Income Tax Officer, Ward -1(3), Belgaum., Belgaum V. M/s Renuka Co-op. Credit Society Ltd., Belagavi

ITA 70/PAN/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1035 (ITAT-PANAJI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 04-06-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 16-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K M MAHESH LD
• Assessee Lawyers: ANAND V NAYAK
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER ITA N O . 70 /PNJ/20 15 : (A.Y 2011 - 12 ) INCOME TAX OFFICER, WARD - 1(3), BELGAUM ( APPELLANT) VS. M/S. RENUKA CO - OPERATIVE CREDIT SOCIETY LTD., HOTEL KEERTI CAMPUS, P.B. ROAD, BELAGAVI PAN : AABAS0671B (RESPONDENT) CO N O . 17 /PNJ/20 15 (IN ITA NO. 70/PNJ/2015) : (A.Y 2011 - 12 ) M/S. RENUKA CO - OPERATIVE CREDIT SOCIETY LTD., HOTEL KEERTI CAMPUS, P.B. ROAD, BELAGAVI PAN : AABAS0671B (CROSS OBJECTOR) VS. INCOME TAX OFFICER, WARD - 1(3), BELGAUM ( RESPONDENT) ASSESSEE BY : ANAND V. NAYAK, CA REVENUE BY : K.M. MAHESH, LD. DR DATE OF HEARING : 04 / 06 /201 5 DATE OF PRONOUNCEMENT : 04 / 06 /201 5 O R D E R 1. ITA NO. 70/PNJ/2015 IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), BELGAUM IN ITA NO. 180/BGM/13 - 14 DT. 8.12.2014 FOR THE A.Y 2011 - 12. CO NO. 17/PNJ/2015 IS CROSS OBJECTION FILED BY THE ASSESSEE IN THE REVENUES APPEAL IN ITA NO. 70/PNJ/2015 . SHRI K.M. MAHESH, LD. DR REPRESENTED ON BEHALF OF THE REVENUE AND SHRI ANAND V. NAYAK, CA REPRESENTED ON BEHALF OF THE ASSESSEE. 2 ITA NO. 70/PNJ/2015 & CO NO. 17/PNJ/2015 (A.Y : 2011 - 12) 2. IT WAS SUBMITTED BY THE LD. DR THAT THE ONLY ISSUE IN THE REVENUES APPEAL WAS AGAINST THE ACTION OF LD. CIT(A) IN GRANTING RELIEF TO THE ASSESSEE BY HOLDING THAT THE ASSESSEE WAS ENTITLED TO DEDUCTION U/S 80P(2). IT WAS THE SUBMISSIO N THAT THE AO HAD IN THE COURSE OF THE ASSESSMENT PROCEEDINGS HELD THAT THE ASSESSEE WAS DOING BUSINESS OF BANKING AND CONSEQUENTLY IN VIEW OF EXPLANATION BELOW SEC. 80P(4) THE ASSESSEE WAS NOT ENTITLED TO DEDUCTION U/S 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961. IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAD FOLLOWED THE DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA IN ITA NO. 5006/2013 DT. 5.2.2014 AND HAD GRANTED RELIEF TO THE ASSESSEE. IT WAS THE SUBMISSION THAT THE SAID DECISION OF THE HON'BLE KARNATAKA HIGH COURT WAS ON THE APPLICABILITY OF SEC. 263 AND THE SAME WAS NOT LIABLE TO BE FOLLOWED. IT WAS THE SUBMISSION THAT THE ORDER OF THE AO WAS LIABLE TO BE RESTORED. 3. IN REPLY, THE LD. AR SUBMITTED THAT THE ASSESSEE WAS NOT A BANKING INSTITUTION AND IT DID NOT POSSESS ANY BANKING LICENCE FROM THE RBI. IT WAS THE SUBMISSION THAT THE ASSESSEE WAS PROVIDING CREDIT FACILITIES ONLY TO ITS MEMBERS AND CONSEQUENTLY THE DECISION OF THE HON 'BLE KARNATAKA HIGH COURT IN THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA IN INCOME TAX APPEAL NO. 5006/2013 DT. 5.2.2014 ( SUPRA) AS ALSO THE DECISION OF THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF VASAVI MULTIPURPOSE SOUHARDA SA HAKARI NIYAMITA IN ITA NO. 505/2013 DT. 27.6.2014 APPLIED TO THE FACTS OF THE ASSESSEES CASE. HE VEHEMENTLY SUPPORTED THE ORDER OF LD. CIT(A). IT WAS FURTHER SUBMITTED THAT IN THE CROSS OBJECTION NO. 17/PNJ/2015 THE ASSESSEE HAS ONLY SUPPORTED THE ORDER OF THE LD. CIT(A) AND NO FRESH ARGUMENT OR ISSUES HAVE BEEN RAISED. 3 ITA NO. 70/PNJ/2015 & CO NO. 17/PNJ/2015 (A.Y : 2011 - 12) 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE ORDER OF THE LD. CIT(A) IN THE PRESENT CASE, MORE SPECIFICALLY AT PARA 8.1 CLEARLY SHOWS THAT THE LD. CIT(A) HAS TAKEN INT O CONSIDERATION THE DECISION OF THE JURISDICTION HIGH COURT OF KARNATAKA IN THE CASE OF SRI BILURU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMITHA IN INCOME TAX APPEAL NO. 5006/2013 DT. 5.2.2014 AS ALSO THE DECISION IN THE CASE OF VASAVI MULTIPURPOSE SOUHARDA SAHAKARI NIYAMITA IN ITA NO. 505/2013 DT. 27.6.2014 REFERRED TO SUPRA TO HOLD THAT THE ASSESSEE IS NOT HOLDING A BANKING LICENCE FROM THE RBI AND IS ENGAGED IN ONLY PROVIDING CREDIT FACILITIES TO ITS MEMBERS. AS IT IS NOTICED THAT THE ISSUE IS SQUARELY C OVERED BY THE DECISION OF THE HON'BLE JURISDICTION HIGH COURT OF KARNATAKA AND AS NO FACTS HAVE BEEN BROUGHT OUT TO DISTINGUISH THE ASSESSEES CASE FROM THAT AS DECIDED BY THE HON'BLE JURISDICTION HIGH COURT OF KARNATAKA, I AM OF THE VIEW THAT THE FINDING OF LD. CIT(A) IS ON A RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. 5. AS THE CROSS OBJECTION IS ONLY IN SUPPORT OF THE ORDER OF THE LD. CIT(A) AND AS I HAVE ALREADY CONFIRMED THE O RDER OF LD. CIT(A), THE CROSS OBJECTION FILED BY THE ASSESSEE STANDS DISMISSED. 6. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/06/2015. S D / - ( GEORGE MATHAN ) JUDICIAL MEMBER PLACE : PANAJI / GOA DATED : 0 4 /06/ 201 5 *SSL* 4 ITA NO. 70/PNJ/2015 & CO NO. 17/PNJ/2015 (A.Y : 2011 - 12) COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER , 5 ITA NO. 70/PNJ/2015 & CO NO. 17/PNJ/2015 (A.Y : 2011 - 12) DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ORDER ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 04/06/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04/06/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER N/A JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER N/A JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 04 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 04/06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 0 4 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER