SIKAR SAHAKARI BHOOMI VIKAS BANK LTD., Jaipur V. ITO, Sikar

ITA 878/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5622 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 24-12-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MAHEDRA GARGIEYA
• Section: 244A

Judgement Text

ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 1 IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 878/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 05 /01/2016 VKNS'K@ ORDER FU/KKZFJRH DH VKSJ LS@ ASSESSEE BY SH. MAHEDRA GARGIEYA (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJENDRA SINGH (JCIT) PER SHRI VIKRAM SINGH YADAV, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-III, JAIPUR DATED 27.10.2014 WHEREIN THE ASSESSEE HAS T AKEN THE FOLLOWING GROUND OF APPEAL: 1.1 THE LD. CIT(A) ERRED IN LAW AS WELL S ON THE FA CTS OF THE CASE IN CONFIRMING THE DENIAL OF THE CLAIM OF DEDUCTION MADE BY THE SOCIETY U/S M/S SIKAR SAHAKARI BHOOMI VIKAS BANK LTD. BASANT VIHAR, JAIPUR ROAD, SIKAR CUKE V/S. ITO,WARD - 1, SIKR LFKK;H YS[KK LA-@THVKJBZVKJ LA-@ PAN NO. AAAAS 603E ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 2 80P(2)(A)(I) OF THE ACT. THE CLAIM OF DEDUCTION SO DENIED/CONFIRMED , BEING TOTALLY CONTRARY TO THE PROVISIONS OF LAW AN D FACTS KINDLY BE ALLOWED CLAIMED. 1.2 THE LD. CIT(A) ERRED IN LAW AS WELL AS THE FAC TS OF THE CASE IN FURTHER CONFIRMING THE INVOKING OF AND MISINTERPRETI NG THE PROVISIONS OF SEC.80P(4) OF THE ACT AND CONSEQUENTLY, DENYING THE CLAIM OF DEDUCTION MADE BY THE SOCIETY U/S 80P(2)(A)(I) OF T HE ACT. THE CLAIM OF DEDUCTION SO CONFIRMED/DENIED, BEING TOTALLY CONTRAR Y TO THE PROVISIONS OF LAW AND FACTS KINDLY BE ALLOWED AS CLAIMED. ALTERNATIVELY AND WITHOUT PREJUDICE TO ABOVE, 1.3 THE LD. CIT(A) ERRED IN LAW AS WELL AS ON THE F ACTS OF THE CASE IN CONFIRMING THE FINDING OF THE AO IN CONSIDERING THE ASSESSEE NEITHER A PRIMARY AGRICULTURAL CREDIT SOCIETY (PACS) NOR A PRI MARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK (PCARDB) AND THERE BY DENYING THE CLAIM OF DEDUCTION MADE BY THE SOCIETY U/S 80P(2)(A)(I) R/W 80P(4) OF THE ACT. THE APPELLANT THEREFORE, KIN DLY BE HELD AS A PRIMARY AGRICULTURAL CREDIT SOCIETY (PACS) AND/OR P RIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK AND THE CLAI M OF DEDUCTION SO MADE BE ALLOWED IN FULL. 2. THE AO & LD. CIT(A) FURTHER ERRED IN LAW AS WEL L AS ON THE FACTS OF THE CASE IN CHARGING INTEREST U/S 234A, 234B, 234 C & 234D OF THE ACT AND AS ALSO IN WITHDRAWING INTEREST U/S 244A OF THE ACT. THE APPELLANT TOTALLY DENIES ITS LIABILITY OF CHARGING AND WITHD RAWAL OF ANY SUCH INTEREST. THE INTEREST SO CHARGED/WITHDRAWN, BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS, KINDLY BE DELETED IN F ULL. ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 3 2. AT THE OUTSET, IT WAS SUBMITTED BY THE LD. AR T HAT THE ISSUE IS DIRECTLY COVERED IN ASSESSEES OWN CASE BY THE ORDER DATED 17.07.2015 IN ITA NO. 999/JP/2011 FOR A.Y. 2008-09 ( 2015) 124 DTR 123(JP), ORDER DATED 11.082015 IN ITA NO. 177/JP/201 3 FOR A.Y. 2009- 10 AND ORDER DATED 30.10.2015 IN ITA NO.183/JP/2014 F OR A.Y. 2010-11. VIDE THESE ORDERS, THE ASSESSEE WAS HELD ENTITLED T O THE DEDUCTION CLAIMED U/S 80P(2)(A)(I) OF THE ACT. 2.1 THE LD. DR IS HEARD. HE HAS SUPPORTED THE ORDER OF THE LOWER AUTHORITIES AND PRAYED TO UPHELD THE ORDER OF THE LD. C IT(A). 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ISSUE UNDER DISPUTE RELATES TO ELIGIBILITY OF THE ASSESSEE U/S 80P(2)(A)(I) OF THE INCOME TAX ACT. THE CO-ORDINATE BENCHES OF THE ITAT IN ITS EARLIER DECISIONS FOR A.Y. 2008-09, 2009-10 & 2010-11 HAVE CONSISTENTLY HELD THAT THE ASSESSEE SHA LL BE ELIGIBLE FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. THE RELEVANT FINDINGS OF THE COORDINATE BENCH IN ITS LATEST ORDER DATED 30.10.201 5 IN ITA NO. ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 4 183/JP/14 FOR AY 2010-11 IS CONTAINED AT PARA 6 OF IT S ORDER WHICH READS AS UNDER: WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THIS BRANCH H AS ALREADY CONSIDERED THIS ISSUE IN ITA NO. 999/JP/2011 FOR A.Y. 2008-09 AND ITA NO. 177/JP/2013 FOR A.Y.2009-10. THE OPERATIVE PORTION OF THE ORDER DATED 11.08.2015 IS REPRODUCED AS UNDER: WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AFTER GO ING THROUGH THE CASE LAWS CITED BY THE ASSESSEE AS WELL AS BYELAWS OF SOCIETY REVEALED THAT THE ASSESSEE IS NOT A COOPERATIVE BAN K BUT COOPERATIVE SOCIETY. THE EXCLUSIVE PROVISION TO SUB -SECTION (4) OF SECTION 80P IS NOT APPLICABLE IN THE CASE OF THE AS SESEE. THE CASE LAW REFERRED BY THE ASSESSEE IN THE CASE OF CIT VS. JAFARI MOMIN VIKAS COOPERATIVE CREDIT SOCIETY LTD. (SUPRA) IS SU RELY APPLICABLE. THE HONBLE GUJARAT HIGH COURT HAS HELD AS UNDER: FROM THE ABOVE CLARIFICATION. IT CAN BE GATHERED TH AT SUB-SECTION (4) OF SECTION 80P WILL NOT APPLY TO AN ASSESSEE WH ICH IS NOT CO- OPERATIVE BANK. IN THE CASE CLARIFIED BY CBDT, DEL HI COOP URBAN THRIFT & CREDIT SOCIETY LT. WAS UNDER CONSIDERATION . CIRCULAR CLARIFIED THAT THE SAID ENTITY NOT BEING A COOPERAT IVE BANK, SECTION 80P(4) OF THE ACT WOULD NOT APPLY TO IT. IN VIEW OF SUCH CLARIFICATION, WE CANNOT ENTERTAIN THE REVENUES CO NTENTION THAT SECTION 80P(4) WOULD EXCLUDE NOT ONLY THE CO-OPERAT IVE BANKS OTHER THAN THOSE FULFILLING THE DESCRIPTION CONTA INED THEREIN BUT ALSO CREDIT SOCIETIES, WHICH ARE NOT COOPERATIVE BA NKS. IN THE PRESENT CASE, RESPONDENT ASSESSEE IS ADMITTEDLY NOT A CREDIT COOPERATIVE BANK BUT A CREDIT CO-OPERATIVE SOCIETY EXCLUSION CLAUSE ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 5 OF SUB-SECTION (4) OF SECTION 80P, THEREFORE, WOULD NOT APPLY. IN THE RESULT TAX APPEALS ARE DISMISSED. BY RESPECTFULLY FOLLOWING THE DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. JAFARI MO MIN VIKAS COOPERATIVE CREDIT SOCIETY LTD. (SUPRA) ON IDENTICAL ISSUE. WE HOLD THAT THE ASSESSEE IS A COOPERATIVE SOCIETY NOT A COOPERATIVE BANK AND IS ENTITLED FOR DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. AS THE FACTS AND CIRCUMSTANCES OF THE CASE ARE IDENTICAL TO THE EARLIER YEARS, THEREFORE, BY RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH WE ALLOW THE ASSESSEES APPEAL. 2.4 IT IS NOT IN DISPUTE THAT THE FACTS AND CIRCUMST ANCES OF THE CASE ARE IDENTICAL TO THE EARLIER YEARS, THEREFORE, RESPECTFUL LY FOLLOWING THE DECISION OF THE COORDINATE BENCHES AS REFERRED ABOVE, THE GROUND TAKEN BY THE ASSESSEE IS ALLOWED. 3. REGARDING THE GROUND NO. 2 WHEREIN THE ASSESSEE H AS CHALLENGED THE LEVY OF INTEREST U/S 234A, 234B, 234C & 234D & WITHDRAWAL OF INTEREST U/S 244A, NO SPECIFIC ARGUMENT HAVE BEEN TA KEN BY THE LD. AR. IN ANY CASE THE SAID LEVY/WITHDRAWAL OF INTEREST IS CONSEQUENTIAL IN NATURE HENCE THE GROUND TAKEN BY THE ASSESSEE IS DI SMISSED. ITA NO. 878/JP/14 M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD.SIKAR 6 IN THE RESULT, THE APPEAL FILED BY THE ASSESSE E IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05/0 1/2016. SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 05/01/2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S SIKAR SAHKARI BHOOMI VIKAS BANK LTD. 2. THE RESPONDENT- ITO. WARD-1, SIKAR 3. THE CIT(A).III, JAIPUR 4. THE CIT-III JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.878/JP/14) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR