. THE BENEFIT OF DEDUCTION UNDER SECTION 80P(2), THEREFORE, DESERVES TO BE DECLINED. IN ALL FAIRNESS, HOWEVER, WHAT IS TO BE DECLINED DEDUCTION IS NOT THE GROSS RECEIPT OF INTEREST FRO M NATIONALIZED BANKS, BUT NOT INCOME FROM SUCH RECEIPTS. IN CA SE ASSESSEE HAS INCURRED ANY DIRECT EXPENDITURE FOR EARNING THIS INCOME, SUCH EXPENDITURE IS TO BE REDUCED FROM RELATED RECEIPTS, AND DEDUCTION BEING DECLINED IS TO BE RESTRICTED TO RESULTANT NET INCOME. I, THEREFORE, REMIT THE MATTER TO THE FILE OF THE L EARNED CIT(A) FOR THIS LIMITED PURPOSE. 5. IN THE RESULT, THE APPEAL IS ALLOW ED FOR STATISTICAL PURPOSES IN THE TERMS INDICATED ABOVE . PRONOUNCED IN THE OPEN COURT TODAY ON THE 28 TH DAY OF AUGUST, 2017. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: AHMEDABAD, THE 28 TH DAY OF AUGUST , 2017. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLANT TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1 .