KOTA SAHAKARI BHOOMI VIKAS BANK LTD., Kota V. ACIT, Kota

ITA 650/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4862 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 13-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: POONAM RAI DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 650/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 KOTA SAHAKARI BHOOMI VIKAS BANK LTD., PLOT NO. 3, BEHIND INCOME TAX OFFICE, RAWATBHATA ROAD, KOTA-324009. CUKE VS. A.C.I.T., CIRCLE-1, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAAK 0720 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : NONE. JKTLO DH VKSJ LS@ REVENUE BY : SMT. POONAM RAI. LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19/12/2016 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 20/12/2016 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 15/02/2016 PASSED BY THE LD CIT(A), AJMER FOR THE A .Y. 2007-08. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSEE IS ENGAGED IN BANKING BUSINESS AND PROVIDES LOANS AND ADVANCE FOR AGRICULTURAL DEVELOPMENT SUCH AS PURCHASE OF ENGINE, TRACTOR, CR OP LOAN AND OTHER RELATED ACTIVITIES AS PER BANK NORMS. THE ASSESSEE D EBITED AN AMOUNT OF RS. 26896000/- AS PROVISION FOR INTEREST ON NPA (AS HODYA BYAJ PRAVDAN). ITA 650/JP/2016_ KOTA SAHAKARI BHOOMI VIKAS BANK LTD. VS. ACIT 2 THE ASSESSING OFFICER ASKED THE ASSESSEE AS TO HOW TH E INTEREST ON NPA IS ALLOWABLE. THE ASSESSEE DID NOT FURNISH ANY SATISFACT ORY EXPLANATION AND THE ASSESSING OFFICER ADDED THE SAME AND AFTER ADJU STING THE LOST INCOME, IT WAS ASSESSED AT RS. 6,18,649/-. 3. BEING AGGRIEVED BY THE ORDER OF THE ASSESSING OF FICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A), WHO HAD CON FIRMED THE ADDITION MADE BY THE ASSESSING OFFICER BY HOLDING AS UNDER:- THE ASSESSEE HAS CLAIMED THAT APPELLANT IS A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BAN K, THEREFORE, THE APPELLANT WAS ENTITLED FOR DEDUCTION U/S 80P(2)(A)(I). IN SUPPORT OF ITS CLAIM, THE APPELLAN T HAS FILED COPIES OF BY-LAWS. THE CLAUSE-1( [K ) OF THE BY-LAWS PROVIDES AS UNDER: [K CSAD DK DK;Z{KS= BU MIFU;EKSA DS VURXZR JKTLO FJDKMZ DS VUQLKJ DKSVK FTYS DS YKMIQJK] BVKOK] LQYRKUIQJ] LKXKSN] PSPV RGL HY DS LELR XZKEKSA ,OA <+KF.K;KSAS RD LHFER GKSXKA FROM THE ABOVE BY-LAWS, IT IS CLEAR THAT THE AREA OF OPERATION OF THE APPELLANT CO-OPERATIVE SOCIETY (PRIMARY CO-O PERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK) WAS CONFINE D TO FIVE TALUKS. AS PER CLAUSE (B) OF EXPLANATION TO SUB-SECTION 4 OF SECTION 80P PRIMARY CO-OPERATIVE AGRICULTURAL A ND RURAL DEVELOPMENT BANK MEANS A SOCIETY HAVING ITS AREA O F OPERATION CONFINED TO A TALUK AND THE PRINCIPAL OBJECT OF WHICH IS TO PROVIDE FOR LONG-TERM CREDIT FOR AGRICUL TURAL AND RURAL DEVELOPMENT ACTIVITIES. AS THE APPELLANT SOC IETY IS NOT ITA 650/JP/2016_ KOTA SAHAKARI BHOOMI VIKAS BANK LTD. VS. ACIT 3 HAVING ITS AREA OF OPERATION CONFINED TO A TALUK (B ECAUSE ADMITTEDLY, THE AREA OF OPERATION OF THE APPELLANT SOCIETY IS FIVE TALUKS), THEREFORE, IN VIEW OF THE CLAUSE (B) O F EXPLANATION TO SUB-SECTION 4 OF SECTION 80P, I AM O F CONSIDERED VIEW THAT THE PROVISIONS OF SECTION 80P A RE NOT APPLICABLE TO THE APPELLANT SOCIETY BECAUSE IN VIEW OF THE MEANING OF PRIMARY CO-OPERATIVE AGRICULTURAL AND RU RAL DEVELOPMENT BANK GIVEN IN CLAUSE (B) OF EXPLANATION TO SUB- SECTION 4 OF SECTION 80P, THE APPELLANT COMPANY IS NOT A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOP MENT BANK. HENCE, IT IS HELD THAT NO DEDUCTION U/S 80P I S ADMISSIBLE TO THE APPELLANT. FURTHER THE APPELLANT HAS ALSO ARGUED THAT, IF NO D EDUCTION IS ALLOWED TO IT U/S 80P, THEN ITS CLAIM FOR DEDUCTION FOR PROVISION FOR INTEREST ON NPA OF RS. 2,68,96,000/- SHOULD BE ALLOWED UNDER CLAUSE (VIIA) OF SUB-SECTION 1 OF SECT ION 36. THIS ARGUMENT OF THE APPELLANT IS ALSO NOT ACCEPTABL E BECAUSE THE ASSESSEE ADMITTEDLY IS A PRIMARY CO-OPE RATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK. ONLY FOR T HE PURPOSE OF ALLOWING DEDUCTION U/S 80P, IT HAS BEEN H ELD TO BE NOT A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURA L DEVELOPMENT BANK BECAUSE IT HAS VIOLATED THE CONDIT ION OF HAVING ITS AREA OF OPERATION CONFINED TO A TALUK (A S PROVIDED IN CLAUSE (B) OF EXPLANATION TO SUB-SECTION 4 OF SE CTION 80P). THE EXPLANATION TO SUB-SECTION 4 OF SECTION 80 P STARTS WITH FOR THE PURPOSE OF THIS SUB-SECTION. THEREFORE IT IS HELD THAT THOUGH THE APPELLANT IS PRIMARY CO-OPERAT IVE ITA 650/JP/2016_ KOTA SAHAKARI BHOOMI VIKAS BANK LTD. VS. ACIT 4 AGRICULTURAL AND RURAL DEVELOPMENT BANK BUT ONLY FO R THE PURPOSE OF SUB-SECTION 4 OF SECTION 80P, IT IS HELD NOT TO BE A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVEL OPMENT BANK. ACCORDINGLY, IT IS HELD THAT NO DEDUCTION U/S 80P OF 36(1)(VIIA) IS ADMISSIBLE TO THE APPELLANT. THIS GRO UND OF APPEAL IS DISMISSED. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE ME. AT THE T IME OF HEARING, NONE WAS ATTENDED ON BEHALF OF THE ASSESSEE. HOWEVER, THE LD. DR WAS HEARD. 5. I HAVE HEARD THE LD. DR AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. FROM PERUSAL OF THE FORM NO. 36, IT TRANSPI RES THAT, INSTEAD OF GROUNDS OF APPEAL, ONLY ADDITION SHOULD BE DELETED IS MENTIONED. THUS, THE GROUND ITSELF IS VERY VAGUE AND WHICH IS NOT AS PER ITAT RULES. CONSIDERING ALL THE ASPECTS INCLUDING THE VAGUE GRO UNDS OF APPEAL TAKEN BY THE ASSESSEE, I FIND NO MERIT IN THE APPEAL OF ASSE SSEE AND THE SAME STANDS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/12/2016. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 TH DECEMBER, 2016 ITA 650/JP/2016_ KOTA SAHAKARI BHOOMI VIKAS BANK LTD. VS. ACIT 5 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- KOTA SAHAKARI BHOOMI VIKAS BANK LTD., KOTA. 2. IZR;FKHZ @ THE RESPONDENT- THE ACIT, CIRCLE-1, KOTA. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 650/JP/2016) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR