ITO 28(3)(2), NAVI MUMBAI V. SHRI KULSWAMI CO-OP. CREDIT SOCIETY LTD., NAVI MUMBAI

ITA 5309/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0235 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 26-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V VIDHYADHAR
• Assessee Lawyers: RAJENDRA V KADREKAR
• Keywords: Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 5309/MUM/2016 (ASSESSMENT YEAR: 2012-13) INCOME TAX OFFICER - 28(3)(2) ROOM NO. 318, VASHI RLY STN. COMPLEX, TOWER NO. 6 3RD FLOOR, VASHINAVI MUMBAI 400703 VS. M/S. SHRI KULSWAMI CO - OP CREDIT SOCIETY LTD. F-3, 1ST FLOOR, CENTRAL FACILITY BUILDING, APMC MARKET SECTOR 19, TURBHE NAVI MUMBAI 400705 PAN AAAAS2059L APPELLANT RESPONDENT APPELLANT BY: SHRI V. VIDHYADHAR RESPONDENT BY: SHRI RAJENDRA V. KADREKAR DATE OF HEARING: 19.02.2018 DATE OF PRONOUNCEMENT: 21.02.2018 O R D E R PER C.N. PRASAD, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A)-26, MUMBAI DATED 22.06.2016 FOR A.Y. 2012-13 . 2. THE ONLY ISSUE IN THE APPEAL OF THE REVENUE IS THAT THE CIT(A) ERRED IN DELETING THE ADDITION OF ` 3,26,27,381/- BY HOLDING THAT THE ASSESSEE BEING A COOPERATIVE CREDIT SOCIETY IS NOT AS COOPER ATIVE BANK AND IS ENTITLED FOR DEDUCTION UNDER SECTION 80P OF THE INCOME TAX A CT, 1961 (HEREINAFTER THE ACT). 3. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITS THAT THE ISSUE INVOLVED IN THE APPEAL IS SQUARELY COVERED BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE IN IT APPEAL NOS. 1682 & 1873 OF 2014 DATED 20.03.2017, COPY OF WHICH IS P LACED ON RECORD. REFERRING TO THE SAID DECISION THE LEARNED COUNSEL SUBMITS THAT THE APPEAL ITA NO. 5309/MUM/2016 M/S. SHRI KULSWAMI CO-OP CREDIT SOCIETY LTD. 2 FILED BY THE REVENUE AGAINST THE ORDER OF THE TRIBU NAL FOR ASSESSMENT YEARS 2007-08 AND 2008-09 HAS BEEN DISMISSED BY THE HON'B LE HIGH COURT HOLDING THAT NO SUBSTANTIAL QUESTION OF LAW WOULD A RISE IN TRIBUNAL HOLDING THAT THE ASSESSEE IS A COOPERATIVE SOCIETY AND IS N OT A BANK FOR THE PURPOSE OF SECTION 80P(4) OF THE ACT. 4. THE LEARNED D.R., ON THE OTHER HAND, VEHEMENTLY SUP PORTED THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE DECISION RELIED UPON BY T HE LEARNED COUNSEL FOR THE ASSESSEE. IN THIS CASE THE AO WHILE COMPLETING THE ASSESSMENT FOR A.Y. 2012-13 HELD THAT THE ASSESSEE IS A COOPERATIVE BAN K OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY OR PRIMARY COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK. IT WAS ALSO HELD THAT THE ASSESSE E FULFILS CONDITIONS LAID DOWN UNDER SECTION 56(C)(CCV) OF PART V OF THE BANK ING REGULATION ACT, 1949 FOR BEING A CO-OPERATIVE BANK. THUS, THE AO HE LD THAT UNDER SUB- SECTION (4) OF SECTION 80P OF THE ACT THE DEDUCTION UNDER SECTION 80P(2)(A)(I) WOULD NOT BE ALLOWABLE TO THE ASSESSEE. 6. ON APPEAL THE LEARNED CIT(A), FOLLOWING THE DECISIO N OF THE COORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSM ENT YEARS 2007-08 AND 2008-09 ALLOWED THE CLAIM FOR DEDUCTION UNDER S ECTION 80P OF THE ASSESSEE. THE TRIBUNAL FOR ASSESSMENT YEARS 2007-08 AND 2008-09 HELD THAT THE ASSESSEE IS A COOPERATIVE SOCIETY AND NOT A COOPERATIVE BANK AND IS ENTITLED FOR DEDUCTION UNDER SECTION 80P OF THE ACT. WE ALSO FIND THAT THIS VIEW OF THE TRIBUNAL HAS BEEN AFFIRMED BY THE HON'BLE BOMBAY HIGH COURT BY REJECTING REVENUES APPEAL IN IT APPE AL NOS. 1682 & 1873 OF 2014 DATED 20.03.2017 BY HOLDING THAT NO SUBSTAN TIAL QUESTION OF LAW WOULD ARISE. THUS, RESPECTFULLY FOLLOWING THE SAID DECISION OF THE HON'BLE HIGH COURT AND THE COORDINATE BENCH WE UPHOLD THE O RDER OF THE CIT(A) IN HOLDING THAT THE ASSESSEE IS A COOPERATIVE SOCIE TY AND NOT A COOPERATIVE BANK AND IS ENTITLED FOR DEDUCTION UNDE R SECTION 80P OF THE ACT. ITA NO. 5309/MUM/2016 M/S. SHRI KULSWAMI CO-OP CREDIT SOCIETY LTD. 3 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST FEBRUARY, 2018. SD/ - SD/ - (A.L. SAINI) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 21 ST FEBRUARY, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -26, MUMBAI 4. THE CIT - 28, MUMBAI 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.