Income Tax Officer, Hardoi V. Zila Ganna Utpadak Sahakari Samiti Ltd., Hardoi

ITA 737/LKW/2013

• Counselvise Citation: 73723714 RSA 2013
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-09-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 12-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.737/LKW/2013 ASSESSMENT YEAR:2010 - 11 ZILA GANNA UTPADAK SAHKARI SAMITI LTD., HOSPITAL ROAD, HARDOI. PAN:AAACZ1876A VS INCOME TAX OFFICER, HARDOI. (RESPONDENT) (APPELLANT) ITA NO.738/LKW/2013 ASSESSMENT YEAR:2011 - 12 SAHKARI GANNA VIKAS SAMITI LTD., RUPAPUR CHOWRAHA, HARDOI. PAN:AAWFS0887P VS INCOME TAX OFFICER, HARDOI. (RESPONDENT) (APPELLANT) SHRI ALOK MITRA, D. R. APPELLANT BY SHRI SHUBHAM RASTOGI, C. A. RESPONDENT BY 11/09/2014 DATE OF HEARING 28 /11/2014 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. BOTH THESE APPEALS ARE FILED BY THE REVENUE IN TWO DIFFERENT CASES. I.T.A. NO.737/LKW/2013 IS IN RESPECT OF ZILA GANNA UTPADAK SAHKARI SAMITI LTD. FOR ASSESSMENT YEAR 2010 - 11, WHICH IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), BAREILLY DATED 07/08/2013 AND I.T.A. NO.738/LKW/2013 IS IN RESPECT OF SAHKARI GANNA VIKAS SAMITI LTD. WHICH IS ALSO DIRECTED AGAINST THE ORDER OF LEARNED CIT(A), BAREILLY DATED 07/08/2013 FOR ASSESSMENT YEAR 2011 - 12. BOTH 2 THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE GROUNDS RAISED BY THE REVENUE IN I.T.A. N O.737/LKW/2013 ARE AS UNDER: 1. THAT THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.37,33,330/ - PLACING RELIANCE OF THE JUDGMENTS OF THE HON'BLE ITAT LUCKNOW IN APPEAL NO. 124/LUK/07, 125/LUK/07, 127/LUK/ 07 AS THE HON'BLE SUPREME COURT IN THE CASE OF TOTGARS COOPERATIVE SALE SOCIETY LIMITED 322 ITR 283 (SC) 2010 HAS HELD THAT THE ADDITION WAS MADE AS INTEREST FROM POST OFFICE AND NATIONALIZED BANK ( OTHER THAN COOPERATIVE BANK) AND THE ASSESSES FAILED TO P ROVE WITH SUPPORTING DOCUMENTARY EVIDENCE THAT INTEREST INCOME WAS EXCLUSIVELY DERIVED FROM DEPOSITS IN THE SAVING BANK ACCOUNT AND NOT FROM LONG - TERM DEPOSITS MADE FOR LONG TERM INVESTMENTS OUT OF SURPLUS FUNDS TO EARN INTEREST INCOME WHICH DOES NOT QUALI FY FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE I.T. ACT, 1961 AND THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE ASSESSING OFFICER AS THE FACTS OF THE INSTANT CASE ARE DIFFERENT FROM THE CASE LAW CITED BY THE ASSESSEE. MOREOVER, ON THE SAME ISSUE THE MAT TER IS PENDING BEFORE THE HON'BLE HIGH CORNT IN THE CASE OF M/S KHERI PILIBHIT SAHAKARI GANNA VIKAS SAMITI LIMITED, LAKHIMPUR KHERI. 2. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MAY BE CANCELLED AND THE ORDER OF THE ASSESSING OFFICER MAY BE RESTORED. 3. THE GROUNDS RAISED BY THE REVENUE IN I.T.A. NO.738/LKW/2013 ARE AS UNDER: 1. THAT THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IS NOT JUSTIFIED IN DELETING THE ADDITION OF RS.37,33,330/ - PLACING RELIANCE OF THE JUDGMENTS OF THE HON'BLE ITAT LUCKNOW IN APPEAL NO. 124/LUK/07, 125/LUK/07, 127/LUK/07 AS THE HON'BLE SUPREME COURT IN THE CASE OF TOTGARS COOPERATIVE SALE SOCIETY LIMITED 322 - ITR - 283 (SC) 2010 HAS HELD THAT THE ADDITION WAS MADE AS INTEREST 3 FROM POST OFFICE AND NATIONALIZED BANK ( OTHER THAN COOPERATIVE BANK) AND THE ASSESSEE FAILED TO PROVE WITH SUPPORTING DOCUMENTARY E VIDENCE THAT INTEREST INCOME WAS EXCLUSIVELY DERIVED FROM DEPOSITS IN THE SAVING BANK ACCOUNT AND NOT FROM LONG - TERM DEPOSITS MADE FOR LONG TERM INVESTMENTS OUT OF SURPLUS FUNDS TO EARN INTEREST INCOME WHICH DOES NOT QUALIFY FOR DEDUCTION UNDER SECTION 80P (2)(D) OF THE I.T. ACT, 1961 AND THEREFORE, THE ADDITION WAS RIGHTLY MADE BY THE ASSESSING OFFICER AS THE FACTS OF THE INSTANT CASE ARE DIFFERENT FROM THE CASE LAW CITED THE ASSESSEE. MOREOVER, ON THE SAME ISSUE THE MATTE IS PENDING BEFORE THE HON'BLE HIGH COURT IN THE IN THE CASE OF M/S KHERI PILIBHIT SAHAKARI GANNA VIKAS SAMITI LIMITED, LAKHIMPUR KHERI. 2. THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MAY BE CANCELLED AND THE ORDER OF THE ASSESSING OFFICER MAY BE RESTORED. 4. IN BOTH THESE CASES, LEARNED D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS LEARNED A.R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT(A). HE ALSO SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL DECISION RENDERED IN THE CASE OF INCOME TAX OFFICER VS. SAHKARI GANNA VIKAS SAMITI LTD. IN I.T.A. NO.817/LKW/08 DATED 28/11/2008. HE SUBMITTED A COPY OF THIS TRIBUNAL ORDER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IN BOTH THESE CASES, THE ISSUE IN DISPUT E IS REGARDING ALLOWABILITY OF DEDUCTION U/S 80P OF THE ACT IN RESPECT OF INTEREST INCOME EARNED FROM BANKS/POST OFFICE FDR ETC. IN THE CASE OF INCOME TAX OFFICER VS. SAHKARI GANNA VIKAS SAMITI LTD. (SUPRA), CITED BY LEARNED A.R. OF THE ASSESSEE ALSO, TH E ISSUE IN DISPUTE WAS REGARDING ALLOWABILITY OF DEDUCTION U/S 80P IN RESPECT OF INTEREST EARNED FROM STATE BANK OF INDIA, PUNJAB NATIONAL BANK AND ORIENTAL BANK OF COMMERCE ALONG WITH INTEREST RECEIVED ON FDR AND FROM POST OFFICE. IN THIS CASE, THE TRIBU NAL HAS FOLLOWED THE JUDGMNENTS OF HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME - TAX VS CO - OPERATIVE CANE DEVELOPMENT UNION LTD. 4 [1079] 118 ITR 770 (ALL) AND ALSO THE JUDGMENT OF HON'BLE ALLAHABAD HIGH COURT RENDERED IN THE CASE OF COMMISSIONER OF INCOME - TAX VS KRISHAK SAHKARI GANNA SAMITI LTD. [2002] 258 ITR 594 (ALL) AND DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FOLLOWING THIS TRIBUNAL DECISION AND THESE TWO JUDGMENTS OF HON'BLE ALLAHABAD HIGH COURT, WE DECLINE TO INTERFERE IN THE ORDER OF CIT(A) IN BOTH THE CASES. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE STAND DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YAD AV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 /11/2014 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1 . THE APPELLANT 2 . THE RESPONDENT. 3 . CONCERNED CIT 4 . THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR