Addl. CIT, Muzaffarnagar V. Adarsh Mahila Mercantile Cooperative Bank Ltd., Muzaffarnagar

ITA 3328/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8480 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-07-2009
• Assessment Year: 2006-2007
• Appeal Filed On: 06-11-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATIMA KAUSHIK
• Assessee Lawyers: AMIT GOEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA : VICE PRESIDENT; A ND SRHI D.R. SINGH : JUDICIAL MEMBER ITA NO. 3328/DEL/08 ASSTT. YRS: 2006-07 ADDL. CIT, RANE-2, VS. ADARSH MAHILA MERCANTILE MUZAFFARNAGAR. COOPERATIVE BANK LTD., 10-A, NEW MANDI, MUZAFFARNAGAR. PAN/GIR NO. AAAAA4275C ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SMT. PRATIMA KAUSHIK SR. DR RESPONDENT BY : SHRI AMIT GOEL CA O R D E R PER G.E. VEERABHADRAPPA, V.P: THIS APPEAL, BY THE REVENUE , ARISES OUT OF THE ORD ER DATED 14-8-2008 OF CIT(A), MUZAFFARNAGAR, RELATING TO A.Y. 2006-07 . 2. THROUGH THE GROUNDS RAISED, THE REVENUE HAS CHA LLENGED THE ACTION OF CIT(A) IN ALLOWING THE ASSESSEES CLAIM OF EXEMPTI ON U/S 80P(2)(A)(I) IN RESPECT OF INTEREST AMOUNTING TO RS. 16,71,593/-. I T MAY BE STATED THAT INTEREST WAS RECEIVED IN RESPECT OF LOANS ADVANCED TO NON-MEMBERS. 3. THE ASSESSEE, ADMITTEDLY, IS A COOPERATIVE SOCIE TY, DOING BANKING BUSINESS. IN THE COURSE OF ITS BUSINESS THE ASSESSE E EXTENDED CREDIT FACILITY TO ITS MEMBERS AND NON-MEMBERS. IN RESPECT OF THE LATT ER THE AO HAS TAKEN A 2 STAND THAT SUCH AMOUNTS ARE NOT ELIGIBLE FOR EXEMPT ION U/S 80P(2)(A)(I) OF THE I.T. ACT. 4. THE LEARNED CIT(A) FOLLOWING THE DECISION OF THE PUNJAB & HARYANA HIGH COURT IN CIT VS. PUNJAB STATE COOPERATIVE BANK LTD. (2008) 169 TAXMAN 290 ACCEPTED THE CLAIM OF THE ASSESSEE AND T HE REVENUE IS AGGRIEVED. 5. THE LEARNED DR FAIRLY ADMITTED THAT THE ISSUE IN QUESTION IS COVERED IN FAVOUR OF THE ASSESSEE BY THE AFORESAID DECISION OF HONBLE PUNJAB & HARYANA HIGH COURT. 6. THE LEARNED COUNSEL FOR THE ASSESSEE, APART FROM RELYING UPON THE AFORESAID DECISION OF THE PUNJAB & HARYANA HIGH COU RT, HAS ALSO RELIED ON FOLLOWING DECISIONS OF THE ITAT: (I) SHRI MAHAVIR NAGARI SAHAKARI PAT SANSTHA LTD. VS. DCIT IT(SS) NO. 2/PN/1997. (II) MILLI CO-OP. URBAN BANK LTD. VS. ITO (2007) 1 06 ITD 151 (HYD.). (III) BOMBAY MERCANTILE CO-OPERATIVE BANK LTD. VS. DCIT (2006) 7 SOT 549 (MUM.). 7. WE HAVE HEARD RIVAL SUBMISSIONS OF THE PARTIES AND GONE THROUGH THE RECORD. IN THE LIGHT OF THE DECISION OF HONBLE PUN JAB & HARYANA HIGH COURT (SUPRA), THE CLAIM OF THE ASSESSEE DESERVES TO SUCC EED AND WE FIND NO 3 INFIRMITY IN THE ORDER OF CIT(A). ACCORDINGLY, ORDE R OF CIT(A) ON THE ISSUE IN QUESTION IS UPHELD AND THE APPEAL OF THE REVENU E IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 30 TH JULY 2009. SD/- SD/- (D.R. SINGH ) ( G.E. VEERABHADRAP PA ) JUDICIAL MEMBER VICE PRESIDENT DATED: 30-07-2009. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR