Nishpaksh Co-operative T & C Society Ltd, New Delhi V. ITO WARD - 49(5), New Delhi

MA 66/DEL/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3162 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-05-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 07-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER M.A. No.66/Del/2022 [Arising out of ITA No.7137/Del/2019] Assessment Year: 2015-16 Nishpaksh Co-operative T & C Society Ltd., Wz-43D/1, Possangipur, Janakpuri, New Delhi Vs. Income Tax Officer, Ward-49(5), New Delhi PAN :AAAAN7431M (Appellant) (Respondent) ORDER Captioned application has been filed by the assessee seeking rectification of order dated 28.02.2022 passed in ITA No. 7137/Del/2019. 2. I have heard Sh. Manoj Kumar, learned Authorized Representative of the assessee and Ms. Garia Sharma, learned Departmental Representative. 3. As could be seen from the grounds raised in the corresponding appeal, the dispute between the assessee and the Revenue was in respect of claim of deduction under section Appellant by Sh. Manoj Kumar, CA Respondent by Ms. Garia Sharma, Sr. DR Date of hearing 27.05.2022 Date of pronouncement 22.08.2022 M.A. No.66/Del/2022 2 | P a g e 80P(2)(i)(a) of the Income-tax Act, 1961 (for short ‘the Act’). The departmental authorities had disallowed assessee’s claim of deduction under section 80P(2)(i)(a) of the Act on the reasoning that the interest income earned by the assessee is not related to the business activity of the assessee. While considering the issue in the appeal filed by the assessee, the Tribunal in paragraph 8 of the order has given a categorical finding that the interest income earned by the assessee is to be assessed as income under the head ‘business income’. Therefore, as a natural corollary, assessee’s claim of deduction under section 80P(2)(i)(a) of the Act has to be allowed. However, inadvertently, in paragraph 9, the Tribunal had directed the Assessing Officer to allow assessee’s claim of deduction under section 80P(2)(i)(a) after verifying the source of interest income, whether it was earned from other cooperative banks or not. In my view, the aforesaid observations of the Tribunal is not relevant for the purpose of determining assessee’s claim of deduction under section 80P(2)(i)(a) of the Act. Therefore, to that extent, there is a mistake apparent on the face of record in terms with section 254 of the Act, which needs rectification. Accordingly, I rectify the order as under: M.A. No.66/Del/2022 3 | P a g e “Paragraph 9 of the order dated 28.02.2022 passed in ITA No. 7137/Del/2019 should be substituted with the following paragraph” “9. In view of the observations made above, the Assessing Officer is directed to allow assessee’s claim of deduction under section 80P(2)(i)(a) of the Act. In view of the decision above, ground no. 4 has become infructuous.” 4. The order dated 28.02.2022 passed in ITA No. 7137/Del/2019 is modified to this extent. This order shall be read as part of order dated 28.02.2022 passed in ITA No. 7137/Del/2019. 5. In the result, the miscellaneous application is allowed, as indicated above . Order pronounced in the open court on 22 nd August, 2022 Sd/- (SAKTIJIT DEY) JUDICIAL MEMBER Dated: 22 nd August, 2022. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi