Appeal details
Counselvise Citation
[2019] 117 COUNSELVISE.COM (IT) 0145 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 5 month(s) 28 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-06-2019
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
D
Assessment Year
2014-2015
Appeal Filed On
26-12-2017
Judgement Text
, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A. NO. 3171/CHNY/2017 / ASSESSMENT YEAR: 2014-15 THE INCOME TAX OFFICER, WARD 2(3), SALEM. VS. M/S. S 672 ATTUR AGRICULTURAL PRODUCERS CO-OP MARKETING SOCIETY LTD., 363, KAMARAJANAR ROAD, PUDUPET, ATTUR TALUK, SALEM 636 141. [PAN: AAAAS3773R] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MRS. R. ANITA, JCIT / RESPONDENT BY : SHRI S. SRIDHAR, ADVOCATE / DATE OF HEARING : 19.06.2019 /DATE OF PRONOUNCEMENT : 24.06.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS), SALEM DATED 31.07.2017 RELEVANT TO THE ASSESSMENT YEAR 2014-15. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS PRIMARY AGRICULTURAL PRODUCERS CO-OPERATIVE MARKETING SOCIETY REGISTERED UNDER TAMILNADU CO- I.T.A. NO. 3171/CHNY/17 2 OPERATIVE SOCIETIES ACT. IT IS ALSO ENGAGED IN THE BUSINESS OF TRADING IN PDS COMMODITIES. THE ASSESSEE FILED ITS RETURN ADMITTING NIL INCOME AND CLAIMED DEDUCTION UNDER SECTION 80P(2)(A)(I), (C) & (D) OF THE ACT TO THE TUNE OF .1,06,53,360/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS SERVED ON THE ASSESSEE. IN RESPONSE THERETO, THE ASSESSEE FILED ALL DETAILS. AFTER CONSIDERING THE DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY ALLOWING DEDUCTION UNDER SECTION 80P(2) (C) & (D) AND DISALLOWED THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. 3. ON APPEAL, BY FOLLOWING THE VARIOUS DECISIONS OF THE TRIBUNAL ON THE IDENTICAL FACTS AND CIRCUMSTANCES, THE LD. CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE. 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AND RELIED ON THE ORDER OF THE ASSESSING OFFICER. FURTHER, THE LD. DR HAS SUBMITTED THAT THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF THE CITIZEN CO-OPERATIVE LIMITED REPORTED IN 84 TAXMANN.COM 114 IS SQUARELY APPLICABLE TO THE FACTS OF THE INSTANT CASE AND PLEADED THAT THE SAME SHOULD BE FOLLOWED. I.T.A. NO. 3171/CHNY/17 3 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AGAINST THE ORDER OF THE TRIBUNAL, THE APPEALS FILED BY THE DEPARTMENT IN RESPECT OF VARIOUS ASSESSEES HAVE BEEN ADJUDICATED AGAINST THE REVENUE BY THE HONBLE MADRAS HIGH COURT VIDE ITS ORDER IN TCA NOS. 484 TO 487 AND 490 OF 2016 DATED 02.08.2016, TCA NO. 735, 755 OF 2014 AND 460 OF 2015 DATED 05.07.2016, TCA NO. 490 OF 2016 DATED 02.08.2016 AND ALSO IN THE CASE OF PCIT V. S-1308 AMMAPET PRIMARY AGRICULTURAL COOPERATIVE BANK LTD. IN TCA NOS. 882 AND 891 OF 2018 DATED 06.12.2018. THUS, HE PRAYED THAT THE APPEAL FILED BY THE REVENUE SHOULD BE DISMISSED. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. EVEN THOUGH THE ISSUE RAISED IN THIS APPEAL AND FACTS ARE SIMILAR TO THAT OF THE DECISIONS OF THE HONBLE JURISDICTIONAL HIGH COURT AS RELIED ON HEREINABOVE BY THE ASSESSEE, SINCE THE DEPARTMENT HAS NOT ACCEPTED THE JUDGEMENT OF THE HONBLE HIGH COURT AND PREFERRED SLP BEFORE THE HONBLE SUPREME COURT, THE ASSESSING OFFICER MADE THE DISALLOWANCE ON THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. BEFORE US, THE LD. DR STRONGLY RELIED ON THE DECISION IN THE CASE OF THE CITIZEN CO-OPERATIVE LIMITED V. ACIT (SUPRA), WHEREIN, THE HONBLE SUPREME COURT DECIDED THE APPEAL AGAINST THE ASSESSEE. IN THE I.T.A. NO. 3171/CHNY/17 4 CASE OF ITO V. S-1308 AMMAPET PRIMARY AGRICULTURAL COOPERATIVE BANK LTD., THE DEPARTMENT TOOK SAME CONTENTION BY RELYING UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF THE CITIZEN CO-OPERATIVE LIMITED (SUPRA) AND BY REPRODUCING RELEVANT PORTION, THE TRIBUNAL DISTINGUISHED THE FACTS OF BOTH CASES AND HELD THAT THE SAID JUDGEMENT OF THE HONBLE SUPREME COURT HAS NO APPLICATION TO THE FACTS OF THE CASE AND DISMISSED THE APPEAL FILED BY THE REVENUE. AGAINST THE ORDER OF THE TRIBUNAL, THE DEPARTMENT PREFERRED FURTHER APPEAL AND VIDE ORDER IN T.C.A. NO. 882 & 891 OF 2018 DATED 06.12.2018, THE HONBLE JURISDICTIONAL HIGH COURT ALSO BY CONFIRMING THE ORDER OF THE TRIBUNAL, DISMISSED THE APPEAL PREFERRED BY THE REVENUE. SINCE, THE DECISION OF THE HONBLE HIGH COURT IS BINDING ON THE TRIBUNAL, WE ARE OF THE CONSIDERED OPINION THAT THE LD. CIT(A) HAS RIGHTLY FOLLOWED THE DECISION OF THE TRIBUNAL AND ALLOWED THE APPEAL OF THE ASSESSEE. THUS, THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THE 24 TH JUNE, 2019 IN CHENNAI. SD/- SD/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 24.06.2019 VM/- I.T.A. NO. 3171/CHNY/17 5 /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.
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