Maa Jhandewali Cooperative Urban Thrift & Credit Society Ltd, New Delhi V. ITO, Ward-63(5), New Delhi

ITA 680/DEL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6808 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 31-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: EKTA VISHNOI
• Section: 143(3); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 680/DEL/2019 ASSESSMENT YEAR: 2015-16 MAA JHANDEWALI COOPERATIVE URBAN THRIFT & CREDIT SOCIETY LTD., FLAT NO. 145, 1 ST FLOOR, DDA OFFICE COMPLEX, CYCLE MARKET, JHANDEWALAN EXTN., NEW DELHI. PAN NO. AABAM1258M VS ITO WARD 63(5) NEW DELHI. APPELLANT RESPONDENT ASSESSEE BY SHRI P.K. MISHRA, CA REVENUE BY MS. EKTA VISHNOI, SR. DR ORDER THIS APPEAL FILED BY THE ASSESSEE AGAINST THE IMPU GNED ORDER PASSED BY THE LD. CIT(APPEALS)-20, NEW DELHI IN REL ATION TO ASSESSMENT YEAR 2015-16 ON THE FOLLOWING GROUNDS: 1. THAT THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) IS BAD IN LAW AS WELL AS ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE. 2. THAT THE LD. CIT(APPEALS) HAS ERRED IN SUSTAINING T HE ACTION OF THE ASSESSING OFFICER IN DENYING THE DEDU CTION U/S 80P OF THE INCOME TAX ACT, 1961 IN RESPECT OF I NTEREST EARNED ON BANK FDRS AND ON SAVING ACCOUNT HELD WITH BANK. 2 ITA NO . 680/DEL/2019 3. THAT THE LD. CIT(APPEALS) HAS ERRED IN SUSTAINING T HE ACTION OF ASSESSING OFFICER IN TREATING THE INTERES T EARNED ON BANK FDRS AND ON SAVING ACCOUNT HELD WITH BANK T O BE INCOME FROM OTHER SOURCES WHILE THE SAME IS ATTRI BUTABLE TO THE NORMAL BUSINESS ACTIVITIES OF PROVIDING CRED IT FACILITIES. 4. THAT THE LD. CIT(APPEALS) HAS ERRED IN SUSTAINING T HE ADDITION OF RS. 2,60,727/- MADE BY THE ASSESSING OF FICER ON THE BASIS OF JUDGMENT OF HONBLE DELHI HIGH COUR T IN THE CASE OF MANTOLA COOPERATIVE THRIFT & CREDIT SOCIETY LTD. WHICH IS DISTINGUISHABLE ON THE FACTS OF THE CASE O F THE APPELLANT. 5. THAT THE LD. CIT(APPEALS) HAS ERRED IN NOT CONSIDER ING THE CBDT CIRCULAR NO. 18/2015 DATED 2 ND NOVEMBER, 2015 WHICH WAS APPLICABLE TO THE FACTS OF THE CASE OF TH E APPELLANT. 6. THE ABOVE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE T O EACH OTHER. 7. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND /OR MODIFY THE ABOVE GROUNDS OF APPEAL. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY THE BOTH PARTIES, THEREFORE, NO NEED TO REPEAT T HE SAME FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE STATED THAT ISSUE IN DISPUTE HAS ALREADY BEEN DECIDED BY T HE ITAT DELHI BENCHES D BENCH, NEW DELHI IN THE CASE OF ACIT, C IRCLE 38(1), NEW DELHI VS. M/S JAWALA COOPERATIVE URBAN THRIFT & CREDIT SOCIETY LTD. IN ITA NO. 2607/DEL/2012 AY 2008-09 DA TED 19.12.2014. HE HAS ALSO FILED A COPY OF THE SAID O RDER AND REQUESTED THAT RESPECTFULLY FOLLOWING THE AFORESAID ORDER THE ADDITION IN DISPUTE MAY BE DELETED AND APPEAL FILED BY THE ASSESSEE MAY BE ALLOWED. 3 ITA NO . 680/DEL/2019 4. LD. SR. DR STRONGLY OPPOSED THE REQUEST OF THE A SSESSEE AND STATED THAT THE LD. FIRST APPELLATE AUTHORITY HAS D ECIDED THE ISSUE IN DISPUTE AGAINST THE ASSESSEE BY RESPECTFULLY FOL LOWING THE ORDER OF THE HONBLE DELHI HIGH COURT IN THE CASE OF M/S MANTOLA COOPERATIVE THRIFT & CREDIT SOCIETY LTD. SHE FURTHE R STATED THAT THE CASE LAW RELIED UPON BY THE LD. AR ORDER PASSED BY THE ITAT DELHI BENCHES D BENCH, NEW DELHI AND NOT BY THE HONBLE HIGH COURT OR SUPREME COURT. THEREFORE, THE CASE LAW RELIED U PON BY LD. COUNSEL FOR THE ASSESSEE MAY NOT BE FOLLOWED AND TH E APPEAL FILED BY THE ASSESSEE MAY BE DISMISSED. 5. I HAVE HEARD THE BOTH PARTIES AND PERUSED THE RE LEVANT RECORD AVAILABLE WITH ME ESPECIALLY THE ORDER PASSED BY TH E HONBLE DELHI HIGH COURT MENTIONED IN THE IMPUGNED ORDER AND THE ORDER FILED BY THE LD. COUNSEL FOR THE ASSESSEE I.E. OF ITAT DE LHI BENCHES D BENCH, NEW DELHI PASSED IN ITA NO. 2607/DEL/2012 AY 2008-09 IN THE CASE OF ACIT, CIRCLE 38(1), NEW DELHI VS. M/ S JAWALA COOPERATIVE URBAN THRIFT & CREDIT SOCIETY LTD. DATE D 19.12.2014 IN WHICH THE UNDERSIGNED IS THE PARTY. FOR THE SAKE OF CONVENIENCE THE FINDING OF THE ITAT DELHI BENCHES D BENCH NEW DELHI PARA 9 TO 11 ARE REPRODUCED AS UNDER: 9. WE HAVE HEARD RIVAL PARTIES AND HAVE GONE THRO UGH THE MATERIAL PLACED ON RECORD. WE FIND THAT TOTAL INCOME EARNED BY THE ASSESSEE INCLUDED INCOME ON FIXED DEP OSITS PLACED WITH BOMBAY MERCANTILE BANK, INTEREST INCOME FROM A SCHEDULED BANK AND DIVIDEND INCOME FROM DELHI COOPERATIVE BANK. FROM THE CERTIFICATE AS PLACED A T PAPER BOOK PAGE 30, WE FIND THAT BOMBAY MERCANTILE COOPERATIVE BANK IS A COOPERATIVE SOCIETY REGISTERE D UNDER 4 ITA NO . 680/DEL/2019 MAHARASHTRA COOPERATIVE SOCIETIES ACT AND WE FURTHE R FIND THAT THE SAID SOCIETY HAS BEEN ASSESSED U/S 143(3) AS A COOPERATIVE SOCIETY AND ITS INCOME WAS ALLOWED TO B E EXEMPT U/S 80P(2)(I) AS HELD BY MUMBAI TRIBUNAL IN ITA NO. 4128 AND 4129 VIDE ITS ORDER DATED 30.11.2005, FOR ASSESSMENT YEAR 1990-91 AND 1991-92 AND FURTHER BY MUMBAI TRIBUNAL VIDE ORDER DATED 07.09.2011 IN ITA NO. 5292 FOR AY 1997-98. THEREFORE, IT IS HELD THAT FI XED DEPOSITS PLACED WITH BOMBAY MERCANTILE BANK FALLS W ITHIN THE EXEMPTION GRANTED BY SECTION 80P(2)(D) OF THE A CT. THE ASSESSEE WAS ALSO ELIGIBLE UNDER THE PROVISIONS OF SECTION 80P(2)A(I) AS THE FUNDS PLACED BY ASSESSEE IN THE F ORM OF FIXED DEPOSITS CAN BE SAID TO BE KEPT FOR THE PURPO SE OF BUSINESS OF THE ASSESSEE AS THE ASSESSEE HAD AVAILE D CREDIT FACILITIES ALSO AGAINST SUCH FIXED DEPOSITS WHICH WERE AGAIN USED FOR THE PURPOSE OF BUSINESS OF ASSE SSEE. MOREOVER, UNDER SIMILAR CIRCUMSTANCES, CHANDIGARH B ENCH IN ITA NO. 996/2009 AS NOTED BY LD. CIT(A) HAS DECI DED IN FAVOUR OF ASSESSEE. THE DIVIDEND INCOME IS EXEMPT FOR ALL PERSONS INCLUDING ASSESSEE. THE INTEREST INCOME FR OM BANK AMOUNTING TO RS. 18,190/- IS THOUGH NOT EXEMPT U/S 80(P)(2)(D) BUT IS EXEMPT U/S 80P(2)(I) OF THE ACT. THE CASE LAW OF TOTGARS COOPERATIVE SOCIETY WAS RIGHTLY DISTINGUISHED BY LD. CIT(A). THEREFORE, KEEPING IN VIEW ALL FACTS AND CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMI TY IN THE ORDER OF LD. CIT(A). 10. IN VIEW OF ABOVE, APPEAL FILED BY REVENUE IS DISMISSED. 11. ORDER PRONOUNCED IN THE OPEN COURT ON 19.12.201 4. 6. AFTER GOING THROUGH THE AFORESAID ORDER PASSED B Y THE HONBLE DELHI HIGH COURT IN THE CASE OF M/S MANTOLA COOPERA TIVE THRIFT & CREDIT SOCIETY LTD. AND THE ITAT DELHI BENCHES D BENCH, NEW DELHI DATED 19.12.2014 THE RELEVANT PORTION OF THE SAME REPRODUCED ABOVE. I AM OF THE CONSIDERED VIEW THAT THE FACTS OF THE PRESENT CASE AND THE FACTS OF THE CASE LAW RELIED U PON BY LD. 5 ITA NO . 680/DEL/2019 COUNSEL FOR THE ASSESSEE ARE EXACTLY SIMILAR NOT TH E CASE LAW RELIED UPON BY THE LD. CIT(A) IN THE IMPUGNED ORDER I.E. M /S MANTOLA COOPERATIVE THRIFT & CREDIT SOCIETY LTD. THEREFORE , RESPECTFULLY FOLLOWING THE ORDER OF ITAT DELHI BENCHES D BENCH , NEW DELHI IN ITA NO. 2607/DEL/2012 IN THE CASE OF ACIT, CIRCLE 3 8(1), NEW DELHI VS. M/S JAWALA COOPERATIVE URBAN THRIFT & CRE DIT SOCIETY LTD. DATED 19.12.2014 THE ADDITION IN DISPUTE IS DE LETED AND APPEAL FILED BY THE ASSESSEE IS ALLOWED. NO OTHER ISSUES HAVE BEEN ARGUED BY THE BOTH PARTIES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 23/10/2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 6 ITA NO . 680/DEL/2019 DATE OF DICTATION 22.10.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 23.10.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 23.10.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 23.10.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 23.10.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 23.10.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23.1 0.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER