JOINT CIT (OSD),CIRCLE-3, KALYAN V. BAHUJAN VIDYUT EMPLOYEES CO-OPERATIVE SOCIETY LIMITED, MUMBAI

ITA 3914/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7251 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 01-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITNYA ANJARIA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO. 3914 /MUM./2018 ( ASSESSMENT YEAR : 20 14 15 ) JT . COMMISSIONER OF INCOME TAX (OSD) CIRCLE 3, KALYAN .. APPELLANT V/S BAHUJAN VIDYUT EMPLOYEES CO OPERATIVE SOCIETY LTD. 503, 5 TH FLOOR, BPS AANANDA SHUDHANSHU CHAMBER NEAR RAILWAY STATION KALYAN 421 301 THANE PAN AAAAB4574D .... RESPONDENT REVENUE BY : SHRI CHAITNYA ANJARIA ASS ESSEE BY : NONE DATE OF HEARING 23 .0 4 .2019 DATE OF ORDER 23.04.2019 O R D E R PER SHAMIM YAHYA, A.M. THE PRESENT APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 26 TH MARCH 2018 , PASSED BY LEARNED COMMISSIONER (APPEALS) 1 , THANE, PERTAINING TO THE ASSESSMENT YEAR 20 14 15 . 2 BAHUJAN VIDYUT EMPLOYEES CO OPERATIVE SOCIETY LTD. 2 . GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 40,03 ,0801 - ON ACCOUNT OF DISALLOWANCE U/S 80P(2)(A)(I) OF THE ACT. 2.1 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN GRANTING ABOVE RELIEF TO THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE IS CARRYING ON THE BUSINESS OF ACCEPTING DEPOSITS AND ADVANCING LOANS TO ITS MEMBERS WHICH ARE THE PRIMARY ACTIVITIES OF ANY BANK WHETHER CO - OPERATIVE OR OTHERWISE. 2.2 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) E RRED IN NOT APPRECIATING THE FACT THAT THE ASSESSEES IS A CO OPERATIVE SOCIETY WHOSE SHARE CAPITAL AND RESERVES EXCEED RS.1,00,000/ - . 2.3 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE HON'BLE CIT(A) ERRED IN NOT APPRECIATING THE FACT THAT THE A SSESSEE IS REGISTERED UNDER THE MAHARASHTRA STATE CO - OPERATIVE SOCIETIES ACT. 3 . WHEN THE CASE WAS CALLED FOR HEARING, NONE APPEARED ON BEHALF OF THE RESPONDENT ASSESSEE. 4 . THE LEARNED DEPARTMENTAL REPRESENTATIVE, A T THE OUTSET, FAIRLY SUBMITTED BEFORE US THAT THE TAX EFFECT ON THE QUANTUM OF ADDITIONS CONTESTED BY THE REVENUE IS LESS THAN THE PRESCRIBED LIMIT OF ` 20 LAKH FIXED FOR FILING OF APPEAL BEFORE THE INCOME TAX APPELLATE TRIBUNAL, HENCE, I S COVERED BY CIRCULAR NO.3/2018, DATED 11 TH JULY 2018, ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT). 3 BAHUJAN VIDYUT EMPLOYEES CO OPERATIVE SOCIETY LTD. 5 . WE HAVE GONE THROUGH THE CBDT CIRCULAR AS REFERRED TO ABOVE AND FIND THAT THE TAX EFFECT ON THE QUANTUM OF ADDITIONS DISPUTED BY THE REVENUE IN THE PRESENT APPEAL IS BELOW THE THRESHOLD LIMIT OF ` 20 LAKH. T HEREFORE, AS PER THE CBDT CIRCULAR REFERRED TO ABOVE, THE APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE , SINCE, THE AFORESAID CIRCULAR BY CBDT APPLIES EVEN TO THE PENDING APPEALS. IN VIEW OF THE AFORESAID, WE HOLD THAT THE APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. 2 . IN THE RESULT, REVENUES APPEAL STANDS DISMISSED. ORDER PR ONOUNCED IN THE OPEN COURT ON 23 .0 4 .2019 SD/ - RAVISH SOOD JUDICIAL MEMBER SD/ - SHAMIM YAHYA ACCOUNTANT MEMBER MUMBAI, DATED: 23 .0 4 .2019 COPY OF THE ORDER FORWARDED TO : ( 1 ) THE ASSESSEE; ( 2 ) THE REVENUE; ( 3 ) THE CIT(A); ( 4 ) THE CIT, MUMBAI CITY CONCERNED; ( 5 ) THE DR, ITAT, MUMBAI; ( 6 ) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (DY./ASSTT. REGISTRAR) ITAT, MUMBAI