Appeal details
Counselvise Citation
[2015] 121 COUNSELVISE.COM (IT) 1016 (ITAT-NAGPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 5 month(s) 14 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
17-07-2015
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2010-2011
Appeal Filed On
03-02-2014
Judgement Text
1 ITA NO. 51/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T. A. NO. 51 /NAG/201 4. ASSESSMENT YEAR : 2010 - 11. THE INCOME - TAX OFFICER, BALLARPUR COLLIERY EMPLOYEES WARD - 1, CHANDRAPUR. V/S. COOPERATIVE SOCIETY LTD., BALLARPUR, DIST. CHANDRAPUR. PAN AAAAB2393L. (APPELLANT) RESPONDENT. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : SHRI S.S. DANI. DATE OF HEARING : 22 - 06 - 2015 DATE OF PRONOUNCEMENT : 17 TH JULY, 2015. O R D E R PER SHRI MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE REVENUE ARISING FROM THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 13 - 11 - 2013. THE SUBSTANTIVE GROUNDS ARE REPRODUCED BELOW : 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) IS CORRECT IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE I.T. ACT, 1961? 2. WHETHER THE CIT(A) HAS ERRED IN HOLDING THAT ASSESSEE IS NOT A CO - OPERATIVE BANK FOR THE PURPOSE OF SECTION 80P(4) OF THE I.T. ACT? 2 ITA NO. 51/NAG/2014 3. WHETHER THE CIT(A) HAS NOT ERRED IN FAILING TO UPHOLD THE FINDING OF THE ASSESSING OFFICER THAT THE ASSESSEE IS A COOPERATIVE SOCIETY WHICH IS CO - OPERATIVE BANK AS PER PART - V OF THE B.R.A? 2. AT THE OUTSET, WE HAVE BEEN INFORMED THAT THE ASSESSEES CA SE IS COVERED BY A DECISION OF ITAT, NAGPUR BENCH, ORDER DATED 12 - 09 - 2014 WHEREIN THE TRIBUNAL HAS DECIDED A BUNC H OF 10 CASES AND THE ASSESSEES APPEAL IS AT SR.NO. 10 TITLED AS BALLARPUR COLLIERY EMPLOYEES CO - OP. CREDIT SOCIETY LTD., BALLARPUR V/S. ITO, WARD - 1, CHANDRAPUR (ITA NO. 359 / NAG / 2012 A.Y. 2009 - 10). HOWEVER, THE FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING ASSESSMENT ORDER PASSED U/S 143(3) DATED 24 - 12 - 2012 WERE ALSO IDENTICAL BECAUSE IT WAS MENTIONED THAT THE ASSESSEE IS A COOPERATIVE CRED IT SOCIETY AND PROVIDING CREDIT FACILITY TO ITS MEMBERS. THE ASSESSING OFFICER HAS INVOKED THE PROVISIONS OF SECTION 80P(4) OF THE I.T. ACT AND ASSESSED THE INCOME OF THE ASSESSEE AFTER DISALLOWING THE CLAIM OF DEDUCTION UNDER SECTION 80P(2)(A) (I) OF THE I.T. ACT. 3. WHEN THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY, LEARNED CIT(APPEALS) HAS DISCUSSED THE ISSUE AT LENGTH AND THEREAFTER DIRECTED THE ASSESSING OFFICER TO GRANT DEDUCTION UNDER SECTION 80P (2)(A)(I) OF THE I.T. ACT. 3.1. SINCE THE RESPECTED COORDINATE BENCH HAS ALREADY TAKEN A VIEW IN ASSESSEES OWN CASE IN THE PAST, THEREFORE, WE HAVE NO REASON TO TAKE ANY OTHER VIEW BUT TO FOLLOW THE VIEW ALREADY TAKEN, RELEVANT PORTION FROM THE ORDER OF ITAT IS REPRODUCED BELOW : 3. AT THE TIME OF HEARING, THE AR SUBMITS THAT THE IDENTICAL ISSUE HAS BEEN DECIDED BY THIS IN ITA NO. 142/NAG/2011 FOR A.Y. 2008 - 09 IN THE CASE OF ITO V/S. M/S INDER COLLIERY EMPLOYEES CREDIT CO - OP SOCIETY LTD., VIDE ORDER DATED 10/09/2014, WHEREIN IT HAS BEEN HELD, 3 ITA NO. 51/NAG/2014 6. AT THE TIME OF HEARING, THE AR POINTED OUT THAT THE ISSUE IS NOW COVERED BY VARIOUS DECISIONS OF THE COORDINATE BENCHES OF THE ITAT AND BY THE DECISION OF THE ORDER OF THE ITAT ASSESSEES IN ASSESSEES OWN CASE IN ITA NO.85/NAG/201 2 FOR ASSESSMENT YEAR 2009 - 10, WHEREIN IDENTICAL GROUNDS WERE TAKEN BY THE DEPARTMENT. THE NAGPUR BENCH OF ITAT, THUS HELD, WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OPINION THAT ORDERS OF FAAS DO NOT SUFFER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS OF THE ACT AND THE CIRCULAR( ISSUED BY RBI AND CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO - OPERATIVE BANKS AS ENVISAGED BY THE AOS IN THEIR ASSESSME NT ORDERS. IN OUR CONSIDERED OPINION ASSESSEE CO - OPERATIVE SOCIETY CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTION AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS ABO VE BY THE AOS. WE FULLY AGREE WITH THE FAAS THAT THE APPELLANTS ARE CREDIT CO - OPERATIVE SOCIETIES AND NOT CO - OPERATIVE BANKS AND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAILABLE UNDER CHAPTER VIA OF THE ACT. AS POINTED OUT BY THE ARS OF THE ASSESSEE, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO - OP SOCIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER, WE DECIDE THE ALL THE GROUNDS OF APPEALS AGAINST THE AOS. 7. THE AR, FURTHER SUBMITTED THAT THE DEPARTMENT TOOK THE ISSUE BEFORE THE HONBLE BOMBAY HIGH COURT IN APPEAL U/S 260A, WHEREIN THE HONBLE BOMBAY HIGH COURT DISMISSED THE APPEALS OF THE DEPARTMENT. 8. THE DR RELIED ON THE ORDER OF THE AO, BUT A CCEPTED THAT THE ISSUE NOW STANDS DISMISSED BY THE HONBLE BOMBAY HIGH COURT IN THEIR APPEAL. 9. RESPECTFULLY, THEREFORE, FOLLOWING THE DECISION OF ITAT NAGPUR BENCH AND THE HONBLE BOMBAY HIGH COURT, WE ARE OF THE OPINION 4 ITA NO. 51/NAG/2014 THAT THE ISSUE IS NO W RESTED AND THERE IS NO REASON FOR US TO DIFFER FROM THE ORDERS, WHEN FACTS ARE IDENTICAL. 10. WE, THEREFORE, SUSTAIN THE ORDER OF THE CIT(A) AND CONSEQUENTIALLY REJECT BOTH THE GOA, WHICH ARE INTERLINKED. 11. IN THE RESULT, THE APPEAL, AS FIL ED BY THE DEPARTMENT IS DISMISSED. 4. AS ISSUE INVOLVED IN THIS 10 APPEALS FILED BY THE DEPARTMENT ARE IDENTICAL TO THE ISSUE DECIDED BY US M/S INDER COLLIERY EMPLOYEES CREDIT CO - OP. SOCIETY LTD. (SUPRA) VIDE OUR ORDER DATE 10.09.2014. FOLLOWING T HE SAME, WE DISMISS ALL THE 10 APPEALS FILED BY THE DEPARTMENT. 3.2 IN ADDITION TO THE ABOVE CITED ORDER OF THE TRIBUNAL, THERE ARE FEW OTHER DECISIONS AS WELL, REFERRED BELOW FOR THE SAKE OF COMPLETENESS OF THIS JUDGMENT: 1) ITA NO. 393/NAG/2013 & C.O. NO. 23/NAG/2013 DATED 5 TH JUNE, 2015 IN THE CASE OF ITO V/S. VISHAL NAGRI SAHAKARI SANSTHA LTD. RELEVANT PORTION REPRODUCED BELOW : 2.1 APART FROM DECISION PRONOUNCED BY RESPECTED CO - ORDINATE 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 SH REE GOPALAKRISHNA URBAN CREDIT CO - OPERATIVE SOCIETY MARYADIT, NAGPUR) & OTHERS, WHEREIN E - BENCH OF NAGPUR TRIBUNAL, WHILE GRANTING THE BENEFIT OF DEDUCTION IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE, HELD AS UNDER: 'WE HAVE HEARD THE RIVAL SUBMIS SIONS AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OPINION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS OF THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AND CBDT) THEY HAVE HELD THAT ASSESSEES WERE NOT A CO - OPERATIVE BANKS AS 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 INVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. WE FULLY AGREE WITH THE 5 ITA NO. 51/NAG/2014 F'AAS THAT THE APPELLANTS ARE CREDIT CO - OPERATIVE SOCIETIES AND NOT CO - OPERATIVE BANKS AND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVA ILABLE UNDER CHAPTER VI - A OF THE ACT. AS POINTED OUT BY THE ARS OF THE ASSESSEES, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO - OP. SOCIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER, WE DECIDE THE ALL THE GROUND S OF APPEALS AGAINST THE AOS'. AND, THEREFORE, UNDER THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, AS ALSO RESPECTFULLY FOLLOWING THE PRECEDENTS HEREINABOVE, WE FIND NO FORCE IN THIS GROUND OF THE REVENUE HENCE, DISMISSED. 2) ITA NO. 391/NAG/2013 & ITA NO. 397/NAG/2013 DATED 27 - 05 - 2015 IN THE CASE OF ITO V/S. M/S BLACK DIAMOND KARMACHARI CREDIT CO - OP. SOCIETY. RELEVANT PORTION REPRODUCED BELOW: 2. UPON HEARING LEARNED DEPARTMENTAL REPRESENTATIVE AND THE MANAGER OF THE S OCIETY, WE FIND THAT ITAT NAGPUR BENCH IN ASSESSEES OWN CASE IN ITA NO. 156/NAG/2012 FOR ASSESSMENT YEAR 2009 - 10 VIDE ORDER DATED 06.02.2013 HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY HOLDING AS UNDER: WE HAVE HEARD THE RIVAL SUBMISSIONS AND PE RUSED THE ORDERS OF THE REVENUE AUTHORITIES. WE ARE OF THE OPINION THAT ORDERS OF THE FAAS DO NOT SUFFER FROM ANY LEGAL INFIRMITY. AFTER ANALYZING THE VARIOUS PROVISIONS OF THE ACTS AND THE CIRCULARS (ISSUED BY THE RBI AND CBDT) THEY HAVE HELD THAT ASSESSE ES WERE NOT A CO - OPERATIVE BANKS AS ENVISAGED BY THE AOS IN THEIR ASSESSMENT ORDERS. IN OUR CONSIDERED OPINION, ASSESSEE CO - OPERATIVE SOCIETIES CANNOT BE DEPRIVED OF THE BENEFITS OF DEDUCTION AVAILABLE AS PER THE PROVISIONS OF SECTION 80P(2)(A) OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 80P(4) OF THE ACT, AS DONE BY THE AOS. WE FULLY AGREE WITH THE FAAS THAT THE APPELLANTS ARE CREDIT CO - OPERATIVE SOCIETIES AND NOT CO - OPERATIVE BANKS AND THEREFORE THEY ARE ENTITLED TO CLAIM DEDUCTION AVAILAB LE UNDER CHAPTER VI - A OF THE ACT. AS POINTED OUT BY THE ARS OF THE ASSESSEE, WE HAVE PASSED SIMILAR ORDER IN THE CASE OF MEDICAL COLLEGE HOSPITAL EMPLOYEES CREDIT CO. - OP. SOCIETY LTD., (SUPRA). FOLLOWING OUR OWN SAID ORDER, WE DECIDE THE ALL THE GROUNDS OF APPEALS AGAINST THE AOS. 3. SINCE THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ITATS DECISION IN ASSESSEES OWN CASE, WE UPHOLD THE ORDER OF LEARNED CIT(A). 6 ITA NO. 51/NAG/2014 3) ITA NOS. 357/NAG/2012, 359/NAG/2013, 361/NAG/2013 & 371/NAG/2013 DATED 27 - 05 - 2015 IN THE CASE OF ITO V/S. Z.P. PRIMARY TEACHERS CREDIT CO - OP. SOCIETY LTD. AND OTHERS. RELEVANT PORTION REPRODUCED BELOW : 7. NOW, WE FIND THAT IT IS UNDISPUTED, THAT THESE CO - OPERATIVE SOCIETIES ARE ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS. IT IS NOT AT ALL THE CASE THAT THEY ARE PROVIDING SERVICES OR FACILITIES TO THE PUBLIC AT LARGE. THE DECISION REFERRED BY THE LD. DR IN THE CASE OF 144 CTR 240, IS THE JUDGMENT OF HONBLE MADRAS HIGH COURT AND SAME WAS DELIVERED IN THE CONTEXT OF EXGIBILITY TO INTEREST TAX ACT. IN OUR CONSIDERED OPINION, THE FACTS OF THE CASE AND RATIO EMANATING THEREFROM ARE NOT AT ALL APPLICABLE TO THE FACTS OF THE CASE. WE NOTE THAT NAGPUR TRIBUNAL ITSELF HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSES IN BATCH OF GROUP OF CASES BY ORDER DATED 1 ST FEBRUARY, 2013, WHICH INCLUDED ONE OF THE ASSESSEES M/S INDER COLOUR CREDIT CO - OP. SOCIETY. TWO OF THE CASES IN THE SAID CASE ALSO TRAVELLED TO THE HONBLE JURISDICTIONAL HIGH COURT. BY THE ORDER DATED 26 TH S EPTEMBER, 2013 IN ITA NO. 59 & 60 OF 2013. THE HONBLE JURISDICTIONAL HIGH COURT HAS DISMISSED THE REVENUES APPEAL IN THIS REGARD. 8. IN THE AFORESAID BACKGROUND OF DISCUSSION AND PRECEDENT, IN OUR CONSIDERED OPINION, THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT(A). ACCORDINGLY, WE UPHOLD THE SAME. 4. IN THE LIGHT OF ABOVE DISCUSSION, GROUNDS RAISED BY THE REVENUE ARE HEREBY DISMISSED. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF JULY, 2015. SD/ - SD/ - ( SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER. JUDICIAL MEM BER NAGPUR, DATED: 17 TH JULY, 2015. 7 ITA NO. 51/NAG/2014 COPY OF ORDER FORWARDED TO : 1. THE ASSESSEE. 2. REVENUE. 3. THE CIT(A) 4. THE CIT, NAGPUR. 5. THE D.R., ITAT, NAGPUR. 6. GUARD FILE. TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR
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