ITO, Salem V. S-1308, Ammapet Primary Agricultural Co-operative Bank Ltd., Salem

ITA 3221/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7705 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-11-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: M BALU ITP

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO. 3221/MDS/2016 / ASSESSMENT YEAR : 2013-14 THE INCOME TAX OFFICER, WARD-1(1), SALEM. V M/S. S-1308, AMMAPET PRIMARY AGRICULTURAL CO-OPERATIVE BANK LTD., AMMAPET, SALEM 636003. PAN: AAFAS9796K ( /APPELLANT) ( !' /RESPONDENT) # /APPELLANT BY : SHRI SHIVA SRINIVAS, JCIT !' # /RESPONDENT BY : SHRI M. BALU, ITP # /DATE OF HEARING : 01.02.2017 # /DATE OF PRONOUNCEMENT : 28.02.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM DATED 3 0.08.2016 AND PERTAINS TO THE ASSESSMENT YEAR 2013-14. 2. THERE WAS A DELAY OF 24 DAYS IN FILING THIS APPE AL BY THE REVENUE. THE REVENUE HAS NOT FILED A PETITION FOR CONDONATIO N OF DELAY. WE HAVE HEARD THE LD. D.R. AND LD. REPRESENTATIVE. WE FIND THAT THERE WAS 2 I.T.A. NO. 3221/MDS/2016 SUFFICIENT CAUSE FOR NOT FILING THE APPEAL BEFORE T HE STIPULATED TIME. THEREFORE, WE CONDONE THE DELAY AND ADMIT THE APPEA L. 3. SHRI SHIVA SRINIVAS, THE LD. DEPARTMENTAL REPRES ENTATIVE SUBMITTED THAT THE ASSESSEE A CO-OPERATIVE BANK CLA IMED DEDUCTION UNDER SECTION 80P OF THE INCOME TAX ACT, 1961 (IN S HORT THE ACT). ACCORDING TO THE LD. D.R., A CO-OPERATIVE BANK CANN OT CLAIM DEDUCTION UNDER SECTION 80P OF THE ACT. THE DEDUCTION AVAILA BLE UNDER SECTION 80P OF THE ACT IS ONLY TO CO-OPERATIVE CREDIT SOCIE TY AND NOT TO THE BANK. REFERRING TO THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN SHRI CHANDRAPRABHU URBAN CO-OPERATIVE CREDIT SOCIETY LTD ., (2014) 45 TAXMAN 14, THE LD. D.R., SUBMITTED THAT CO-OPERATIV E BANKS ARE NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80P OF THE ACT . 4. ON THE CONTRARY, SHRI M. BALU, THE LD. REPRESENT ATIVE FOR THE ASSESSEE SUBMITTED THAT IN THE ASSESSEES OWN CASE IN TAX CASE APPEAL NO.259 OF 2016, THE MADRAS HIGH COURT FOUND THAT TH E ASSESSEE IS NOT A CO-OPERATIVE BANK. THE ACTIVITIES OF THE ASSESSEE IN THE NATURE OF ACCEPTING DEPOSITS, ADVANCING LOANS, ETC., ARE CONF INED ONLY TO ITS MEMBERS AND THAT TOO IN A PARTICULAR GEOGRAPHICAL A REA. THEREFORE, THE ASSESSEE SOCIETY IS ELIGIBLE FOR DEDUCTION UNDER SE CTION 80P(A)(I) OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS RIGHT LY SUBMITTED BY THE LD. 3 I.T.A. NO. 3221/MDS/2016 REPRESENTATIVE FOR THE ASSESSEE, THE MADRAS HIGH CO URT IN THE ASSESSEES OWN CASE EXAMINED THIS ISSUE IN TAX CASE APPEAL NO. 259 OF 2016 AND FOUND THAT THE ASSESSEE CO-OPERATIVE BANK IS NOT A BANK AND IT IS ONLY A CREDIT SOCIETY. THE HIGH COURT FURTHER OBSERVED TH AT THE ACTIVITY OF THE ASSESSEE IN ACCEPTING DEPOSITS, ADVANCING LOANS ETC ., ARE CONFINED ONLY TO ITS MEMBERS AND ALSO RESTRICTED TO A PARTICULAR GEOGRAPHICAL AREA. THEREFORE, THE HIGH COURT FOUND THAT THE ASSESSEES SOCIETY IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) OF THE ACT. I N VIEW OF THE JUDGEMENT OF THE HIGH COURT, THIS TRIBUNAL DO NOT FIND ANY RE ASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE SAME IS CONFIRMED. 6. IN THE RESULT THE APPEAL OF THE REVENUE STANDS D ISMISSED. ORDER PRONOUNCED ON 28 TH FEBRUARY, 2017 AT CHENNAI. SD/- SD/- ( . . ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) /ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, /DATED, THE 28 TH FEBRUARY, 2017. JR. # ! $ % $ /COPY TO: 1. /APPELLANT 2. !' /RESPONDENT 3. &' ( )/CIT(A), SALEM 4. &' /CIT 5. ! $ /DR 6. () /GF.