The Sarvodaya Co. Op. Credit Soc. Ltd., Mahisagar V. The Income Tax Officer, Lunawada, Vadodara

ITA 96/AHD/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8314 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 26-09-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 11-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 201; 72

Judgement Text

ITA NO. 96/AHD/2017 ASSESSMENT YEAR 2013 - 14 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD BENCH C , AHMEDABAD [CORAM : JUSTICE PP BHATT, PRESIDENT , AND PRAMOD KUMAR , VICE PRESIDENT ] ITA NO. 96 /AHD/2017 ASSESSMENT YEAR 201 3 - 14 S ARVODAYA CREDIT COOPERATIVE SOCIETY LTD .....APPELLANT AT & PO: PARAMA, TAL LUNAWADA DISTRICT: MAHISAGAR PIN 389 230 [PAN: AAAAT2867M] VS INCOME TAX OFFICER , LUNAWADA ..........RESPONDENT APPEARANCES BY URVASHI SHODHAN FOR THE APPELLANT VINOD TANWANI FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : DECEMBER 20, 201 9 DATE OF PRONOUNC EMENT : MARCH 12 TH , 2020 ORDE R PER BENCH : 1. THIS IS A RECALLED MATTER, VIDE ORDER DATED 24 TH APRIL 2019, TO DISPOSE OF GROUND NO. 5 WHICH WAS INADVERTENTLY LEFT OUT FOR ADJUDICATION IN THE ORIGINAL ORDER DATED 10 TH MAY 2018. WE ARE THUS REQUIRED TO ADJUDICATE ON THIS GROUND, WHICH, FOR READY REFERENCE, IS REPRODUCED BELOW: LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN NOT ADJUDICATING GROUND OF APPEAL CHALLENGING DISALLOWANCE OF DEDUCTION OF INTEREST RECEIVED FROM COOPERATIVE BANKS AND SOCIETIES ALLOWABLE UNDER SECTION 80P(2)(D) OF THE ACT. 2. THE RELEVANT MATERIAL FACTS ARE NOT IN DISPUTE. THE A SSESSEE BEFORE US IS A COOPERATIVE CREDIT SOCIETY. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTION 80P(2)(D) IN RESPECT OF INTEREST INCOME OF RS 12,71,830 RECEIVE D FROM PEOPLE COOPERATIVE BANK AND PANCHMAHAL DISTRICT COOPERATIVE BANK BUT REJECTED THE SAME BY OBSERVING THAT THIS INCOME IS NOT OUT OF ANY INVESTMENT MADE BY THE ASSESSEE WITH OTHER COOPERATIVE SOCIETY. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEA L ITA NO. 96/AHD/2017 ASSESSMENT YEAR 2013 - 14 PAGE 2 OF 2 BEFORE THE CIT(A) AGAINST THIS DISALLOWANCE AS ALSO AGAINST THE DISALLOWANCE OF RS 79,41,104 ON ACCOUNT OF INTEREST ON FDS WITH SCHEDULED BANKS. WHILE LEARNED CIT(A) ADJUDICATED ON THE SECOND COMPONENT, I.E. DISALLOWANCE OF RS 79,41,104, HE DID NOT ADJUD ICATE ON THE ISSUE REGARDING DISALLOWANCE OF INTEREST RECEIVED FROM THE COOPERATIVE BANKS. THE ASSESSEE IS NOT SATISFIED AND IS IN SECOND APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE AND THE APPLICABLE LEGAL POSITION. 5. WE FIND THAT SO FAR DISALLOWANCE OF INTEREST RECEIVED FROM OTHER COOPERATIVE SOCIETIES IS CONCERNED, IT NOW STANDS CONCLUDED, IN FAVOUR OF THE ASSESSEE, BY HONBLE JURISDICTIONAL HIGH COURTS JUDGMENTS IN THE CASES OF SURAT VANKARSAHKARI SANGH LTD VS ACIT [(2016) 72 TAXMANN.COM 169 (GUJ)] AND CIT VS SABAKANTHA DISTRICT COOPERATIVE BANK LTD (TA NO. 473 OF 2014). LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT POINT OUT OUR ATTENTION TO ANY DECISION, FROM HONBL E JURISDICTIONAL HIGH COURT, CONTRARY THERETO. HE, HOWEVER, RELIED UPON THE STAND OF THE ASSESSING OFFICER. RESPECTFULLY FOLLOWING THE BINDING JUDICIAL PRECEDENTS FROM HONBLE JURISDICTIONAL HIGH COURT, WE UPHOLD THE PLEA OF THE ASSESSEE AND DIRECT THE ASS ESSING OFFICER TO DELETE THE IMPUGNED DISALLOWANCE OF RS 12,71,830. THE ASSESSEE GETS THE RELIEF ACCORDINGLY. 6. GROUND NO. 5 IS THUS ALLOWED. 7. IN THE RESULT, THE ORDER DATED 10 TH MAY 2018 STANDS MODIFIED IN THE TERMS INDICATED ABOVE . ORDER PRONOUNCED UNDER RULE 34(4) OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1962, BY HAVING THE LIST OF PRONOUNCEMENTS PLACED ON THE NOTICE BOARD. SD/ - SD/ - JUSTICE P P B HATT PRAMOD KUMAR ( PRESIDENT) ( VICE - PRESIDENT) D ATED THE 12 TH DAY OF MARCH , 20 20 COPIES TO : (1) THE APPELLANT (2) THE RESPONDEN T (3) CIT (4) CIT(A) ( 5 ) DR (6) GUARD FILE BY ORDER ASSISTANT/DEPUTY REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD