M/s. Sri Gayathri Credit Co-operative Society Limited, Hassan V. Principal Commissioner Of Income Tax, Mysore

ITA 624/BANG/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4465 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-10-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 30-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order; Opportunity of being heard
• Section: 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO. 624 /BANG/20 20 ASSESSMENT YEAR : 2015 16 M/S SRI GAYATHRI CO OPERATIVE SOCIETY LTD., SAMPIGE ROAD, K. R. PURAM, HASSAN - 573201 PAN : A A BAS2700F VS. PCIT MYSORE & ITO WARD 2, HASSAN APPELLANT RESPONDENT ASSESSEE BY : SHRI V. SRINIVASAN, ADVOCATE REVENUE BY : MS PRISCILLA SINGSIT, CIT DR DATE OF HEARING : 22 .10. 20 20 DATE OF PRONOUNCEMENT : 22 . 1 0 .20 20 O R D E R PER ARUN KUMAR GARODIA, A. M.: THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST AN ORDER OF LEARNED PCIT MYSORE DATED 13.03.2020 PASSED BY HIM U/S 263. 2. IN THIS APPEAL, ALTHOUGH AS MANY AS 9 GROUNDS ARE RAISED BY THE ASSESSEE BUT THE MAIN EFFECTIVE GRIEVANCE IS THIS THAT THE IMPUGNED ORDER PASSED BY PCIT IS BAD IN LAW. 3. IN COURSE OF HEARING, VARIOUS ARGUMENTS WERE RAISED BY THE LEARNED AR OF THE ASSESSEE BUT THIS WAS HIS MAIN ARGUMENT THAT UNDER SIMILAR FACTS, IN THE CASE OF M/S TIBETAN RABGAYLING PRIMARY AGRICULTURAL CREDIT CO OPERATIVE SOCIETY LIMITED IN ITA NO. 392/BANG/2020 DATED 08.10.2020 (COPY SUBMITTED), AS PER PARA 9 OF THAT TRIBUNAL ORDER, THE TRIBUNAL HELD THAT THE AO SHOULD EXAMINE THE FACTS IN THE LIGHT OF THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF ITA NO. 624 /BANG/2020 PAGE 2 OF 3 TUMKUR MERCHANTS SOUHARDA CREDIT CO OP. SOCIETY LTD., 236 TAXMAN 309 AND OF HONBLE SUPREME COURT RENDERED IN THE CASE OF TOTGAR CO OP. SALES SOCIETY LTD., 322 ITR 283 AND THE DIRECTIONS OF PCIT IN THAT CASE WERE QUASHED. HE SUBMITTED THAT IN THE PRESENT CASE ALSO, SIMILAR ORDER SHOULD BE PASSED. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF PCIT PASSED BY HIM U/S 263. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. LEARNED DR OF THE REVENUE COULD NOT POINT OUT ANY DIFFERENCE IN FACTS IN THE PRESENT CASE AND IN THE CASE OF M/S TIBETAN RABGAYLING PRIMARY AGRICULTURAL CREDIT CO OPERATIVE SOCIETY LIMITED (SUPRA). THEREFORE, BY RESPECTFULLY FOLLOWING THIS TRIBUNAL ORDER, WE MODIFY THE DIRECTIONS OF PCIT AND DIRECT THE AO TO EXAMINE THE FACTS OF THE PRESENT CASE IN THE LIGHT OF THE JUDGMENT OF HONBLE KARNATAKA HIGH COURT RENDERED IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT CO OP. SOCIETY LTD., 236 TAXMAN 309 AND OF HONBLE SUPREME COURT RENDERED IN THE CASE OF TOTGAR CO OP. SALES SOCIETY LTD., 322 ITR 283 AND DECIDE THE ISSUE ABOUT ALLOWABILITY OF DEDUCTION U/S 80P. NEEDLESS TO SAY, THE AO SHOULD PROVIDE ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND ADEQUATE OPPORTUNITY TO BRING RELEVANT MATERIAL ON RECORD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS INDICATED AS ABOVE. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- SD/- SD/- (N. V. VASUDEVAN) (A.K. GARODIA) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED: 22 ND OCTOBER, 2020. /NS/* AKG ITA NO. 624 /BANG/2020 PAGE 3 OF 3 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.