Appeal details
Counselvise Citation
[2015] 140 COUNSELVISE.COM (IT) 99052 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 11 month(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-10-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Next Hearing Date
15-10-2015
Assessment Year
2010-2011
Appeal Filed On
14-11-2013
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO. 675 /IND/201 3 A.Y : 2010 - 11 M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, ACIT, 3(1), VIDISHA VIDISHA VS APPELLANT RESPONDENT PAN NO.AAACV5199E DEPARTMENT BY : SHRI SUMIT KUMAR KHABYA, C. A. ASSESSEE BY : SHRI R. A. VERMA, DR DATE OF HEARING : 15 . 10.2015. DATE OF PRONOUNCEMENT : 15.10.2015 M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 2 2 O R D E R PER D. T. GARASIA, J.M. TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER OF CIT(A)-II, BHOPAL, DATED 13.09.2013, WHEREIN DISALL OWANCE OF THE ASSESSEES CLAIM U/S 80P WAS CONFIRMED BY THE LD. C IT(A). 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE H AS DECLARED RECEIPTS FORM INTEREST AND OTHER INCOME AT RS. 28,83,76,695/- ON WHICH NET PROFIT OF RS. 3,15,96,7 04 HAS BEEN EARNED AS PER ITS PROFIT AND LOSS ACCOUNT. THE ASSE SSEE HAS FILED NIL RETURN INCOME AFTER CLAIMING DEDUCTION U/S 80P AT RS. 3,15,14,908/-. AO HAS DISALLOWED THE CLAIM DEDUCTIO N BY MAINTAINING THAT INCOME OF BUSINESS OF BANKING HAS BEEN BROUGHT TO TAX FOR ALL COOPERATIVE SOCIETIES EXCEPT PACS (PRIMARY AGRICULTURAL CREDIT SOCIETY ) & PCARDB (PRIMARY COO PERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK). BY RELYING ON VARIOUS PROVISIONS OF BANKING REGULATION ACT, 1949, R.R.B. ACT, 1976 & SECTION 80P(4) OF THE INCOME-TAX ACT, 1961, THE AO HAS HELD THAT THE ASSESSEE IS NEITHER PACS NOR PCARDB BUT O NLY A M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 3 3 PRIMARY COOPERATIVE BANK AND NOT ENTITLED FOR DEDUC TION U/S 80P. 3. THE ASSESSEE HAS GONE BEFORE THE HON'BLE JURISDICTI ONAL HIGH COURT AND HIGH COURT HAS ADMITTED THE APPEAL O F THE ASSESSEE BY FOLLOWING ORDER :- I.T.A.NO. 212/2012 08.03.2013 SHRI SUMIT NEMA, ADVOCATE FOR THE APPELLANT SHRI SANJAY LAL, ADVOCATE APPEARS FOR THE RESPONDENTS. THIS APPEAL IS ADMITTED ON THE FOLLOWING SUBSTANTIAL QUESTIONS OF LAW :- A. WHETHER BY VIRTUE OF SECTION 32 OF THE REGIONAL RURAL BANK ACT, 1976, SECTION 22 OF RRB ACT HAS OVERRIDING EFFECT ON ANY PROVISION OF INCOME-TAX ACT, RULE, CIRCULAR ETC. AND A REGIONAL RURAL BANK SHALL BE DEEMED TO BE A COOPERATIVE SOCIETY AND SINCE IT IS CARRYING ON BUSINESS OF BANKING, BENEFIT OF SECTION 80P REMAINED IN FORCE ? B. WHETHER THE PROVISIONS OF PART V OF BANKING REGULATION ACT ARE NOT APPLICABLE TO M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 4 4 THE APPELLANT BANK SINCE THE APPELLANT BANK IS NOT COVERED UNDER THE DEFINITION OF COOPERATIVE BANKS AS DEFINED IN PART V OF BANKING REGULATION ACT IN AS MUCH AS THE PROVISIONS OF SECTION 80P)(4) EXCLUDING THE BENEFIT OF SECTION 80P TO ONLY TO CERTAIN COOPERATIVE BANK AND IS NOT APPLICABLE TO THE APPELLANTS CASE AND THE APPELLANT BANK IS ENTITLED TO CLAIM BENEFIT OF SECTION 80P SINCE THE EXCLUSION IN THE EXPLANATION IS SPECIFIC AND APPLIES ONLY TO A CO-OPERATIVE BANK AND IS THEREFORE TO BE CONSTRUED STRICTLY ? NOTICE ON BEHALF OF THE RESPONDENTS IS ACCEPTED BY SHRI LAL. APPELLANT TO SERVE A COPY OF MEMO OF APPEAL ALONGWITH SUBSTANTIAL QUESTIONS OF LAW TO SHRI LAL WITHIN A PERIOD OF ONE WEEK, AGAINST ACKNOWLEDGEMENT. BE LISTED FOR HEARING IN DUE COURSE. SD/- SD/- (KRISHN KUMAR LAHOTI) ( M.A. SIDDIQUI ) JUDGE JUDGE M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 5 5 THE ASSESSEE HAS APPROACHED TO THE HON'BLE HIGH CO URT AND HON'BLE HIGH COURT HAS ADMITTED THE APPEAL OF THE A SSESSEE. THEREFORE, THE ASSESSEE HAS APPLIED U/S 158A OF THE INCOME-TAX ACT, 1961, TO AVOID REPETITIVE APPEALS IN HIGH COUR T ON SIMILAR QUESTIONS OF LAW AND HE HAS SUBMITTED FORM NO.8 RUL E 10, WHICH IS THE DECLARATION AND HAS TO BE GIVEN AS PER THE PRESCRIBED FORM BY INCOME-TAX ACT, 1961. THE LD. DR HAS NO OBJECTION IF THE MATTER IS RESTORED TO THE AO. 4. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD . DR COULD NOT BRING ANY EVIDENCE BEFORE US TO SHOW THAT THE FACTS OF THIS CASE ARE DIFFERENT FROM THE ASSESSMENT YEAR 20 10-11. 5. WE HAVE HEARD THE RIVAL CONTENTION S OF BOTH THE PARTIES. THE LD. AUTHORIZED REPRESENTATIVE HAS FILED A DECLA RATION IN FORM NO.8 UNDER THE PROVISIONS OF SECTION 158A(1) O F THE INCOME-TAX ACT, 1961, TO AVOID THE REPETITIVE APPEA L ON THE GROUND THAT THE SUBSTANTIAL QUESTION OF LAW IS ALRE ADY ADMITTED BY THE HON'BLE HIGH COURT. THEREFORE, THIS APPEAL M AY BE ALLOWED AND FORM NO.8 MAY BE ACCEPTED AND THE MATTE R MAY BE RESTORED TO THE AO. M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 6 6 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS RESTOR ED TO THE FILE OF AO AND THE AO IS DIRECTED TO TAKE THE D ECISION AS PER OUT COME OF THE APPEAL OF THE CASE IN RESPECT OF TH E ASSESSMENT YEAR 2010-11, WHICH IS PENDING BEFORE THE HON'BLE M .P.HIGH COURT IN I.T. NO.675/IND/2013. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 15 TH OCTOBER, 2015. SD/- (B. C. MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 15 TH OCTOBER, 2015. CPU* 9.19.11 M/S. VIDISHA BHOPAL KSHETRIYA GRAMIN BANK, VIDISHA VS. ACIT, 3(1), BHOPAL I.T.A.NO. 675/IND/2013 A.Y. 2010-11 7 7
