Union Bank Co-Operative Credit Society Ltd., Ahmedabad V. The Income Tax Officer, Ward-1(3)(5), (Old Ward: 3(3)), Ahmedabad

ITA 2989/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7925 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 26-10-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 2989/AHD/2015 ( ASSESSMENT YEAR : 2011-12) UNION BANK CO.OPERATIVE CREDIT SOCIETY LTD., DHANLAXMI MARKET, RAILWAYPURA, AHMEDABAD - 380002 / VS. INCOME TAX OFFICER, WARD- 1(3)(5), AHMEDABAD [OLD JURISDICTION ITO, WARD :3(3), AHMEDABAD] ././ PAN/GIR NO. : AAAAU0802F ( APPELLANT ) .. ( !' / RESPONDENT ) # / APPELLANT BY : NONE (ADJ. LETTER DECLINED) !' $# / RESPONDENT BY : SHRI ALOK KUMAR, SR. D.R. % &'($) DATE OF HEARING 03/07/2018 *+, $) / DATE OF PRONOUNCEMENT 04/07/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-10, AHMEDA BAD (CIT(A) IN SHORT), DATED 21 ST AUGUST, 2015 ARISING IN THE ASSESSMENT ORDER DATED 20.01.2014 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 20 11-12. 2. THE SOLITARY GROUND OF APPEAL RAISED BY THE ASSE SSEE READS AS UNDER: ITA NO. 2989/AHD/15 [UNION BANK CO.OP. CREDIT SOCIE TY LTD. VS. ITO] A.Y. 2011-12 - 2 - 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE DISALLOWANCE OF DEDUCTION OF RS.16,34,325/- UNDER S ECTION 80P OF THE INCOME TAX ACT, 1961, WE REQUEST TO GRANT DEDUCTION UNDER SECTION 80P OF THE INCOME TAX ACT, 1961. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NONE WAS PRESENT ON BEHALF OF THE ASSESSEE. ACCORDINGLY, THE MATTER WA S PROCEEDED EX PARTE. 4. THE LEARNED DR RELIED UPON THE ORDERS OF THE AUT HORITIES BELOW. 5. ON PERUSAL OF THE ORDER OF THE CIT(A), IT IS SEE N THAT THE AO HAS DISALLOWED THE CLAIM OF THE ASSESSEE UNDER S. 80P(2 )(A)(I) OF THE ACT AS INTEREST INCOME WAS FOUND TO BE DERIVED FROM NATION ALIZED BANK AND NOT FROM CO-OPERATIVE BANK. RELIANCE ON THE DECISI ON OF HONBLE SUPREME COURT IN THE CASE OF M/S. TOTGAR CO-OPERATI VE SALES SOCIETY IN 322 ITR 283 (SC) WAS PLACED FOR DOING SO. ON FU RTHER PERUSAL OF THE ORDER OF THE CIT(A), IT IS SEEN THAT THE ASSESS EE HAS DERIVED INTEREST ON SAVINGS ACCOUNT AMOUNTING TO RS.54,920/ - AND INTEREST ON FIXED DEPOSITS AMOUNTING TO RS.15,79,405/- PLACED W ITH NATIONALIZED BANK. IN THESE FACTS, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE CONCLUSION DRAWN BY THE LOWER AUTHORITIES FOR DENIA L OF DEDUCTION IN TERMS OF SECTION 80P(2)(A)(I) OF THE ACT FOR ALLOWA BILITY OF INTEREST DERIVED ON DEPOSITS PLACED WITH NATIONALIZED BANK. THE ACTION OF THE LOWER AUTHORITIES IS INCONSONANCE WITH SEVERAL JUDI CIAL PRECEDENTS INCLUDING HONBLE GUJARAT HIGH COURT IN THE CASE OF SBI EMPLOYEES CO-CREDIT & SUPPLY SOCIETY V. CIT(A) (2016) 389 ITR 578. THUS, WE DECLINE TO INTERFERE WITH THE ACTION OF THE REVENUE ON THIS SCORE. 6. HOWEVER, WE FIND MERIT IN THE ALTERNATIVE PLEA O F THE ASSESSEE BEFORE THE LOWER AUTHORITIES FOR ALLOWABILITY OF EX PENDITURE ATTRIBUTABLE TO THE EARNING OF SUCH INCOME, IF ANY. THIS ASPECT WILL REQUIRE FACTUAL VERIFICATION AND ACCORDINGLY REMITT ED BACK TO THE FILE ITA NO. 2989/AHD/15 [UNION BANK CO.OP. CREDIT SOCIE TY LTD. VS. ITO] A.Y. 2011-12 - 3 - OF THE AO FOR DETERMINING THE ALLOWABILITY OF EXPEN DITURE ATTRIBUTABLE TO INTEREST EARNED ON DEPOSITS, IF ANY, WITH NATION ALIZED BANKS. 7. WE ALSO REMIT THE ISSUE TOWARDS ELIGIBILITY OF S TANDARD DEDUCTIONS CONTEMPLATED UNDER S.80P(2)(C)(II) OF TH E ACT IN THE LIGHT OF THE FACTS OF THE CASE TO THE FILE OF AO. THE AO SHALL DECIDE THE ISSUE IN ACCORDANCE WITH THE LAW AFTER GIVING FAIR OPPORTUNITY TO THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 04/07/2018 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- ..' / REVENUE 2.' / ASSESSEE 0. ) % 1) / CONCERNED CIT 4. % 1)- / CIT (A) 4.5'67!8)8& 9 9 / DR, ITAT, AHMEDABAD :.7;<= / GUARD FILE. BY ORDER / 9 / 9 THIS ORDER PRONOUNCED IN OPEN COURT ON 04/07/20 18