Asst. CIT, Circle 11(1), Pune V. M/s. Maharashtra Rajya Wakhar Mahamandal Sevakanchi Sah. Patsanstha Ltd., Pune

ITA 760/PUN/2013

• Counselvise Citation: 76024514 RSA 2013
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 02-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L PATHADE
• Assessee Lawyers: K SRINIVASAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE BEFORE: SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO. 760 /PN/20 1 3 ASSESSMENT YEAR : 200 9 - 10 THE ASSTT. COMMISSIONER OF INCOME T AX, CIRCLE 11(1), PUNE VS. M/S. MAHARASHTRA RAJYA WAKHAR MAHAMANDAL SEVAKANCHI SAH. PATSANSTHA LTD., 583/13, VAKHAR MAHAMANDAL MARKET YARD, GULTEKDI, PUNE (APPELLANT) (RESPONDENT) PAN NO. AAAAM1857G APPELLANT BY: SHRI P.L. PATHADE RESPONDENT BY: SHRI K. SRINIVASAN DATE OF HEARING : 1 0 - 0 4 - 2014 DATE OF PRONOUNCEMENT : 25 - 0 4 - 2014 ORDER P ER R.S. PADVEKAR , JM : - IN THIS APPEAL , THE REVENUE HAS CHALLENG ED THE IMPUGNED ORDER OF THE LD. CIT(A) - I , PUNE DATED 21 - 01 - 2013 F OR THE A.Y. 200 9 - 10. THE REVENUE HAS TAKEN THE FOLLOWING EFFECTIVE GROUND S IN THE APPEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IS CONTRARY TO LAW AND TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) GROSSLY ERRED IN HOLDING THAT THE BENEFIT OF SECTION 80P(2)(D) IS AVAILABLE TO THE ASSESSEE DESPITE THE FACT THAT THE INTEREST INCOME OF RS,14,38,830/ - WAS RECEIVED BY THE ASSESSEE NOT FROM ANOTHER CO - OPERATIVE SOCIETY AS REQUIRED BY THE SAID SECTION, BUT FROM A C O - OPERATIVE BANK. 3. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) GROSSLY ERRED IN HOLDING THE INTEREST INCOME OF RS.14,38,830/ - WAS RECEIVED BY THE ASSESSEE FROM PUNE DIST. CENTRAL CO - OP. BANK WHICH, THOUGH A COOPERATIVE BANK, HAS THE SAME STATUS AS THA T OF A CO - OPERATIVE SOCIETY. 2 ITA NO. 760/PN/2013, M/S. MAHARASHTRA RAJYA WAKHAR MAHAMANDAL SEVAKANCHI SAH. PATSANSTHA LTD., PUNE 4. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) GROSSLY ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION U/S.80P(2)(C)(II) IN RESPECT OF RENT RECEIVED FROM SUB - LETTING OF CANTEEN WITHOUT APPRECIATING THAT THE SAID I NCOME IS NOT IN THE NATURE OF PROFITS AND GAINS ATTRIBUTABLE TO THE ASSESSEE'S ACTIVITIES. 2. GROUND NOS. 1 TO 3 ARE IN RESPECT OF THE DEDUCTION OF INTEREST INCOME OF RS.14,38,830/ - U/S. 80P(2)(D) OF THE ACT. THE BRIEFLY STATED FACTS ARE AS UNDER. THE A SSESSEE IS EMPLOYEE S CO - OPERATIVE CREDIT SOCIETY ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS. THE ASSESSEE HAS CLAIMED THE INTEREST INCOME ON THE FIXED DEPOSITS WITH PUNE DISTRICT CENTRAL CO - OPERATIVE BANK (PDCC), PUNE OF RS.14,43,975/ - U/S. 80 P(2)(D) OF THE ACT. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE BY HOLDING THAT THE SAID CLAIM CANNOT BE ALLOWED TO THE ASSESSEE U/S. 80P(4) OF THE ACT. THE ISSUE WAS CARRIED BEFORE THE LD.CIT(A), WHO ALLOWED THE DEDUCTION CLAIMED BY THE ASS ESSEE IN RESPECT OF THE INTEREST ON FIXED DEPOSITS WITH THE PDCC BANK. NOW THE REVENUE IS IN APPEAL BEFORE US. 3. THE IDENTICAL ISSUE HAS COME BEFORE THE ITAT A BENCH, PUNE IN THE CASE OF ITO, WARD - 1(1), AURANGABAD VS. M/S. SUBORDINATE ENGINEERS ASSOCIATI ON CO - OPERATIVE CREDIT SOCIETY LIMITED, AURANGABAD ITA NO. 1720/PN/2012 ORDER DATED 31 - 10 - 2013 AND IT IS HELD AS UNDER: 4. SO FAR AS THE RELIANCE PLACED BY THE ASSESSING OFFICER ON THE DECISION OF TOTAGHAR COOPERATIVE SOCIETY SALES LTD. (SUPRA), IN OUR OP INION, THE SAID DECISION IS RENDERED INTO DIFFERENT CONTEXT AS THE CLAIM U/S. 80P(2) OF THE ACT WAS NOT BEFORE THE HON'BLE SUPREME COURT. WE ACCORDINGLY UPHOLD THE ORDER OF THE LD. CIT(A) AND DISMISS THE GROUNDS TAKEN BY THE REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 4. WE, THEREFORE, FOLLOWING THE PRINCIPLES LAID DOWN IN THE CASE OF M/S. SUBORDINATE ENGINEERS ASSOCIATION CO - OPERATIVE CREDIT SOCIETY 3 ITA NO. 760/PN/2013, M/S. MAHARASHTRA RAJYA WAKHAR MAHAMANDAL SEVAKANCHI SAH. PATSANSTHA LTD., PUNE LIMITED, AURANGABAD (SUPRA) CONFIRM THE ORDER OF THE LD. CIT(A) ON THIS ISS UE AND GROUND NOS. 1 TO 3 ARE DISMISSED. 5. GROUND NO. 4 IS IN RESPECT OF THE RENTAL INCOME OF RS.9,000/ - . IN RESPECT OF WHICH THE ASSESSEE HAS CLAIMED THE DEDUCTION U/S. 80P(2)(C)(II) OF THE ACT WHICH WAS DENIED BY THE ASSESSING OFFICER. THE ASSESSEE SO CIETY HAS RECEIVED RENT FROM SUBLETTING ITS CANTEEN OF RS.9,000/ - . THE ASSESSEE CLAIMED THE DEDUCTION U/S. 80P(2)(C)(II) OF THE ACT THE SAME WAS DENIED BY THE ASSESSING OFFICER. THE LD. CIT(A) HAS OBSERVED THAT THE ASSESSEE HAD SHOWN THE ENTIRE RENT IN THE INCOME EXPENDITURE STATEMENT WITHOUT CLAIMING ANY DEDUCTIONS. AS NOTED BY THE LD. CIT(A) THE ASSESSEE IS ELIGIBLE FOR THE BASIC DEDUCTION OF RS.50,000/ - U/S. 80P(2)(C)(II) OF THE ACT. 6. THE SHORT ISSUE BEFORE US IS WHETHER THE LD. CIT(A) RIGHTLY AL LOWED THE CLAIM OF DEDUCTION IN RESPECT OF RENT RECEIVED BY THE ASSESSEE SOCIETY BY SUBLETTING THE CANTEEN U/S. 80P(2)(C)(II) OF THE ACT. IN OUR OPINION, THIS ISSUE STANDS COVERED BY THE PRINCIPLES LAID DOWN IN THE CASE OF COMMISSIONER OF INCOME TAX VS. R ATANABAD CO - OPERATIVE HOUSING SOCIETY LIMITED 215 ITR 549 (BOM) . WE DO NOT FIND ANY REASON TO TAKE DIFFERENT VIEW AS TAKEN BY THE LD. CIT(A). WE, ACCORDINGLY, CONFIRM THE ORDER OF THE LD. CIT(A). ACCORDINGLY, GROUND NO. 4 IS DISMISSED. 7. IN THE RESU LT, THE REVENUES APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 25 - 0 4 - 201 4 SD/ - SD/ - ( R.K. PANDA ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL MEMBER RK /PS PUNE , DATED : 25TH APRIL, 2014 4 ITA NO. 760/PN/2013, M/S. MAHARASHTRA RAJYA WAKHAR MAHAMANDAL SEVAKANCHI SAH. PATSANSTHA LTD., PUNE COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) - I , PUNE 4 THE CIT - I , PUNE 5 THE DR, ITAT, A BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE