THE HOOSEINI CO OPERATIVE CREDIT SOCIETY LTD, MUMBAI V. ITO 15(1)(4), MUMBAI

ITA 3556/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4203 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2010-2011
• Appeal Filed On: 19-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B D NAIK

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN, AM AND PAWAN SINGH, JM ./ I.T.A. NO . 2965 / MUM/ 201 4 ( / ASSESSMENT YEA R: 20 10 - 11 ) INCOME TAX O FFICER 15(1)(4), MATRU MANDIR, ROOM NO.108, TARDEO ROAD, MUMBAI - 4000 07 / VS. M/S HOOSEINI CO - OP CREDIT SOC.LTD., 496 - 498, SIR J J ROAD, OPP J J HOSPITAL, MUMBAI. ( / APPELLANT ) .. ( / RESPONDENT ) ./ I.T.A. NO . 3556 / MUM/ 2014 ( / ASSESSMENT YEA R: 2010 - 11 ) M/S HOOSEINI CO - OP CREDIT SOC.LTD., 496 - 498, SIR J J ROAD, OPP J J HOSPITAL, MUMBAI. / VS. INCOME TAX OFFICER 15(1)(4), MATRU MANDIR, ROOM NO.108, TARDEO ROAD, MUMBAI - 400007 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN. : AABAT4478P / REVENUE BY SHRI B D NAIK / ASSESSEE BY SHRI V IMAL PUNAMIYA / DATE OF HEARING : 9 .2.2016 / DATE OF PRONOUNCEMENT: 9 .2. 201 6 / O R D E R P ER B R BASKARAN, AM : THESE CROSS - APPEALS ARE DIRECTED AGAINST THE ORDER DATED 24.2.2014 PASS ED BY THE LD.CIT(A) - 26, MUMBAI AND THEY RELATE TO THE ASS ESSMENT YEAR 2010 - 11. 2965 /M/201 4 AND 3556/MUM/2014 2 2. THE ASSESSEE IS A CO - OPERATIVE SOCIETY AND REGISTERED UNDER THE CO - OPERATIVE SOCIETIES ACT, 1960. THE OBJECT OF THE SOCIETY IS TO ENABLE ITS MEMBERS TO SALE THEIR EARNING AND TO OBTAIN LOAN FROM THE SOCIETY. 3. THE ISSU E CONTESTED BY THE REVENUE RELATES TO THE CLAIM FOR DEDUCTION U/S 80P OF THE ACT. THE ASSESSEE CLAIMED DEDUCTION U/S 80P((2)(A)(I) OF THE ACT. THE AO TOOK THE VIEW THAT THE ASSESSEE FALLS UNDER THE CATEGORY OF CO - OPERATIVE BANK AND ACCORDING LY BY FOLL OWING THE PROVISIONS OF SECTION 80P (4) REJECTED THE CLAIM FOR DEDUCTION U/S 80P OF THE ACT. THE LD. CIT(A), HOWEVER, ALLOWED THE CLAIM OF THE ASSESSEE AND HENCE THE REVENUE HAS FILED THIS APPEAL BEFORE US. 4 . WE HAVE HEARD THE PARTIES ON THIS ISSUE A ND PERUSED THE RECORD. THE LD. AR PLACED RELIANCE ON THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF QUEPEM URBAN CO - OPERATIVE CREDIT SOCIETY LTD V/S ACIT REPORTED IN (2015) 377 ITR 272 (BOM) AND SUBMITTED THAT A CO - OPERATIVE SOCIETY TRANSA CTING MAINLY WITH ITS MEMBERS CANNOT BE TREATED AS CO - OPERATIVE BANK . THE LD. AR FURTHER SUBMITTED THAT IN THE CASE BEFORE THE HONBLE BOMBAY HIGH COURT, THE ASSESSEE THEREIN WAS PROVID ING CREDIT MAINLY TO ITS MEMBERS AND TRANSACTION WITH NON - MEMBERS WAS INSIGNIFICANT. DESPITE THIS FACT, THE HONBLE BOMBAY HIGH COURT HAS HELD THAT THE ASSESSEE THEREIN COULD NOT BE TREATED AS CO - OPERATIVE BANK AND ACCORDINGLY ALLOWED THE DEDUCTION U/S 80P OF THE ACT TO THE SAID ASSESSEE . THE LD. AR FURTHER SUBMITTED THA T THE ASSESSEE BEFORE US WAS PROVIDING A CREDIT ONLY TO ITS MEMBERS AND HENCE, THE CASE OF THE ASSESSEE STANDS IN STRONGER FOOTING. THE LD. AR FURTHER PLACED RELIANCE ON THE DECISION RENDERED BY THE SMC BENCH OF MUMBAI TRIBUNAL, IN M/S JAOLI TALUKA SAH AKARI PATPEDHI MARYADIT V/S ITO IN ITA NO.6627/MUM/2014 (AY - 2010 - 11) DATED 10.8.2015, WHEREIN THE TRIBUNAL , BY FOLLOWING THE DECISION OF HONBLE KARNAT AKA HIGH COURT IN THE CASE OF TUMKUR MERCHANTS SOUHARDA 2965 /M/201 4 AND 3556/MUM/2014 3 CREDIT CO - OPERATIVE LTD. (2015) (230 TAXMAN 309) AND ALSO THE DECISION RENDERED BY THE HONBLE SUPREME COURT IN THE CASE OF TOTGARS CO - OPERATIVE SALE SOCIETY LTD (2010) (229 CTR (SC) 209 ) HELD THAT THE DEDUCTION U/S 80P CANNOT BE REJECTED TO A CO - OPERATIVE SOCIETY. 5 . ON THE CONTRARY, TH E LD. DR PLACED STRONG RELIANCE ON THE ORDER O F AO. 6 . HAVING HEARD THE RIVAL CONTENTIONS , WE NOTICE THAT THE ISSUE RAISED BEFORE US STANDS SQUARELY COVERED BY THE DECISION OF THE HONBLE BOMBAY HIGH COURT OF BOMBAY RENDERED IN THE CASE OF QUEPEM URBAN CO - OPERATIVE CREDIT SOCIETY LTD (SUPRA) . SINCE THE DECISION RENDERED BY LD CIT(A) ON THIS ISSUE IS IN ACCORDANCE WITH THE BINDING DECISION OF HONBLE BOMBAY HIGH COURT, WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER PASSED ON THIS ISSUE. 7 . THE AP PEAL FILED BY THE ASSESSEE RELATES TO THE DECISION OF TAX AUTHORITIES IN ASSESSING THE INTEREST INCOME RECEIVED FROM FIXED DEPOSITS UNDER THE HEAD INCOME FROM OTHER SOURCES . THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION RENDER ED BY THE HONBLE KARNAT A KA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO - OPERATIVE LTD. (SUPRA), WHEREIN THE HONBLE HIGH COURT HAS HELD THAT THE INTEREST INCOME EARNED FROM DEPOSITS KEPT WITH BANK SHALL FORM PART OF BUSINES S I NCOME . ACCORDINGLY , THE DEDUCTION U /S 80P OF THE ACT IS ALLOWABLE TO THE INTEREST INCOME AS PER THE DECISION PASSED BY THE HONBLE KARNATAKA HIGH COURT. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD.CIT(A) ON THIS ISSUE AND DIRECT THE AO TO ASSESS THE INTEREST INCOME UND ER THE HEAD INCOME FROM BUSINESS AND ACCORDINGLY ALLOW THE DEDUCTION U/S 80P OF THE ACT . 2965 /M/201 4 AND 3556/MUM/2014 4 8 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED AND THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED ACCORDINGLY ON 9TH FEB , 2 01 6 . 9 TH FEB, 2 01 6 S D SD ( PAWAN SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 9TH FEB , 2 01 6 . . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, T RUE COPY (ASSTT. REGISTR AR) , /ITAT, MUMBAI