The Income Tax Officer, Ward-1, Karwar., Karwar V. Shree Maruti Sahakari Pattin Sangh Niyamit, Bhatkal

ITA 58/PAN/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2034 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 09-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S SRINIVAS
• Assessee Lawyers: R K PIKALE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 58 /P A N/201 6 (ASST. YEAR : 20 12 - 1 3 ) ITO, WARD - 1, KARWAR. VS. SHREE MARUTI SAHAKARI PATTIN SANGH NIYAMIT, SHIRALI, BHATKAL (KARNATAKA) PAN NO. AAGAS 6424 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. PIKALE C A DEPARTMENT BY : SHRI S. SRINIVAS - DR DATE OF HEARING : 12 / 0 7 /201 6 . DATE OF PRONOUNCEMENT : 12 / 0 7 /201 6 . O R D E R THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) , MANGALURU IN APPEAL NO. 261/KWR/CIT(A) /MNG/14 - 15 , DATED 2 6 /0 2 /201 6 FOR THE ASSESSMENT YEAR 2012 - 13. 2. SHRI S. SRINIVAS , DEPARTMENTAL REPRESENTATIVE REPRESENTED ON BEHALF OF THE REVENUE AND SHRI R.K. PIKALE , CA REPRESENTED ON B EH A L F OF THE ASSESSEE. 3 . IT WAS SUBMITTED BY THE DEPARTMENTAL REPRESENTATIVE THAT THE ONLY ISSUE IN THE REVENUES APPEAL WAS AGAINST THE ACTION OF THE COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE DISALLOWANCE OF DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. IT WAS THE SUBMISSION THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN DELETING THE ADDITION MADE BY TREATING THE INTEREST INCOME EARNED FROM THE INVESTMENTS MADE IN OTHER BANKS FROM NON - MEMBERS . IT WAS THE 2 ITA NO. 58 /P A N/201 6 SUBMISSION THAT THE ASSESSEE WAS NOT ENTITLED TO DEDUCTION UNDER SECTION 80P(2). 4 . IN REPLY , AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THERE ARE NO DEPOSIT S FROM NON - MEMBERS. IT WAS THE SUBMISSION THAT THE INVESTMENTS, ON WHICH THER E DEDUCTIONS UNDER SECTION 80P(2) HAS BE E N CLAIMED ARE PURELY INVESTMENTS MADE IN NATIONAL BANKS, SCHEDULED BANKS AND COOPERATIVE BANKS AND THE SOURCES OF THE FUNDS W E R E FROM THE MEMBERS ONLY. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMIT T ED THAT THE ISSUE WAS SQUARELY COVERED BY THE DECI S ION OF THE HO NBLE JURISDICTIONAL HIGH COURT OF KARNATAKA IN THE CASE OF GUTTIGEDARARA CREDIT COOPERATIVE SOCIETY LTD . REPORTED IN 377 ITR 464 WHEREIN THE DECISION OF THE HONBLE SUPREME COURT IN TOTGARS COOPERATIVE SALE SOCIETY LTD. REPORTED IN 322 ITR 283 HAS ALSO BEEN CONSIDERED . 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT OF KARNATAKA IN THE CASE OF GUTTIGEDARARA CREDIT COOPERATIVE SOCIETY LTD. (SUPRA) AND IT IS ALSO NOTICED THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS FOLLOWED T H E BINDING DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT , I FIND NO ERROR IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) W HICH CALLS FOR ANY INTERFERENCE. 6 . IN THE RESULT, APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON TUESDAY , THE 1 2 TH DAY OF JU LY , 201 6 AT GOA . (GEORGE MATHAN) JUDICIAL MEMBER DATED : 12 TH JU LY , 201 6 . 3 ITA NO. 58 /P A N/201 6 VR/ - COPY TO: 1 . THE ASSESSEE. 2 . THE REVENUE. 3 . THE CIT 4 . THE CIT(A) 5 . THE D.R . 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 1 2 /0 7 /2016 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 12/07 /2016 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 12/07 /2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 12/07 /2016 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 12/07 /2016 SR.PS 6. DATE OF PRONOUNCEMENT 12/07 /2016 SR.PS 7. FILE SENT TO THE BENCH CLERK 12/07 /2016 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER