Sindh Punjab Mercantile Credit Sahakarita Ltd., Indore V. ACIT-5(1), Indore

ITA 746/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0986 (ITAT-INDORE)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 08-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.P.MOURYA
• Assessee Lawyers: ARPIT GOUR; BRINGING ANY CONTRARY
• Section: 143(3); 20

Judgement Text

SMC SINDH PUNJAB MERCANTILE CREDIT SAHKARITA LTD. ITA NO.746 OF 2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.746/IND/2019 A.Y. 2015-16 SINDH PUNJAB MERCANTILE CREDIT SAHKARITA LTD., IND ORE PAN AABAS5085R :: APPELLANT VS ACIT-5(1), INDORE :: RESPONDENT ASSESSEE BY S/SHRI ANIL KAMAL GARG & ARPIT GOUR, CAS RESPONDENT BY SHRI R.P. MOURYA , SR. DR DATE OF HEARING 03 . 0 3 .20 20 DATE OF PRONOUNCEMENT 03 .0 6 .20 20 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. CIT(A)-II, INDORE DATED 25.04.2019 PERTAINING TO A SSESSMENT YEAR 2015-16. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: GROUNDS OF INCOME-TAX APPEAL BEFORE THE HON'BLE INC OME-TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE, AGAINST THE APPELLA TE ORDER PASSED UNDER S. 250/143(3) OF THE INCOME-TAX ACT, 1961 BY THE LEARNED COMMISS IONER OF INCOME- TAX (APPEALS)-II, INDORE, PERTAINING TO THE A.Y. 20 15-16 IN RESPONSE TO THE APPEAL FILED AGAINST THE ASSESSMENT ORDER UNDER S.143(3) O F THE ACT, PASSED BY THE LEARNED ASSISTANT COMMISSIONER OF INCOME-TAX, 5(1), INDORE. 1. THAT, THE LEARNED CIT(A) GROSSLY ERRED, BOTH ON FACTS AND IN LAW, IN CONFIRMING THE ADDITION OF RS.2,40,338/- MADE BY THE AO IN THE APPELLANT'S INCOME BY HOLDING THAT THE INTEREST INCOME EARNED BY THE APPELLANT CR EDIT SOCIETY ON SAVING BANK AND SMC SINDH PUNJAB MERCANTILE CREDIT SAHKARITA LTD. ITA NO.746 OF 2019 2 F .D.R. WITH NATIONALIZED BANKS WAS NOT FALLING UND ER THE PROVISIONS OF SECTION 80P(2)( D) AND THEREFORE, IN HOLDING THAT THE ENTIR E INTEREST INCOME EARNED BY THE APPELLANT FROM SUCH BANK WAS LIABLE FOR TAXATION UN DER THE HEAD 'INCOME FROM OTHER SOURCES' . 2. THAT, WITHOUT PREJUDICE TO THE ABOVE, THE LEARNE D CIT (A) GROSSLY ERRED IN NOT CONSIDERING AND APPRECIATING THE MATERIAL FACT THAT THE APPELLANT SOCIETY HAD MADE DEPOSITS WITH NATIONALIZED BANKS DURING THE CO URSE OF, AND AS ALSO FOR THE PURPOSE OF CARRYING OUT ITS BUSINESS OF PROVIDING C REDIT FACILITIES TO ITS MEMBERS. 3. THAT, WITHOUT PREJUDICE TO THE ABOVE, THE LEARNE D CIT(A) GROSSLY ERRED IN NOT CONSIDERING AND APPRECIATING THE MATERIAL FACT THAT IN THE EARLIER ASSESSMENT YEARS THE CLAIM OF THE APPELLANT AS REGARD TO DEDUCTION U NDER S. 80P(2)(A)(I) QUA THE INTEREST INCOME ON DEPOSITS WITH BANK WAS DULY ALLO WED EVEN IN THE ASSESSMENTS FRAMED UNDER S. 143(3) OF THE ACT AND THEREFORE, IN ABSENCE OF ANY CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THERE WAS NO R EASON FOR TAKING A DIFFERENT VIEW FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. 4. THAT, THE APPELLANT FURTHER CRAVES LEAVE TO ADD, ALTER AND/OR AMEND ANY OF THE FOREGOING GROUNDS OF APPEAL AS AND WHEN CONSIDERED NECESSARY. 2. AT THE OUTSET OF HEARING, LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.2,40,338/- MADE BY THE AO IN THE APPELLANT'S INCOME BY HOLDING THAT THE INTEREST INCOME EARNED B Y THE APPELLANT CREDIT SOCIETY ON SAVING BANK AND F .D.R. WITH NATIONALIZED BANKS WAS NOT FALLING UNDER THE PROVIS IONS OF SECTION 80P(2)( D) AND THE ENTIRE INTEREST INCOME EARNED BY THE APPELLANT FROM SUCH BANK WAS LIABLE FOR TAXATION UNDER THE HE AD 'INCOME FROM OTHER SOURCES'. THIS ISSUE HAS BEEN DEALT WITH BY THIS VERY SMC SINDH PUNJAB MERCANTILE CREDIT SAHKARITA LTD. ITA NO.746 OF 2019 3 BENCH IN THE CASE OF M.P. POLICE SAKH SAHKARITA MARYADIT ORDER DATED 17.12.2019 (ITANO.422/IND/2017 & ITANO.649/IN D/2019 WHEREIN THE AO WAS DIRECTED TO ALLOW THE DEDUCTION CLAIMED U/S 80P(2) OF THE ACT. 3. ON THE OTHER HAND, LD. SR. DR RELIED UPON THE OR DERS OF THE REVENUE AUTHORITIES BUT COULD NOT CONTROVERT THE SU BMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE BY BRINGIN G ANY CONTRARY MATERIAL ON RECORDS. 4. I HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORDS. I HAVE GONE THROUGH THE DECIS ION OF DIVISION BENCH OF I.T.A.T., INDORE IN THE CASE OF M.P. POLICE SAKH SAHKARITA MARYADIT ORDER DATED 17.12.2019(SUPRA) WHEREIN ON THE SIMIL AR SET OF FACTS THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. I, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE AND FOLLOWING THE DECISION OF THE TRIBUNAL RENDERED IN THE CASE OF M.P. POLICE SAKH SAHKARITA MARYADIT ORDER DATED 17.12.20 19 (SUPRA) THE OPINION THAT IN THE GIVEN SET OF FACTS OF THE INSTANT APPEAL THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.2,40,338/- MADE BY THE AO. ACCORDINGLY, I DIRECT THE AO TO DELETE THE ADDITION. SMC SINDH PUNJAB MERCANTILE CREDIT SAHKARITA LTD. ITA NO.746 OF 2019 4 5. IN RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOW ED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 03 .06. 2020. SD/- (KUL BHARAT) JUDICIAL MEMBER DATED : 03 .06.2020 PATEL/PS COPY TO: APPELLANT/RESPONDENT/PR.CIT(A)/PR.CIT/DR, INDORE