VJTI EMPLOYEES CO OP CREDIT SOCIETY LTD, MUMBAI V. ITO 15(1)(3), MUMBAI

ITA 5542/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 3080 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-07-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 02-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI KIRAN
• Assessee Lawyers: SHETH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO. 5542/MUM/2014 (ASSESSMENT YEAR : 2010-11) VJTI EMPLOYEES COOP CREDIT SOCIETY LTD. OPP. MECHANICAL ENGG. DEPARTMENT, H.R.MAHAJANI ROAD, MATUNGA, MUMBAI 400 019 PAN: AAAAV2987Q ... APPELLANT VS. THE ITO 15(1)(3) MUMBAI. .... RESPONDENT APPELLANT BY : SHRI M.S.SHETH RESPONDENT BY : SHRI RAVI KIRAN DATE OF HEARING : 12/10/2015 DATE OF PRONOUNCEMENT : 23/10/2015 ORDER PER G.S. PANNU,AM: THE CAPTIONED APPEAL IS PREFERRED BY THE ASSES SEE AND IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 16/06/ 2014 OF CIT(A)-26, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2010-11, WHICH IN TURN HAS ARISEN FROM AN ORDER PASSED BY THE ASSESSING OFFICE R DATED 11/02/2013 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961( I N SHORT THE ACT). 2. IN THIS APPEAL THE ONLY DISPUTE IS WITH REGARD TO ASSESSEES CLAIM FOR EXEMPTION UNDER SECTION 80P(2)(D) OF THE ACT FO R RS.1,73,295/- CONSISTING OF INTEREST ON FIXED DEPOSITS RS.1,41,3 54/- AND DIVIDEND 2 ITA NO. 5542/MUM/2014 (ASSESSMENT YEAR : 2010-11) RS.31,941/- RECEIVED FROM MUMBAI DISTRICT CENTRAL C O-OPERATIVE BANK LTD. 3. THE APPELLANT IS A CO-OPERATIVE CREDIT SOCIETY R EGISTERED UNDER THE MAHARASHTRA CO-OPERATIVE SOCIETY ACT, 1960 AND ITS MAIN OBJECTS ARE TO PROVIDE CREDIT FACILITY/LOANS TO ITS MEMBERS AND COLLECT DEPOSITS FROM ITS MEMBERS BY WAY OF FIXED DEPOSITS, SAVING D EPOSITS, DAILY RECURRING DEPOSITS, ETC. THE RETURN OF INCOME FILE D BY THE ASSESSEE AT NIL INCOME WAS SUBJECT TO SCRUTINY ASSESSMENT WHEREBY T HE TOTAL INCOME WAS ASSESSED AT RS.14,10,691/- AND THE EXEMPTION CL AIMED BY THE ASSESSEE UNDER SECTION 80P(2)(A)(I) OF THE ACT WAS DENIED. IN APPEAL, THE CIT(A) HAS PARTIALLY ACCEPTED THE PLEA OF THE A SSESSEE. BE THAT AS IT MAY, THE ONLY ISSUE BEFORE ME IS REGARDING EXEMPTI ON CLAIMED IN TERMS OF SECTION 80P(2)(D) OF THE ACT ON ACCOUNT OF INTER EST AND DIVIDEND DERIVED OF FROM ITS INVESTMENT WITH OTHER CO-OPERAT IVE SOCIETY. 4. THE CIT(A) HAS DENIED THE CLAIM ON THE GROUND THAT THE INCOME HAS BEEN DERIVED FROM MUMBAI DISTRICT CENTRAL CO-OP ERATIVE BANK LTD., WHICH CANNOT BE UNDERSTOOD AS A CO-OPERATIVE SOCI ETY BUT IS CO- OPERATIVE BANK. SIMILAR STAND HAS BEEN REITERATED BY THE LD. DEPARTMENTAL REPRESENTATIVE BEFORE ME ALSO. 5. THE CLAIM OF THE APPELLANT IS THAT THE IMPUGNED INCOME IS FULLY COVERED WITHIN THE SCOPE OF CLAUSE (D) OF SECTION 8 0P(2) OF THE ACT AS THE MUMBAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD. IS BASICALLY A CO- OPERATIVE SOCIETY REGISTERED UNDER THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT,1960. 3 ITA NO. 5542/MUM/2014 (ASSESSMENT YEAR : 2010-11) 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND FIND THAT THE EXEMPTION UNDER SECTION 80P(2)(D) OF THE ACT HAS BE EN ERRONEOUSLY DENIED BY THE LOWER AUTHORITIES WITH REGARD TO AN A MOUNT OF RS.1,73,295/- RECEIVED BY THE ASSESSEE FROM MUMBAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD. ON ACCOUNT OF INTEREST ON FIXED DEPOSITS AND DIVIDENDS. CLAUSE (D) OF SECTION 80P(2) READS AS U NDER:- (D) IN RESPECT OF ANY INCOME BY WAY OF INTEREST OR DIVIDENDS DERIVED BY THE CO- OPERATIVE SOCIETY FROM ITS INVESTMENTS WITH ANY OT HER CO-OPERATIVE SOCIETY, THE WHOLE OF SUCH INCOME; 6.1 QUITE CLEARLY, THE PAYER OF SUCH INCOME I.E. MU MBAI DISTRICT CENTRAL CO-OPERATIVE BANK LTD. IS A CO-OPERATIVE SOCIETY WHICH IS, INTER-ALIA, ENGAGED IN THE BUSINESS OF BANKING. ME RELY BECAUSE ASSESSEE IS ENGAGED IN THE BUSINESS OF BANKING, IT DOES NOT DISTRACT FROM THE FACT THAT IT CONTINUES TO BE INTER-ALIA, UNDERSTOOD AS A CO-OPERATIVE SOCIETY FOR THE PURPOSES OF SECTION 80P(2)(D) OF THE ACT. THEREFORE, IN MY CONSIDERED OPINION, THE ASSESSEE IS ELIGIBLE FOR EXEMPTION UNDER SECTION 80P(2)(D) OF THE ACT WITH RESPECT TO THE IN COME OF RS.1,70,292/-. AS A CONSEQUENCE, I SET-ASIDE THE ORDER OF CIT(A) A ND DIRECT THE ASSESSING OFFICER TO ALLOW EXEMPTION UNDER SECTION 80P(2)(D) OF THE ACT ON THE ABOVE STATED AMOUNT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/10/2015. SD/- (G.S. PANNU) ACCOUN TANT MEMBER MUMBAI, DATED 23/10/2015 4 ITA NO. 5542/MUM/2014 (ASSESSMENT YEAR : 2010-11) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS