Tribeni Tissues Co Operative Credit Society Ltd., Hooghly V. I.T.O.,Ward-24(3), Hooghly

MA 85/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2855 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 16-09-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Deduction Disallowance
• Section: 254(2)

Judgement Text

M.A. 85/KOL/2020 (IN ITA NO. 2 477/KOL/2019) ASSESSM ENT YEAR: 2016-2017 TRIBENI TISSUES COOPERATIVE CREDIT SOCIETY LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER M.A. NO. 85/KOL/2019 (IN I.T.A. NO. 2477/KOL/2019) ASSESSMENT YEAR: 2016-2017 TRIBENI TISSAUES COOPERATIVE CREDIT SOCIETY LIMTIED ,............. APPLICANT VILL. & P.O. CHANDRAHATI, DIST. HOOGHLY-712504 [PAN:AADAT5788J] -VS.- INCOME TAX OFFICER,................................ .................................... RESPONDENT WARD-24(3), HOOGHLY, AAYAKAR BHAWAN, G.T. ROAD, P.O. CHINSURAH, HOOGHLY-712101 APPEARANCES BY: SHRI J.P. KHAITAN, A.R., APPEARED ON BEHALF OF THE ASSESSEE SHRI JAYANTA KHANRA, JCIT , APPEARED ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : NOVEMBER 20, 2020 DATE OF PRONOUNCING THE ORDER : NOVEMBER 25, 2020 O R D E R PER SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER :- THIS ASSESSEES MISCELLANEOUS APPLICATION FILED UN DER SECTION 254(2) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT SEEKS TO RE- CALL/RECTIFY THE TRIBUNALS ORDER DATED 14.02.2020 UPHOLDING BOTH THE LOWER AUTHORITIES ACTION DISALLOWING ITS SECTION 8 0P(2)(A)(I) DEDUCTION CLAIM OF RS.17,81,003/-. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. MR. KHAITANS FIRST AND FOREMOST GRIEVANCE IN TH E INSTANT MISCELLANEOUS APPLICATION IS THAT HE COULD NOT REAC H THE TRIBUNAL DURING THE COURSE OF HEARING ON 12.01.2020 IN THE MAIN APP EAL AND THEREFORE, HIS M.A. 85/KOL/2020 (IN ITA NO. 2 477/KOL/2019) ASSESSM ENT YEAR: 2016-2017 TRIBENI TISSUES COOPERATIVE CREDIT SOCIETY LIMITED 2 NON-APPEARANCE WAS NEITHER INTENTIONAL NOR DELIBERA TE. THE REVENUE HAS NOT DISPUTED ALL THESE FACTUAL AVERMENT. I THEREFOR E RE-CALL THE TRIBUNALS ORDER DATED 14.02.2020. THE ASSESSEES MISCELLANEOU S APPLICATION NO. 85/KOL/2020 IS ACCEPTED. 3. I NOW PROCEED TO DEAL WITH THE ABOVE SOLE ISSUE OF SECTION 80P(2)(A)(I) DEDUCTION DISALLOWANCE AMOUNTING TO RS .17,81,003/- MADE IN BOTH THE LOWER PROCEEDINGS AS UPHELD IN THE TRIB UNALS ORDER FOR THE REASON THAT THE SAME REPRESENTS THE ASSESSEES INTE REST INCOME DERIVED FROM INVESTMENTS MADE IN NATIONALIZED BANKS. 4. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE DURING THE COURSE OF HEARING IS THAT BOTH THE LOWER AUTHORITIES HAVE ERR ED IN LAW AS WELL AS ON FACTS IN TREATING THE ASSESSEES ENTIRE INTEREST IN COME OF RS.17,81,003/- AS DERIVED FROM NATIONALIZED BANKS INSPITE OF THE FACT THAT IT COMPRISED OF INTEREST INCOME OF RS.14,43,241/- RECEIVED FROM COO PERATIVE SOCIETIES ENGAGED IN THE BANKING BUSINESS COVERED U/S. 80P(2) (D) AND THE BALANCE AMOUNT OF RS.3,37,762/- ONLY REPRESENTED THE AMOUNT COMING FROM NATIONALIZED BANKS. MR. KHAITAN NEXT QUOTED HONBLE GUJRAT HIGH COURTS DECISION IN TAX APPEAL NO. 473 OF 2014 CIT VS.- SA BARKANTHA DIST. COOPERATIVE MILK PRODUCERS UNION THAT A COOPERATIV E SOCIETYS INTEREST INCOME DERIVED FROM YET ANOTHER COOPERATIVE SOCIETY ENGAGED IN BANKING BUSINESS IS ENTITLED FOR SEC. 80P(2)(D) RELIEF. THE RE IS NO REBUTTAL COMING FROM THE DEPARTMENTAL SIDE. I THEREFORE RECALL THE TRIBUNALS ORDER DATED 14.02.2020 AS SUFFERING FROM APPARENT ERROR IN THE FOREGOING TERMS FOR HAVING TREATED THE ENTIRE INTEREST INCOME OF RS.17, 81,003/- AS DERIVED FROM NATIONALIZED BANKS AND DIRECT THE ASSESSING OF FICER TO RESTRICT THE ABOVE STATED DISALLOWANCE TO THE EXTENT OF RS.3,37, 762/- ONLY ON NETTING BASIS. THE ASSESSEE THUS GETS PART RELIEF OF RS.14, 43,241/- IN THE ABOVE TERMS. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. THE ASSESSEES MAIN APPEAL ITA NO. 2477/KOL/2019 IS PARTLY ALLOWED. M.A. 85/KOL/2020 (IN ITA NO. 2 477/KOL/2019) ASSESSM ENT YEAR: 2016-2017 TRIBENI TISSUES COOPERATIVE CREDIT SOCIETY LIMITED 3 5. THE ASSESSEES MISCELLANEOUS APPLICATION NO. 85/ KOL/2020 IS ALLOWED AND ITS MAIN APPEAL ITA NO. 2477/KOL/2019 I S PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON NOVEMBER 25, 2020. SD/- (SATBEER SINGH GODARA) JUDICIAL MEMBER KOLKATA, THE 25 TH DAY OF NOVEMBER, 2020 COPIES TO : (1) TRIBENI TISSAUES COOPERATIVE CREDIT SOCIETY LIMIT ED, VILL. & P.O. CHANDRAHATI, DIST. HOOGHLY-712504 (2) INCOME TAX OFFICER, WARD-24(3), HOOGHLY, AAYAKAR BHAWAN, G.T. ROAD, P.O. CHINSURAH, HOOGHLY-712101 (3) COMMISSIONER OF INCOME TAX (APPEALS)-6. KOLKATA ; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.