Shri Adarsh Mahila Credit Co.Op. Society Ltd., Botad V. The Income Tax Officer, Ward-2(5), Bhavnagar

ITA 3488/AHD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0614 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-08-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 11-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.3488/AHD/2015 / ASSTT. YEAR: 2012-2013 SHRI ADARSH MAHILA CREDIT CO - OP. SOCIETY LTD. PANJARAPOLE ROAD TOWER CHOWK PARA, ROAD 364 710. PAN : AAAAA 5442 R VS ITO, WARD - 2(5) BHAVNAGAR. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : - REVENUE BY : SHRI SATISH SOLANKI, SR.DR / DATE OF HEARING : 09/08/2016 / DATE OF PRONOUNCEMENT: 09 /09/2016 $%/ O R D E R ASSESSEE IS IN APPEAL AGAINST ORDER OF THE LD.CIT(A )-6, AHMEDABAD DATED 23.9.2015 PASSED FOR THE ASTT.YEAR 2012-13. 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE NOT IN CON SONANCE WITH THE RULE 8 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 196 3 - THEY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN SHORT, THE GRIEV ANCE OF THE ASSESSEE IS THAT THE LD. REVENUE AUTHORITIES HAVE ERRED IN DENYING THE EXEMPTION UNDER SECTION 80P(2) OF THE INCOME TAX ACT, 1961 ON THE I NTEREST INCOME EARNED BY IT ON THE DEPOSITS MADE WITH STATE BANK OF INDIA OU T OF SURPLUS FUND. ITA NO.3488/AHD/2015 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBE RS. IT HAS FILED RETURN OF INCOME ON 25.8.2012 DECLARING TOTAL INCOME AT NIL. THE ASSESSEE HAS CLAIMED EXEMPTION UNDER SECTION 80P OF THE ACT OF R S.23,36,399/- WHICH INCLUDED INTEREST INCOME OF RS.6,97,975/- FROM THE DEPOSITS WITH BHAVNAGAR DIST. CO-OP. BANK AND RS.72,252/- FROM STATE BANK O F INDIA. THUS, THE AO EXCLUDED THE INTEREST INCOME OF RS.72,252/- EARNED FROM THE DEPOSITS WITH STATE BANK OF INDIA, FROM EXEMPTION ADMISSIBLE UNDE R SECTION 80P(2)(A)(I) OF THE ACT. APPEAL TO THE CIT(A) DID NOT BRING ANY RE LIEF TO THE ASSESSEE. 4. THE ASSESSEE WAS REPRESENTED BY A COUNSEL. BUT SOMEHOW HE FAILED TO FILE POWER OF ATTORNEY AND ALSO FAILED TO INTIMATE HIS NAME TO BENCH CLERK, THEREFORE, HIS NAME COULD NOT BE RECORDED. HOWEVER , HE PLACED ON RECORD COPY OF THE JUDGMENT OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF M/S.GUTTIGEDARARA CREDIT CO-OPERATIVE SOCIETY LTD. VS. ITO. HE ALSO POINTED OUT THAT THE LD.CIT(A) IN THE IMPUGNED ORDER HAS DE CIDED THE APPEALS OF THREE COOPERATIVE SOCIETIES AND THE TRIBUNAL HAS ALREADY DECIDED TWO APPEALS OUT OF THOSE THREE APPEALS. HE PLACED ON RECORD COPY OF O RDER IN THE CASE OF SHRI SARVODAYA CREDIT CO-OP. SOCIETY AND BOTAD PEOPLES C O-OP. CREDIT SOCIETY. IN THESE TWO SOCIETIES, THE AO HAS DENIED EXEMPTION UNDER SECTION 80P(2)(A) ON THE INTEREST EARNED FROM THE DEPOSITS IN THE BAN K. THE TRIBUNAL HAS DELETED SUCH DISALLOWANCE BY OBSERVING THAT ISSUE IN DISPUT E IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY A LARGE NUMBER OF ORDERS RENDERED BY THE ITAT AS WELL AS DECISION OF THE HONBLE KARNATAKA HIGH COUR T RENDERED I THE CASE OF M/S.GUTTIGEDARARA CREDIT COOPERATIVE SOCIETY LTD., IN I.T.A.NO.29/2015. IN THIS DECISION, THE HONBLE HIGH COURT HAS HELD THAT EXEMPTION IN THE CASE OF COOPERATIVE SOCIETY UNDER SECTION 80P(2) WOULD BE A DMISSIBLE ON THE INTEREST ITA NO.3488/AHD/2015 3 EARNED FROM THE DEPOSITS WITH NATIONALIZED BANKS. CONSIDERING ALL THESE ASPECTS, I ALLOW THE APPEAL OF THE ASSESSEE AND DEL ETE DISALLOWANCE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE COURT ON 9 TH SEPTEMBER, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 09/09/2016