GIC EMPL COOP THRIFT AND CREDIT SOCIETY LTD., CHENNAI V. ITO, NON COP. WARD-3(1), CHENNAI

ITA 466/CHNY/2023

AI Insights

The case involves GIC EMPL Coop. Thrift and Credit Society Ltd., a Multi-State Cooperative society, which appealed against the disallowance of deduction under section 80P of the Income Tax Act for the assessment years 2013-14, 2014-15, 2015-16, and 2017-18. The Income Tax Officer had rejected the deduction claim, treating the society as functioning like a cooperative bank, and thus ineligible for the deduction. The first appellate authority upheld this decision due to the absence of necessary documents and details from the assessee. The Tribunal, after hearing the arguments and considering the submitted documents, decided to remand the matter back to the AO for a fresh assessment, allowing the assessee to substantiate its claims.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134481 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-08-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 10-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148; 80P; 201

Judgement Text

आयकर अपीलीय अिधकरण, 'सी’ ायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI ी मनोज कु मार अ वाल, लेखा सद# एवं ी मनोमोहन दास, ाियक सद# के सम' BEFORE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SHRI MANOMOHAN DAS, JUDICIAL MEMBER आयकर अपील सं./ ITA Nos. 464, 465, 466 & 467/Chny/2023 िनधा(रण वष( /Assessment Years: 2013-14, 2014-15, 2015-16 & 2017-18 GIC EMPL Coop. Thrift and Credit Society Ltd., “709/710 Flat No. 201 2 nd Floor Prime Centre Pathari Road Off Anna Salai” Chennai – 6000006 Tamil Nadu. Vs. The Income Tax Officer , Non Corporate Ward-3(1), Chennai. [PAN: AAGFG-7223-D] ( अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : Shri N. Arjun Raj, C.A. यथ क ओर से /Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई क तारीख/Date of Hearing : 23.08.2023 घोषणा क तारीख /Date of Pronouncement : 30.08.2023 आदेश / O R D E R PER MANOMOHAN DAS, J.M: Aforesaid four appeals by assessee for captioned Assessment Years arises out of separate order of learned first appellate authority. However, the grievance of the assessee is confirmation of disallowance of the deduction u/s 80P as claimed by the assessee. ITA Nos.464 to 467/Chny/Chny/2023 :- 2 -: Since, identical issue is involved, we proceed to dispose-off the same through a common order under appeal No. ITA 464 / Chny / 2023. 2. The Registry has noted a delay of 08 days in the appeals. The Assessee filed a petition seeking condonation of delay citing the reason that the health of the authorized person was not in order and he had to be admitted in the hospital due to adverse medical conditions. Considering the period of delay, the delay is condoned and all the appeals are admitted for adjudication on merits. 3. The facts of the case are that the assessee is a Multi-State Cooperative society registered under the Cooperative Societies Act and is engaged in providing credit facilities to its members. The assessee failed to file its return of income for the relevant assessment year. Notice u/s 148 of the Act was issued to the society on the basis of the information available with the Department that the assessee made huge deposits in the bank and earned interest income. As per information the assessee deposited cash of Rs. 2,86,00,000/- in SB account and earned interest of Rs. 2.06 lakhs. In response, the assessee filed its return of income for AY 2013-14 on 26-04-2021 declaring gross total income of Rs. 4,77,59,789/- and made a claim for deduction u/s 80P. The Ld. AO rejected the claim of the assessee and ITA Nos.464 to 467/Chny/Chny/2023 :- 3 -: completed the assessment vide order dated 26-03-2022 adding the amount of Rs. 4,77,59,789/- to total income of the assessee. The Ld. AO observed that the assessee was functioning like a cooperative bank and therefore, it cannot claim deduction u/s 80P of the Act. 4. Being aggrieved, assessee filed first appeal before Ld. CIT(A) without any success. The Ld. CIT(A), vide impugned order dated 02- 02-2023, observed that the assessee failed to produce accounting document or audit report, details of interest paid or received from members. The basic details like list of members and yearly transactions were not furnished. Therefore, the assessment was confirmed against which the assessee is in further appeal before us. 5. Heard the representatives of both the parties and perused the material on record. The Ld. AR made prayer for remand of the matter considering the fact that requisite details could not be filed. The ld. AR submitted that the assessee is not a cooperative bank and therefore, it is eligible for deduction u/s 80P of the Act. No license is obtained by the assessee from the Reserve Bank of India for carrying on banking business. The Ld. AR produced a paper book for consideration. Per contra, the Ld. DR submitted that the assessee failed to file return of income. The Ld. DR further submitted that the paper book containing the materials/documents were not submitted before the lower authorities. Therefore, Ld. DR pleaded for dismissal of appeals. ITA Nos.464 to 467/Chny/Chny/2023 :- 4 -: 6. We have carefully considered the submissions of the parties. We are of the considered opinion that the paper book containing the materials / documents should be considered by the lower authorities first. The Ld. CIT(A) in his order recorded that the assessee did not file relevant materials so as to substantiate its claim for deduction under section 80P. The Ld. AR sought for remand of the matter so that the assessee can produce the relevant documents/materials and substantiate its claim before the lower authority. Therefore, accepting the plea of Ld. AR, the issue of assessment, in all the years, is restored back to the file of Ld. AO for denovo assessment with a direction to the assessee to substantiate its claim. Ordered accordingly. 7. In the result, all the appeals stand allowed for statistical purposes. Order pronounced on 30 th August, 2023. Sd/- Sd/- (मनोज मनोजमनोज मनोज कुमार कुमारकुमार कुमार अ वाल अ वालअ वाल अ वाल) (Manoj Kumar Aggarwal) लेखा लेखालेखा लेखा सद य सद यसद य सद य /Accountant Member (मनोमोहन दास) (Manomohan Das) ाियक सद /Judicial Member चे ई/Chennai, दनांक/Dated: 30 th August, 2023. EDN/- आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ+/Appellant 2. ,-थ+/Respondent 3. आयकर आयु./CIT 4. िवभागीय ,ितिनिध/DR 5. गाड( फाईल/GF