ITO-WARD-7(2), Nagpur V. M/S VISHAL NAGRI SAHAKARI PAT SANSTHA LTD., Nagpur

ITA 393/NAG/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1009 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2013

Judgement Text

M/SVISHAL NAGRI SAHAKARI SANSTHA LTD ITA 393/NAG/2013 CO 23/NAG/2013 1 IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. : 393 /NAG/2013 (ASSESSMENT YEAR: 2006-07) INCOME TAX OFFICER- WARD -7(2), ROOM NO. 518, 5TH FLOOR, MECL BUILDING, NAGPUR -440 006 VS VISHAL NAGRI SAHAKARI SANSTHA LTD, KORADI ROAD, MAHADULA, DIST NAGPUR -441 601 .: PAN: AAAJV 0417 E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NARENDRA KANE RESPONDENT BY : SHRI V V SARAMJANE CROSS OBJECTION (CO) 23/NAG/2013 ARISING OUT OF ITA NO. : 393 /NAG/2013, AY 2010-11 M/S VISHAL NAGRI SAHAKARI SANSTHA LTD, KORADI ROAD, MAHADULA, DIST NAGPUR -441 601 .: PAN: AAAJV 0417 E VS INCOME TAX OFFICER- WARD -7(2), ROOM NO. 518, 5TH FLOOR, MECL BUILDING, NAGPUR -440 006 (CROSS OBJECTOR) (RESPONDENT) APPELLANT-CROSS OBJECTOR BY : SHRI V V SARAMJANE RESPONDENT BY : SHRI NARENDRA KANE /DATE OF HEARING : 26-05-2015 / DATE OF PRONOUNCEMENT : 05-06-2015 ORDER PER MUKUL K. SHRAWAT, JM: THIS IS AN APPEAL FILED BY THE REVENUE AND THE RESPONDEN T- ASSESSEE IS IN CROSS OBJECTION ARISING FROM THE ORDER OF C IT(A)-II, NAGPUR, DATED 21.08.2013. THE REVENUE HAS RAISED THE FOLLOW ING GROUNDS: '1. WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) IS CORRECT IN HOLDING THAT THE ASSESSEE IS L IABLE FOR DEDUCTION U/S 80(2)(A)(I)? 2. WHETHER THE CIT(A) HAS ERRED IN HOLDING THAT THE ASSESSEE IS NOT A CO-OPERATIVE BANK FOR THE PURPOSE OF SECTION 80P(4) OF THE I.T. ACT? 3. WHETHER THE CIT(A) HAS NOT ERRED IN FAILING TO UPHOLD THE FINDINGS OF THE AO THAT THE ASSESSEE IS A CO-OPERAT IVE SOCIETY WHICH IS ALSO CO-OP. BANK AS PER PART-V OF BANKING REGULATION ACT?' 1.1) THE OBSERVATION OF THE AO, AS PER ORDER PASSED U/S 143(3) DATED 30TH NOVEMBER, 2012 WAS THAT THE ASSESSEE IS A CO- OPERATIVE CREDIT SOCIETY AND INVOLVED IN BANKING BUSINESS. T HE AO M/SVISHAL NAGRI SAHAKARI SANSTHA LTD ITA 393/NAG/2013 CO 23/NAG/2013 2 HAS FURTHER MENTIONED IN PARA 2 OF THE ASSESSMENT ORDE R THAT THE ASSESSEE HAS PROVIDED CREDIT FACILITIES TO ITS MEMBER. THE A UDITED REPORT AND OTHER DOCUMENTS WERE PRODUCED. IT WAS FURT HER NOTED THAT THE ASSESSEE HAD CLAIMED A DEDUCTION OF RS. 9,96,496/ - U/S 80P OF THE I.T. ACT. THE ASSESSEE WAS ASKED TO JUSTIFY THE ELIGIBILITY OF THE CLAIM OF DEDUCTION U/S 80P OF THE I.T. ACT, SPECIALLY INTRODUCED IN INCOME TAX ACT. THE OBSERVATION OF THE AO WAS THAT, AS PER THE PROVISIONS OF SECTION 80P(4) OF INCOME TAX ACT WERE THAT THE DEDUCTION U/S 80P IS NOT AVAILABLE TO A CO-OPERATIVE BANK, OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY, PRIMARY CO- OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK. ACCORDIN G TO THE AO, THE ASSESSEE WAS NEITHER A PRIMARY AGRICULTURAL C REDIT SOCIETY NOR A PRIMARY RURAL DEVELOPMENT BANK WITHIN THE M EANING OF PART V OF BANKING REGULATION ACT, 1949 THEREFORE, NOT ENTITLED FOR THE CLAIM. AFTER A DETAILED DISCUSSION, THE DEDUCTION U/S 80P WAS DENIED TO THE ASSESSEE. BEING AGGRIEVED, THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY. 2. WHILE DECIDING THIS ISSUE, LD. CIT(A) HAS RECORDED A FINDING THAT THE ITAT NAGPUR BENCH IN THE ASSESSEE'S OWN CAS E FOR AY 2009-10, HAS CONSIDERED THIS ISSUE IN FAVOR OF THE ASSESSE E. HE HAS THEREFORE ALLOWED THE BENEFIT OF THE DEDUCTION IN THE FOLLOWIN G MANNER: 'THIS GROUND IS DIRECTED AGAINST THE DISALLOWING TH E CLAIM OF DEDUCTION AT RS. 9,96,496/- U/S 80P . DURING THE COURSE OF APPELLATE PROCEEDINGS IT WAS SUBMITTED BY THE APPEL LANT THIS ISSUE STANDS COVERED IN ITS FAVOUR IN VIEW OF HON'BLE ITAT NAGPUR BENCH ORDER IN THE CASE OF APPELLANT IT SELF FOR AY 2009-10. A COPY OF THE SAID ORDER HAS BEEN PLACE D ON RECORD. I HAVE PERUSED THE SAID ORDER OF THE HON'BL E ITAT NAGPUR BENCH. IN PARA 6 OF THE SAID ORDER IT HAS BE EN HELD AS UNDER: 'WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OP INION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGA L INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS O F THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AND CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO-OPERATIVE BANKS A S ENVISAGED BY THE AOS IN THEIR ASSESSMENT ORDERS. IN OUR CONSIDERED OPINION, ASSESSEE CO-OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTIONS AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY I NVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. WE FULLY AGREE WITH THE F'AAS THAT THE APPELLANTS A RE CREDIT M/SVISHAL NAGRI SAHAKARI SANSTHA LTD ITA 393/NAG/2013 CO 23/NAG/2013 3 CO-OPERATIVE SOCIETIES AND NOT CO-OPERATIVE BANKS A ND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAI LABLE UNDER CHAPTER VI-A OF THE ACT. AS POINTED OUT BY TH E ARS OF THE ASSESSEES, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO-OP. SO CIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER, WE DEC IDE THE ALL THE GROUNDS OF APPEALS AGAINST THE AOS'. 2.1 APART FROM DECISION PRONOUNCED BY RESPECTED CO-ORDIN ATE BENCH NAGPUR IN ASSESSEE'S OWN CASE, WE HAVE ALSO BEEN INFORMED THAT IN THE BUNCH OF CASES ITAT 'E' BENCH, NAGPUR VIDE AN ORDER DATED 1ST FEBRUARY, 2013 OF CASES OF ITAT 'E' BENCH, (AT SERIAL NO. 1, VIDE ITA NO. 68/NAG/2012 (AY 2008-09) IN THE CASE OF ITO VS. M/S SHREE GOPALAKRISHNA URBAN CREDIT CO-OPERATIVE SOCIET Y MARYADIT, NAGPUR) & OTHERS, WHEREIN E-BENCH OF NAGPUR TRIB UNAL, WHILE GRANTING THE BENEFIT OF DEDUCTION IN FAVOUR OF THE ASSE SSEE AND AGAINST THE REVENUE, HELD AS UNDER: 'WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OP INION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGA L INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS O F THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AND CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO-OPERATIVE BANKS A S ENVISAGED BY THE AOS IN THEIR ASSESSMENT ORDERS. IN OUR CONSIDERED OPINION, ASSESSEE CO-OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTIONS AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY I NVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. WE FULLY AGREE WITH THE F'AAS THAT THE APPELLANTS A RE CREDIT CO-OPERATIVE SOCIETIES AND NOT CO-OPERATIVE BANKS AND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAI LABLE UNDER CHAPTER VI-A OF THE ACT. AS POINTED OUT BY TH E ARS OF THE ASSESSEES, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO-OP. SO CIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER, WE DEC IDE THE ALL THE GROUNDS OF APPEALS AGAINST THE AOS'. AND, THEREFORE, UNDER THE TOTALITY OF THE FACTS AND CIRCU MSTANCES OF THE CASE, AS ALSO RESPECTFULLY FOLLOWING THE PRECEDENTS HER EINABOVE, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE HENCE, DISMISSED. 3. AS FAR AS CROSS OBJECTION OF THE ASSESSEE IS CONCERNE D, WE HAVE NOTED THAT NO LEGAL OR FACTUAL CONTROVERSY HAS BEE N RAISED. ALL THE GROUNDS OF THE CROSS OBJECTION HAVE SIMPLY SUPPORT ED THE VERDICT OF LD. CIT(A). IN THE LIGHT OF THE ABOVE DECISION/ORDE R, TAKEN BY US WHILE DECIDING REVENUE'S APPEAL AND ALSO IN A SITUATIO N WHEN M/SVISHAL NAGRI SAHAKARI SANSTHA LTD ITA 393/NAG/2013 CO 23/NAG/2013 4 NO SPECIFIC GRIEVANCE HAS BEEN RAISED BY THE ASSESSEE IN THE CROSS OBJECTION, WE, HEREBY, DISMISS THE CO IN LIMINE . 4. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS OBJEC TION OF THE ASSESSEE BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH JUNE, 2015. SD/- SD/- (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATE: 5 TH JUNE, 2015 !/ COPY TO:- 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT(A) -II, NAGPUR. 4) THE CIT-IV, NAGPUR. 5) NAGPUR / THE D.R. ITAT, NAGPUR BENCH, NAGPUR. 6) '#$ % COPY TO GUARD FILE. BY ORDER ASSTT. REGISTRAR I.T.A.T., NAGPUR *CHAVAN, SR.PS