M/s. Judicial Employees House Building Co-operative Society Limited, Mysuru V. Income-Tax Officer, Ward-2(2), Mysore

MA 219/BANG/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5622 (ITAT-BANGALORE)
• Duration Of Justice: 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-11-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 26-10-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 11-10-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC “C” BENCH : BANGALORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER MP No.219/Bang/2023 [in ITA No.108/Bang/2023] Assessment year : 2017-18 M/s. Judicial Employees House Building Cooperative Society Ltd., No.1028/D, 1 st Floor, Jayalakshmi Road, Chamarajapuram, Mysuru – 570 005. PAN : AAAAJ 2868E Vs. The Income Tax Officer, Ward 2(2), Mysore. APPLICANT RESPONDENT Applicant by : Shri Vageesh Hegde, CA Respondent by : Shri Ganesh R. Ghale, Standing Counsel for the Dept. Date of hearing : 27.10.2023 Date of Pronouncement : 06.11.2023 O R D E R By this miscellaneous petition, the assessee prays for rectification of the order of the Tribunal dated 11.4.2023 2. The ld. AR submitted that the Tribunal dismissed the appeal of the assessee on the issue of claim of deduction u/s. 80P(2)(d) of the Act on the interest received on fixed deposits from the Co-operative Bank and Nationalized Bank following the judgment of the jurisdictional High Court in the case of PCIT v. Totagars Co-operative MP No.219/Bang/2023 Page 2 of 3 Sale Society [2017] 83 taxmann.com 140 (Karnataka). The ld. AR submitted that the coordinate Bench of the Tribunal in the case of Karnataka State Co-operative Federation Ltd. v. ACIT [2021] 123 taxmann.com 399 (Bang. Trib) has held the same issue in favour of the assessee and this decision was relied during the course of hearing before the Tribunal and recorded vide para 7 of the order. The ld. AR further submitted that recently on 18.7.2023 the coordinate Bench of the Tribunal in the case of Totgars Co-op. Sale Society Ltd., Sirsi for AYs 2015-16 to 2018-19 this issue was allowed in favour of assessee. Accordingly, rectification of the order was requested. 3. Heard both the sides and perused the material on record. The issue was decided following the decision of the Hon’ble jurisdictional High Court in the case of PCIT v. Totagars Co-operative Sale Society, [2017] 83 taxmann.com 140 / 395 ITR 611 at para 23. The coordinate Bench’s order dated 18.7.2023 Totgars Co-op. Sale Society Ltd., Sirsi which is a later decision of the Tribunal after passing of the order dated 11.4.2023, therefore it cannot be relied. I note that in the case of Karnataka State Co-operative Federation Ltd. v. ACIT [2021] 123 taxmann.com 399 (Bang. Trib), the latest decision of the jurisdictional High Court reported in 395 ITR 611 has not been considered. In view of the judgment of the Hon’ble Supreme Court in CIT v. Reliance Telecom Ltd. [2021] 133 taxmann.com 41 (SC), the powers under section 254(2) of the Act are only to rectify/correct any mistake apparent from the record and the Tribunal cannot review the order. MP No.219/Bang/2023 Page 3 of 3 Therefore, the miscellaneous petition on the issue of deduction u/s. 80P(2)(d) is rejected. 4. However, at para 11 of the order, while dismissing the appeal of the assessee, it is mentioned that “the assessee is eligible for setting off of losses as per law”, which is an inadvertent mistake apparent on record, and it is modified and substituted to read as follows:- “the assessee is eligible for setting off of expenses for earning the income as per law.” 5. The miscellaneous petition is partly allowed. Pronounced in the open court on this 06 th day of November, 2023. Sd/- (LAXMI PRASAD SAHU ) ACCOUNTANT MEMBER Bangalore, Dated, the 06 th November, 2023. /Desai S Murthy / Copy to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.