1915 Vellalapatty Primary Agricultural Co-op Credity Society Ltd., Salem V. ITO, Salem

ITA 385/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77250 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 17-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI IRS
• Assessee Lawyers: T VASUDEVAN
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! , ' # $ BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / I.T.A. NOS. 385 & 386/MDS/2014 / ASSESSMENT YEARS : 2007-08 & 2008-09. M/S. 1915 VELLALAPATTY PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD, VELLALAPATTY POST, OMALUR TK, SALEM DIST 636 012 [PAN: AAAAN8675P] ( !% /APPELLANT) VS THE INCOME TAX OFFICER, WARD II(4), SALEM. ( &'!% /RESPONDENT) . / I.T.A. NO. 387/MDS/2014 / ASSESSMENT YEAR : 2007-08. M/S. S-6648 ATTUR MULLUVADI PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LTD, MULLUVADI POST, ATTUR TK, SALEM DIST 636 141. [PAN: AADTS6244D] ( !% /APPELLANT) VS THE INCOME TAX OFFICER, WARD II(3), SALEM. ( &'!% /RESPONDENT) / APPELLANTS BY : SHRI T. VASUDEVAN, ADVOCATE / RESPONDENT BY : SHRI T.N. BETGERI, IRS, JCIT. / DATE OF HEARING : 01-05-2014 ! / DATE OF PRONOUNCEMENT : 01-05-2014 I.T.A.NOS.385,386 & 387/MDS/2014 :- 2 -: #( / O R D E R PER DR. O.K. NARAYANAN, VICE PRESIDENT THESE THREE APPEALS ARE FILED BY TWO ASSESSEES W HO ARE CO-OPERATIVE SOCIETIES. THE RELEVANT ASSESSMEN T YEARS ARE 2007- 2008 AND 2008-2009. THESE APPEALS ARE DIRECTED AGA INST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) AT SALEM, ALL DATED 31.12.2013. THE APPEALS ARISE OUT OF THE ASSESSMEN TS COMPLETED UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX A CT, 1961. 2. THE COMMON ISSUE RAISED IN ALL THESE THREE APPEALS IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN C ONFIRMING THE ORDER OF THE ASSESSING AUTHORITY IN DENYING THE CLA IM OF BENEFITS AVAILABLE U/S. 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961. THE CASE OF THE ASSESSEES IS THAT THEY ARE PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETIES AND SATISFY THE STATUTORY REQUIREMENTS OF PROVIDING CREDIT FACILITIES TO THEIR MEMBERS. THERE IS NO BASIS FOR THE FINDINGS OF THE LOWER AUTHORITIES THAT B CLASS ARE NON-MEMBERS AN D PROVIDING CREDIT FACILITIES TO SUCH NON-MEMBERS MAKES THE ASSESSEES NON-ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I). I.T.A.NOS.385,386 & 387/MDS/2014 :- 3 -: 3. THIS ISSUE HAS BEEN CONSIDERED BY INCOME T AX APPELLATE TRIBUNAL, CHENNAI B BENCH IN THE CASES OF SL(SPL) 151, KARKUDALPATTY PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY LT D AND S 1382, MULLUKURUCHI PRIMARY AGRICULTURAL CO-OPERATIVE CRED IT SOCIETY LTD THROUGH THEIR ORDERS DATED 17.03.2014. AFTER PERUS ING THE RELEVANT PROVISIONS OF STATE CO-OPERATIVE SOCIETIES ACT, 198 3, GOVERNING SIMILAR ASSESSEES, THE TRIBUNAL FOUND THAT DEFINITION OF M EMBERS INCLUDES ASSOCIATE MEMBERS, AS WELL. THE TRIBUNAL FOUND T HAT SUCH NOMINAL MEMBERS ALSO ENJOY STATUTORY RECOGNITION AS PER THE STATE CO- OPERATIVE SOCIETIES ACT. THE TRIBUNAL FURTHER OBSE RVED THAT THE OBJECTIONS OF THE REVENUE THAT MEMBERS DEFINED IN SUB-CLAUSE (I) OF SECTION 80P(2) SHOULD ONLY INCLUDE VOTING MEMBERS, WOULD AMOUNT TO A CLASSIFICATION WITHIN CLASSIFICATION WHICH IS BEYON D THE PURVIEW OF TAXING STATUTE; UNLESS PROVIDED SPECIFICALLY BY THE LEGISL ATURE. 4. THEREFORE, WE FIND THAT THE ISSUE RAISED IN T HESE APPEALS STANDS ADJUDICATED BY THE TRIBUNAL IN FAVOUR OF THE ASSESS EES. ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES ON TH IS POINT AND DIRECT THE ASSESSING AUTHORITY TO GRANT THE BENEFIT TO THE ASSESSEE- SOCIETIES AVAILABLE U/S. 80P(2)(A)(I). I.T.A.NOS.385,386 & 387/MDS/2014 :- 4 -: 5. IN RESULT, THESE APPEALS FILED BY THE ASSE SSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT THE T IME OF HEARING ON THURSDAY, THE 1 ST OF MAY, 2014 AT CHENNAI. SD/- SD/- ( ! ) (VIKAS AWASTHY) ' # / JUDICIAL MEMBER ( . . . ) (DR. O.K. NARAYANAN) / VICE PRESIDENT DATED:1 ST MAY, 2014. K.V '# $% &% /COPY TO: 1. ' APPELLANT 2. / RESPONDENT 3. ( ( )/CIT(A) 4. ( /CIT 5. %)* + /DR 6. *, - /GF.