M/s Punjab State Coop Milk Producers Federation Ltd., Chandigarh V. ITO, Chandigarh

ITA 572/CHANDI/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2505 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-12-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 17-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO.572/CHD/2013 (ASSESSMENT YEAR : 2002-03) & ITA NO.573/CHD/2013 (ASSESSMENT YEAR : 2008-09) M/S PUNJAB STATE COOP MILK VS. THE INCOME TAX OFFICER, PRODUCERS FEDERATION LTD., WARD 4(3), SCO NO. 153-155, CHANDIGARH. SECTOR 34-A, CHANDIGARH. PAN: AAAAP1208Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.R. SHARMA RESPONDENT BY : SHRI MANJIT SINGH, DR DATE OF HEARING : 17.12.2015 DATE OF PRONOUNCEMENT : 04.01.2016 O R D E R PER RANO JAIN, A.M . : BOTH THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH DATED 1.2.2013 FOR ASSESSMENT YEARS 2002-03 AND 2008-09. 2 ITA NO.572/CHD/2013 : 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ORIGINAL ASSESSMENT UNDER SECTION 143(3) OF THE INC OME TAX ACT, 1961 (IN SHORT THE ACT) WAS COMPLETED IN THIS CASE AT AN INCOME OF RS.4,98,64,200/- AS ON 30.5.20 05, AFTER DENYING THE ENTIRE CLAIM OF THE ASSESSEE FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. THE LEARNED CIT (APPEALS), VIDE HIS ORDER DATED 31.10.2005 DISM ISSED THE APPEAL OF THE ASSESSEE AGAINST THE SAID ORDER. ON AN APPEAL FILED BY THE ASSESSEE BEFORE THE I.T.A.T., CHANDIGARH BENCH, THE SAME WAS PARTLY ALLOWED IN IT A NO.1068/CHANDI/2005, DATED 27.4.2006. IN THIS ORDE R THE I.T.A.T., CHANDIGARH BENCH GAVE SPECIFIC DIRECTION TO CALCULATE THE INCOME ELIGIBLE FOR DEDUCTION UNDER S ECTION 80P(2)(D) OF THE ACT AS PER THE OBSERVATIONS OF THE I.T.A.T. THE DIRECTION OF THE I.T.A.T. ARE AS UNDER : 'CONSIDERING THE ENTIRE CIRCUMSTANCES, IN OUR CONSI DERED OPINION IT WOULD BE APPROPRIATE TO ALLOCATE THE INTEREST EXPE NSES OF RS. 4,39,14,542/- ON THE BASIS OF THE PROPORTION OF THE ELIGIBLE INTEREST INCOME IN QUESTION VIZ-A-VIZ TOTAL RECEIPTS OF THE BUSINESS A% SHOWN IN THE PROFIT & LOSS ACCOUNT. WE THEREFORE SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE AS SESSING OFFICER TO RE WORK THE INTEREST EXPENSES ATTRIBUTABLE TO THE EARNING OF INTEREST INCOME FROM THE MEMBERS COOP SOCIETIES, AS ABOVE. SECONDLY WITH REGARD TO THE ALLOCATION OF HEAD OFFIC E EXPENSES ALSO, WE FIND IT APPROPRIATE TO APPLY THE SAME BASIS. ACCORDINGLY THE ORDER OF THE CIT(A) IS SET ASIDE AN D THE ASSESSING OFFICER IS DIRECTED TO RE-COMPUTE THE AMO UNT OF DEDUCTION ELIGIBLE TO THE ASSESSEE U/S 80P(2)9D) OF THE ACT. 3 3. AS A RESULT APPEAL EFFECT WAS GIVEN BY THE ASSESSING OFFICER AND NET TAXABLE INCOME OF RS.2,48,22,466/- WAS WORKED OUT BY THE ASSESSING OF FICER AFTER ALLOWING DEDUCTION UNDER SECTION 80P(2)(D)) O F THE ACT AMOUNTING TO RS.2,50,41,730/-. THIS IS PERTINE NT TO MENTION HERE THAT THE APPEAL FILED BY THE ASSESSEE AGAINST THE SAID ORDER OF THE I.T.A.T., CHANDIGARH BENCH BE FORE THE HIGH COURT, LATER ON, GOT DISMISSED, WHICH IS R EPORTED AS PUNJAB STATE CO-OPERATIVE MILK PRODUCER FEDERATI ON LIMITED VS. CIT & ANOTHER (NO.1)(P&H) 336 ITR 495. THE PRESENT APPEAL IS AGAINST THE ORDER OF THE CIT (APP EALS) CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN G IVING APPEAL EFFECT AS PER THE DIRECTION OF THE I.T.A.T. 4. THE LEARNED COUNSEL FOR THE ASSESSEE, THOUGH FAIRLY CONCEDED BEFORE US, ALSO MENTIONED THAT LATE R ON A JUDGMENT OF THE DELHI HIGH COURT IN THE CASE OF CI T VS. KRIBHCO (2012) 349 ITR 618 (DELHI) HAS ARRIVED, WHI CH IS IN FAVOUR OF THE ASSESSEE. 5. THE LEARNED D.R. RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES, PERUSED THE FINDINGS OF THE AUTHO RITIES BELOW AND CONSIDERED THE MATERIAL AVAILABLE ON RECO RD. IT IS SEEN THAT THE ISSUE OF ALLOWANCE OF DEDUCTION UN DER SECTION 80P OF THE ACT TO THE ASSESSEE IS NO LONGER RES- INTEGRA, AS THE SAME HAS BEEN DECIDED BY THE HON'BL E 4 HIGH COURT, AGAINST THE ASSESSEE. FURTHER, THE AP PEAL IS ONLY AGAINST THE ORDER OF THE CIT (APPEALS), IN AN APPEAL FILED BY THE ASSESSEE, AGAINST THE ORDER OF THE ASS ESSING OFFICER GIVING EFFECT TO THE DIRECTIONS OF THE I.T. A.T. IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN THE O RDER OF THE LEARNED CIT (APPEALS). 7. THE APPEAL OF THE ASSESSEE IS DISMISSED. ITA NO.573/CHD/2013 : 8. IT IS RELEVANT TO OBSERVE HERE THAT SINCE THE ISSUE IN THIS CASE IS SIMILAR TO THE ISSUE IN ITA NO.572/CHD/2013 AND THE FINDINGS GIVEN IN ITA NO.572/CHD/2013 SHALL APPLY TO THIS CASE ALSO WITH EQUAL FORCE. 9. IN THE RESULT, THE BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 4 TH DAY OF JANUARY, 2016. SD/- SD/- (BHAVNESH SAINI) (RANO JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 4 TH JANUARY, 2016 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH