ITO 22(2)(3), NAVI MUMBAI V. MUMBAI TELEWORKERS CO OP CREDIT SOCIETY LTD, MUMBAI

ITA 6527/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2037 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 28-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR SINGH

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B , MUMBAI , . . , , BEFORE SHRI JOGINDER SINGH, J UDICIAL M EMBER , A ND SH RI N.K. PRADHAN , A CCOUNTANT M EMBER ITA NO . 6527 /MUM/20 14 ASSESSMENT YEAR: 2011 - 12 INCOME TAX OFFICER - 27(2)(3) R. NO.408, 4 TH FLOOR, TOWER NO.6, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI - 400703 / VS. MUMBAI TELEWORKERS CO - OP. CREDIT SOCIETY LT D. C/O - TELECOM FACTORY, DEONAR, MUMBAI - 400088 ( / REVENUE) ( /ASSESSEE) P.A. NO. AAAAM3176C / REVENUE BY SHRI PRADEEP KUMAR SINGH - DR / ASSESSEE BY NONE / DATE OF HEARING : 02/11 /201 6 / DATE OF ORDER : 02 /1 1 /2016 MUMBAI TELEWORKERS COOPERATIVE CREDIT SOCIETY LTD. ITA NO S . 6527/MUM/2014 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 05/08/2014 OF THE LD. FIRST APPELLATE AUTHORITY, MUMBAI . THE ONLY ISSUE RAISED BY T HE REVENUE PERTAINS TO ALLOWING RELIEF U/S 80P OF THE ACT WITH RESPECT TO INCOME OF COOPERATIVE SOCIETY PROVIDING CREDIT FACILITIES TO ITS MEMBERS. 2. DURING HEARING OF THIS A PPEAL, NONE WAS PRESENT FOR THE ASSESSEE IN SPITE OF ISSUANCE OF REGISTERED AD N OTICE. THEREFORE, WE HAVE NO OPTION BUT TO PROCEED EX - PARTE, QUA THE ASSESSEE, AND PROCEED TO DISPOSE OFF THIS APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE LD. DR, SHRI PRADEEP KUMAR SINGH, DEFENDED THE ADDITION MADE BY THE ASSESSING OFFICER. 2.1. WE HAVE CONSIDERED THE SUBMISSIONS OF LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A COOPERATIVE SOCIETY REGISTERED UNDER THE MAHARASHTRA COOPERATIVE SOCIETY ACT ENGAGED IN THE BUSINESS OF ACCEPTI NG DEPOSITS FROM ITS MEMBERS AND PROVIDING LOANS/ADVANCES/CREDIT FACILITIES TO ITS MEMBERS. THE LD. ASSESSING OFFICER DENIED THE CLAIMED DEDUCTION TREATING THE ASSESSEE AS A COOPERATIVE BANK. MUMBAI TELEWORKERS COOPERATIVE CREDIT SOCIETY LTD. ITA NO S . 6527/MUM/2014 3 2.2. ON APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APP EAL), THE FACTUAL MATRIX WAS CONSIDERED AND DECIDED IN FAVOUR OF THE ASSESSEE. THE REVENUE IS AGGRIEVED AND IS IN APPEAL BEFORE THIS TRIBUNAL. 2.3. IT I S NOTED THAT THE MAIN OBJECTIVE OF THE ASSESSEE SOCIETY IS TO PROVIDE FINANCIAL ASSISTANCE ONLY TO I TS MEMBERS . ADMITTEDLY, THE ASSESSEE SOCIETY IS NOT A BANK AS PER BANKING REGULATION ACT, 1949 SO THAT IT MAY ATTRACT SUB - SECTION (4) OF SECTION 80P OF THE ACT. THE ISSUE WAS DELIBERATED UPON IN INCOME TAX OFFICER VS JANKALYAN NAGRI SAHAKARI SA NSTHAN LTD. BY THE PUNE BENCH OF THE TRIBUNAL. IT IS ALSO NOTED THAT IDENTICAL DEDUCTION WAS DISALLOWED BY THE ASSESSING OFFICER FOR ASSESSMENT YEAR 2009 - 10 AND RELIEF WAS GRANTED TO THE ASSESSEE BY THE LD. COMMISSIONER OF INCOME TAX (APPEAL). NO CONTRARY DECISION WA S BROUGHT TO OUR NOTICE. THE RATIO LAID DOWN IN CIT VS JAFARI MOMIN VIKAS COOPERATIVE CREDIT SOCIETY LTD. (TAX APPEAL NO.442, 443 AND 863 OF 2013) ORDER DATED 15/01/2014, SUPPORTS THE CASE OF THE ASSESSEE. WHILE COMING TO THIS CONCLUSION, THE HON'BLE HIGH COURT DULY CONSIDERED CBDT CIRCULAR NO.133 OF 2007 DATED 09/05/2007 CLARIFYING THAT SUB - SECTION 4 OF SECTION 80P OF THE ACT WILL NOT APPLY TO AN ASSESSEE WHICH IS NOT A COOPERATIVE BANK. MUMBAI TELEWORKERS COOPERATIVE CREDIT SOCIETY LTD. ITA NO S . 6527/MUM/2014 4 CONSIDERING THE TOTALITY OF FACTS, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL). IT IS AFFIRMED. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. T HIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. DR AT T H E CONCLUSION OF THE HEARING ON 27 /10 /2016 . S D/ - SD/ - ( N. K. PRADHAN ) (JOGINDER SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 02 / 11 /201 6 SHEKHAR, P.S/. . . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A) - , MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY OR DER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBA I,