Kakati Prathamik Krishi Pattin Sahakari Sangh Nyamit, Belgavi V. ITO, Ward - 1(2), Belgavi

ITA 85/PAN/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3467 (ITAT-PANAJI)
• Duration Of Justice: 3 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 01-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAVIN P GHALI
• Keywords: Principle of natural justice
• Section: 80P

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI, BENCH PANAJI , , BEFORE SHRI LALIET KUMAR, JM AND DR. MITHA LAL MEENA, AM ITA NO. 85 /PAN/201 8 (AY : 20 1 2 - 20 1 3 ) KAKATI PRATHAMIK KRISHI PATTIA SAHAKARI SANGH NIYAMIT, KAKTI TAL/DIST BELAGAVI PAN NO.AA AA K 1503 VS ITO, WARD - 1 (2) , BELGAUM ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI PRAVIN P. GHALI, CA /REVENUE BY : SHRI SOURABH NAYAK , SR.D R / DATE OF HEARING : 0 8 /1 0 /202 1 / DATE OF PRONOUNCEMENT : 08 /10 /202 1 / O R D E R PER BENCH : THIS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE CIT (A) , GULBARGA , DATED 29.12.2017 FOR THE ASSESSMENT YEAR 2012 - 2013. 2. AT THE OUTSET, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) HAS PASSED THE ORDER EX PARTE QUA THE ASSESSEE. HE ARGUED THAT ASSESSEE IS A COOPERATIVE SOCIETY REGISTERED UNDER THE STATE COOPERATIVE SOCIETY THE MAIN OBJECT OF THE SOCIETY IS TO ACCEPT TO DEPOSITS AND PROVIDE FINANCIAL ACCOMMODATION TO THE MEMBERS OF THE SOCIETY THEREFORE, IT HAS CLAIMED THAT THE SOCIETY WAS ENTITLED DEDUCTION U/S80P (2)(A) (I) AS IT IS BEIN G A COOPERATIVE SOCIETY PROVIDING CREDIT FACILITIES TO ITS MEMBERS ONLY. THE LD. COUNSEL CONTENDED THAT THE LD. CIT(A) HAS ERRED BY NOT ALLOWING THE INTEREST PAID ON LOANS ON THE FIXED DEPOSITS WHICH WAS TAKEN FOR PROVIDING LOANS TO ITS MEMBERS. IN SUPPORT OF ITS CONTENTIONS HE PLACED RELIANCE ON THE ITA NO. 85 /PAN/201 8 2 JUDGMENT OF HONBLE APEX COURT IN THE CASE OF CITIZEN COOPERATIVE SOCIETY, CITATION TS 324 HON'BLE SUPREME COURT - 2017 DATED 16.08.2017 AND THE MAVILAYI SERVICE COOPERATIVE BANK LTD. & ORS VS. CIT, CIVIL APPEA L NOS. 7343 TO 7350/2019 DATED JANUARY 12, 2021. 3. THE LD. DR STAND BY THE ORDER OF THE LD. CIT(A) HE SUBMITTED THAT THE APEX COURT IN THE CASE OF M/S TOTGA COOPERATIVE SALES SOCIETY LTD. IS APPLICABLE TO THE FACTS OF THE CASE AS THERE WERE NO PAYABLE TO THE CREDITORS WHO SUPPLIED AGRICULTURE PRODUCE TO THE SOCIETY AND THE AMOUNT PAYABLE TO THE CREDITORS WAS BEING INVESTED IN RESPECTED BANKS. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE CIT(A) REJECT ED THE CONTENTIONS OF THE ASSESSEE HOLDING THAT ASSESSEE FAILED TO EXPLAIN WHY THE ASSESSEES CASE WAS NOT COVERED BY THE JUDGMENT OF THE APEX COURT IN THE CASE OF CITIZEN COOPERATIVE SOCIETY [TS - 326 - SUPREME COURT - 2017], DATED 16 TH AUGUST, 2017. IT IS SEE N THAT THE SUBMISSION FILED BY THE ASSESSEE BEFORE US WERE NOT EXAMINED BY THE LD. CIT(A) AND PASSED IN ORDER EX PARTE QUA THE ASSESSEE WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND CANNOT BE APPROVED. 5 . IN VIEW OF THE INTRODUCTION OF SUB SE CTION 4 TO SECTION 80P OF THE ACT THE AO WHILE EXAMINING THE CLAIM MADE BY THE SOCIETY FOR SUCH DEDUCTION CANNOT BE ALLOWED MERELY LOOKING AT CLASS OF SOCIETY AS PER CERTIFICATE OF REGISTRATION ISSUED UNDER THE CENTRAL OR STATE SOCIETIES ACT SINCE EACH ASS ESSMENT IS A SEPARATE ASSESSMENT, THE INTENTION OF LEGISLATURE IS A NO MANNER DEFEATED BY NOT ALLOWING DEDUCTION U/S 80P WHY REASON OF SUB ITA NO. 85 /PAN/201 8 3 SECTION 4 THEREOF AS PER THE DECISION OF APEX COURT IN THE CASE OF MAVILAYI SERVICE COOPERATIVE BANK LTD. (SUPRA). 6 . CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED OPINION THAT THE EX PARTE ORDER PASSED BY THE LD. CIT(A) IS REQUIRED TO BE RELOOKED AND EXAMINED AFRESH BY HIM IN THE LIGHT OF THE DECISION OF HONBLE APEX COURT IN THE CASE OF CITIZEN COOPERATIVE SOCIETY AND MAVILAYI SERVICE COOPERATIVE BANK LTD. (SUPRA). IN OUR VIEW, THIS IS A FIT CASE TO SEN D BACK TO THE LD. CIT(A) TO PASS AFRESH ORDER ADDRESSING THE GRIEVANCE OF THE ASSESSEE AFTER CONSIDERING THE DOCUMENTARY EVIDENCES FILED W ITH THE SUPPORT OF CITATIONS APPLICABLE AS ABOVE. WE DIRECT THE LD. CIT(A) TO GRANT ADEQUATE OPPORTUNITY TO THE ASSESSEE SOCIETY AND ADJUDICATE THE MATTER WITHIN THE PERIOD OF RECEIPT OF THIS ORDER. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 08 / 10 / 2021. SD/ - SD/ - ( ) (DR. M ITHA LAL MEENA ) ( ) (LALIET KUMAR) / ACCOUNTANT MEMBER / JUDICIAL MEMBER /PANAJI ; DATED 08 /10 /202 1 PRAKASH KUMAR MISHRA, SR.P.S. / CO PY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , /ITAT, PANAJI 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, PANJAJI 6. / GUARD FIL E. //TRUE COPY//