Income Tax Officer Ward-3(4), Hubli V. BSNL Employees o-op Credit Society Ltd , Hubli

ITA 981/BANG/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5642 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 19-09-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Assessee Lawyers: RAVISHANKAR S V
• Keywords: Tax effect; Co-operative Credit Society
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I TA NO. 981 /BANG/201 7 ASSESSMENT YEAR : 20 1 4 - 1 5 THE INCOME TAX OFFICER, WARD 3 (4), HUBBALLI. VS. M/S. THE BSNL EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD., NEAR DESAI CROSS, PINTO ROAD, HUBBALLI. PAN: AAAAT7546B APPELLANT RESPONDENT ASSESSEE BY : SHRI RAVISHANKAR S.V., ADVOCATE REVENUE BY : SMT. R. PREMI, JCIT (DR) DATE OF HEARING : 19 .0 9 .2019 DATE OF PRONOUNCEMENT : 27 .0 9 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE WHICH IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) -HUBLI DATED 28.02.2017 FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. GROUNDS OF APPEAL TAX EFFECT RELATING TO EACH GROUND OF APPEAL 1. DEDUCTION U/S 80P(2)(A)(I) ALLOWED BY CIT(A) THOUGH THE CASE COMES UNDER THE PURVIEW OF SECTION 2(24) (VIIA) AND SECTION 80 P ( 4) WEF 01/04/2007 RS. 7,19,660/- TOTAL TAX EFFECT (SEE NOTE BELOW) RS. 7,19,660/ - 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT IN THE PRESENT CASE, THE TAX EFFECT IS BELOW RS. 50 LAKHS AND THEREFORE, THE APPEAL OF THE ITA NO. 981/BANG/2017 PAGE 2 OF 2 REVENUE IS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT AS PER THE RECENT CBDT INSTRUCTIONS. HE FURTHER POINTED OUT THAT THE RETURN OF INCOME AS PER THE ASSESSMENT ORDER IS NIL AFTER CLAIMING DEDUCTION U/S. 80P OF THE IT ACT OF RS. 23,39,144/- AND THE AO HAS ASSESSED THE INCOME AT RS. 24,11,516/- AND THEREFORE, THE TAX EFFECT IN THE APPEAL OF THE REVENUE IS BELOW RS. 50 LAKHS. IN REPLY, THE LD. DR OF REVENUE HAD NOTHING TO SAY. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT DEFINITELY, THE TAX EFFECT IN THE PRESENT CASE IS BELOW RS. 50 LAKHS. IN FACT, IN THE GROUNDS OF APPEAL ITSELF, THE TAX EFFECT IS WORKED OUT AT RS. 79,660/-. HENCE, THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE AS PER THE RECENT CBDT INSTRUCTIONS BECAUSE OF LOW TAX EFFECT. THEREFORE, WE DISMISS THIS APPEAL OF THE REVENUE BECAUSE OF LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (PAVAN KUMAR GADALE) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 27 TH SEPTEMBER, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.