The Income Tax Officer, Ward-1, Gokak., Gokak V. Shri Basaveshwar Urban Credit Souhard Sahakari Niyamit., Gokak

ITA 88/PAN/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2031 (ITAT-PANAJI)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SRINIVAS
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 8 8 /P A N/201 6 (ASST. YEAR : 20 12 - 1 3 ) ITO, WARD - 1, GOKAK . VS. SHRI BASAVESHWAR URBAN CREDIT SOUHARDA SAHAKARI NIYAMIT, KALLOLI, TAL : GOKAK, DIST. BELAGAVI. PAN NO. AAEAS 1697 N (APPELLANT) (RESPONDENT) ITA NO S . 114 /P A N/201 6 (ASST. YEAR S : 20 12 - 1 3 ) ITO, WARD - 1, SIRSI. VS. M/S. ADARSH SOU HARDA SAHAKARI NIYAMITA, NAYAK BUILDING, HOSPET ROAD, SIRSI. PAN NO. AAAAA 0323 P (APPELLANT) (RESPONDENT) ITA NO S . 115 /P A N/201 6 (ASST. YEAR S : 20 12 - 1 3 ) ITO, WARD - 1, SIRSI. VS. M/S. VIJAYALAKSHMI SOUHARDA SAHAKARI NIYAMITA, NAYAK BUILDING, HOSPET ROAD, SIRSI. PAN NO. AAFAS 3155 E (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V. SRINIVASAN ADVOCATE ( ITA NOS. 114 & 115/PAN/2016 ) NONE (ITA NO. 88/PAN/2016) DEPARTMENT BY : SHRI S. SRINIVAS - DR DATE OF HEARING : 14 / 0 7 /201 6 . DATE OF PRONOUNCEMENT : 14 / 0 7 /201 6 . 2 ITA NO. 88, 114 & 115/PAN/2016 O R D E R THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) , BELAGAVI IN APPEAL NO. 231/BGM/2014 - 15 DATED 29/02/2016 FOR THE ASSESSMENT YEAR 2012 - 13 ; AND THE SEPARATE ORDER S OF THE COMMISSIONER OF INCOME TAX (APPEALS), HUBLI IN APPEAL NOS. 525 & 526 /CIT(A)/HBL/2014 - 15 , EACH DATED 29/02/2016 FOR THE ASSESSMENT YEAR 2012 - 13 . 2. SHRI S. SRINIVAS , DEPARTMENTAL REPRESENTATIVE REPRESENTED ON BEHALF OF THE REVENUE AND SHRI V. SIRNIVASAN REPRESENTED ON B EH A L F OF THE ASSESSEE IN ITA NOS. 114 & 115/PAN/2016 AND NONE REPRESENTED IN ITA NO. 88/PAN/2016. 3 . IT WAS SUBMITTED BY THE DEPARTMENTAL REPRESENTATIVE THAT THE ONLY ISSUE IN THE REVENUES APPEAL WAS AGAINST THE ACTION OF THE COMMISSIONER OF INCOME TAX (APPEALS) IN DELETING THE DISALLOWANCE OF DEDUCTION CLAIMED UNDER SECTION 80P(2)( A ) (I) OF THE ACT. IT WAS THE SUBMISSION THAT THE INTEREST INCOME EARNED BY THE ASSESSEES FROM THE INVESTMENTS MADE IN OTHER COOPERATIVES BANKS, WERE LIABLE TO BE ASSESSED ONLY UNDER THE HEAD INCOME FROM OTHER SOURCES AND AS NOT BUSINESS INCOME . IT WAS THE SUBMISSION THAT THE ASSESSEE WAS A PRIMARY COOPERATIVE BANK, HENCE, IT IS NOT ELIGIBLE FOR DEDUCTION UNDER SECTION 80P (2) UNDER THE PROVISIONS OF SEC. 80P(4) OF THE ACT. 4 . IN REPLY , AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE ISSUE WAS SQUARELY COVERED BY THE DECI S ION S OF THE HONBLE JURISDICTIONAL HIGH COURT OF KARNATAKA IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. IN I . T . A . NO. 307/2014 DATED 28/10/2014 AND ALSO THE DECISION IN THE CASE OF GUTTIGEDARARA CREDIT COOPERATIVE SOCIETY LTD . REPORTED IN 377 ITR 464 (KAR.) WHEREIN , IT HAS BEEN HELD THAT THE INCOME DERIVED BY THE SOCIETY , IS THE AMOUNT EARNS FROM THE PROFITS AND GRAINS OF THE BUSINESS OF BANKING OR PROVIDING 3 ITA NO. 88, 114 & 115/PAN/2016 CREDIT FACILITIES TO ITS MEMBERS , AND IS ENTITLED TO BE DEDUCTED FROM THE GROSS TOTAL INCOME UNDER SECTION 80P . HE VEHEMENTLY SUPPORTED THE ORDER S OF THE COMMISSIONER OF INCOME TAX (APPEALS). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ISSUE S IN THESE APPEALS ARE SQUARELY COVERED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT OF KARNATAKA IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. (SUPRA) AND IN THE CASE OF GUTTIGEDARARA CREDIT COOPERATIVE SOCIETY LTD . (SUPRA) AND AS IT IS ALSO NOTICED THAT NO CO NTRARY DECISION HAS BEEN PLACED , A S ALSO FOR THE REASON IT IS NOTICED THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS FOLLOWED THE JUDICIAL DISCIPLINE IN FOLLOWING THE DECISIONS OF THE HONBLE JURISDICTIONAL HIGH COURT , I FIND THAT THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) ARE IN RIGHT FOOTING AND DO NOT CALL FOR ANY INTERFERENCE. THOUGH, IT HAS BEEN SUBMITTED BY THE DEPARTMENTAL REPRESENTATIVE THAT THE DECISION OF THE HONBLE JURISDICTIONAL HIG H COURT OF KARNATAKA IN THE CASE OF SHRI BILULRU GURUBASAVA PATTINA SAHAKARI SANGHA NIYAMIT, BAGALKOT IS A SUBJECT MATTER OF SLP BEFORE THE HONBLE SUPREME COURT AND THE SAME H A S ALSO BEEN ADMITTED , S TILL AS THE ISSUES AT PRESENT STAND COVERED BY THE DECISI ON OF THE HONBLE JURISDICTIONAL HIGH COURT OF KARNATAKA AND AS THE SAID DECISION HAS NOT BEEN REVERSED BY THE HONBLE SUPREME COURT TILL NOW, THE FINING OF THE COMMISSIONER OF INCOME TAX (APPEALS) ON THESE ISSUES STAND CONFIRMED. CONSEQUENTLY, APPEALS FILED BY THE REVENUE STAND DISMISSED. 6 . IN THE RESULT, ALL THE APPEAL S OF THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON THURSDAY , THE 1 4 TH DAY OF JU LY , 201 6 AT GOA . S D / - (GEORGE MATHAN) JUDICIAL MEMBER DATED : 1 4 TH JU LY , 201 6 . 4 ITA NO. 88, 114 & 115/PAN/2016 VR/ - COPY TO: 1 . THE ASSESSEE. A . SHRI BASAVESHWAR URBAN CREDIT SOUHARDA SAHAKARI NIYAMIT B . M/S. ADARSH SOUHARDA SAHAKARI NIYAMITA C . M/S. VIJAYALAKSHMI SOUHARDA SAHAKARI NIYAMITA 2 . THE REVENUE. A . ITO, WARD - 1, GOKAK. B . ITO, WARD - 1, SIRSI. 3 . THE CIT 4 . THE CIT(A) 5 . THE D.R . 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI