The Dharti Nagrik Sarafi Sahkari Mandali Ltd., Sabarkantha V. The ACIT.,B.K.Circle, Palanpur

ITA 912/AHD/2011

• Counselvise Citation: 91220514 RSA 2011
• Duration Of Justice: 4 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 29-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH SR D R
• Assessee Lawyers: VIVEK N CHAVDA
• Keywords: Opportunity of being heard

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ././ ./ ITA NO. 912/AHD/2011 / ASSESSMENT YEAR: 2007-08 THE DHARTI NAGRIK SARAFI SAHKARI MANDALI LIMITED, 2 ND FLOOR, YASH BUILDING, CHOKSI BLOCK, OLDGANJ BAZAR ROAD, TAL: PALANPUR, DIST: BANASKANTHA PAN : AAAAT 5025 D V/S. ACIT, B.K. CIRCLE, PALANPUR / // / (APPELLANT) ! ! ! ! / // / (RESPONDENT) ASSESSEE(S) BY : SHRI VIVEK N. CHAVDA, AR REVENUE BY : SHRI DINESH SINGH, SR. DR. '# $ %&'/ // / DATE OF HEARING : 02/06/2015 () $ %&' / // / DATE OF PRONOUNCEMENT: 05/06/2015 *+ *+ *+ *+/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS )-XX, AHMEDABAD DATED 13.12.2010, PERTAINING TO ASSESSMENT YEAR 200 7-08. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE ASS ESSEE READS AS UNDER:- THE LD. C.I.T. (APPEALS) ERRED IN LAW AND ON FACT W HILE CONFIRMING REJECTION OF CLAIM BY LD. A.O. U/S 80P(2)(A)(I) OF THE INCOME TAX ACT, 1961 AND TREATING THE CO-OPERATIVE CREDIT SOCIETY AS CO-OPER ATIVE BANK U/S 80P(4) OF THE INCOME TAX ACT, 1961 AND THE DEDUCTION U/S 80P( 2)(A)(I) OF THE INCOME TAX ACT, 1961 IS REQUIRED TO BE ALLOWED AGAINST APP ELLANT INCOME. ITA NO. 912/AHD/2011 THE DHARTI NAGRIK SARAFI SAHKARI MANDALI LTD VS. AC IT FOR AY 2007-08 2 3. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LD. COUNSEL THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSE SSEE BY THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CI T VS. JAFARI MOMIN VIKAS CO-OP. CREDIT SOCIETY LTD., REPORTED IN [2014] 362 ITR 331 (GUJ.). 4. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED T HAT THE HONBLE JURISDICTIONAL HIGH COURT ONLY SAYS THAT THE EXCLUS ION CLAUSE OF SUB-CLAUSE (4) OF SECTION 80P WOULD BE APPLICABLE TO THE CO-OP ERATIVE BANK AND NOT TO CREDIT CO-OPERATIVE SOCIETY. HE SUBMITTED THAT THE LD. CIT(A) HAS EXAMINED THIS ASPECT IN DETAILS AND AFTER CONSIDERING THE DE FINITION OF CO-OPERATIVE BANK AS PER BANKING REGULATION ACT HAS ARRIVED AT T HE CONCLUSION THAT THE ASSESSEE-SOCIETY WOULD FALL WITHIN THE DEFINITION O F CO-OPERATIVE BANK. HE, THEREFORE, SUBMITTED THAT THE ORDER OF THE LD. CIT( A) SHOULD BE SUSTAINED. 5. IN REJOINDER, THE LD. COUNSEL ALSO REFERRED TO T HE DECISION OF ITAT, AHMEDABAD BENCH IN THE CASE OF SHRI JAY AMBE NAGARI K SARAFI SAHKARI MANDI LTD. VS. ACIT, VIDE ITA NO.814/AHD/2011 IN WH ICH THE MATTER IS SET ASIDE TO THE FILE OF THE ASSESSING OFFICER FOR RE-E XAMINATION. HE REITERATED THAT THE ASSESSEE IS A CO-OPERATIVE SOCIETY AND NOT A CO-OPERATIVE BANK. THEREFORE, THE DECISION OF THE HONBLE JURISDICTION AL HIGH COURT WOULD BE SQUARELY APPLICABLE. 6. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THA T THE ASSESSING OFFICER DENIED EXEMPTION U/S 80P TO THE ASSESSEE ON THE GRO UND THAT AS PER SUB- SECTION (4) OF SECTION 80P, THE PROVISION OF SECTIO N 80P IS NOT APPLICABLE IN RELATION TO ANY CO-OPERATIVE BANK OTHER THAN A PRIM ARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK. ITA NO. 912/AHD/2011 THE DHARTI NAGRIK SARAFI SAHKARI MANDALI LTD VS. AC IT FOR AY 2007-08 3 THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F JAFARI MOMIN VIKAS CO- OP. CREDIT SOCIETY LTD. (SUPRA) HELD AS UNDER:- HELD, DISMISSING THE APPEALS, THAT THE ASSESSEE WA S ADMITTEDLY NOT A CREDIT CO-OPERATIVE BANK BUT A CREDIT CO-OPERATIVE SOCIETY . THE EXCLUSION CLAUSE OF SUB-SECTION (4) OF SECTION 80), THEREFORE, WOULD NO T APPLY. 7. THAT THE HONBLE JURISDICTIONAL HIGH COURT HAS H ELD THAT SECTION 80P, SUB-SECTION (4), WOULD BE APPLICABLE ONLY IN THE CA SE OF A CREDIT CO-OPERATIVE BANK AND NOT CREDIT CO-OPERATIVE SOCIETY. STILL THE DISPUTE REMAINS WHETHER THE ASSESSEE IS A CREDIT CO-OPERATIVE BANK OR A CRE DIT CO-OPERATIVE SOCIETY. ADMITTEDLY, THE ASSESSING OFFICER HAS NOT EXAMINED THIS ASPECT. THE CIT(A), OF COURSE, HAS DEALT WITH ON THIS, BUT HE HAS NOT A LLOWED ANY SPECIFIC OPPORTUNITY TO THE ASSESSEE SO AS TO POINT OUT HOW THE ASSESSEE IS NOT A CO- OPERATIVE BANK. IN OUR OPINION, IT WOULD MEET THE E NDS OF JUSTICE IF THE ORDERS OF THE AUTHORITIES BELOW ARE SET ASIDE AND T HE MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RE-EXAMINA TION IN THE LIGHT OF THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF JAFARI MOMIN VIKAS CO-OP. CREDIT SOCIETY LTD. (SUPRA). WE ORDER ACCORDINGLY AND DIRECT THE ASSESSING OFFICER TO RE-ADJUDICATE THE ISSUE AF TER ALLOWING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, THE ASSESSEES APPEAL IS DEEMED T O BE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 05/06/2015 BIJU T., PS ITA NO. 912/AHD/2011 THE DHARTI NAGRIK SARAFI SAHKARI MANDALI LTD VS. AC IT FOR AY 2007-08 4 *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,%/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. % '. / CONCERNED CIT 4. '. ( ) / THE CIT(A) 5. ,12 % , , / DR, ITAT, AHMEDABAD 6. 24 5# / GUARD FILE . *+' *+' *+' *+' / BY ORDER, TRUE COPY 6 66 6/ // / 7 7 7 7 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD