NERLI URBAN CO-OP CREDIT SOCIETY,NERLI V. INCOME TAX OFFICER, NFAC, DELHI

ITA 127/PAN/2024

AI Insights

The case involves the Nerli Urban Co-op Credit Society, which appealed against the penalty imposed by the Assessing Officer following the denial of a deduction under section 80P(2)(d) of the Income Tax Act. Initially, the society filed a return declaring nil income after claiming a deduction of Rs. 11,23,320, which was disallowed upon scrutiny. The Assessing Officer subsequently levied a penalty, which was upheld by the CIT(A). The society then appealed to the Income Tax Appellate Tribunal, which found in their favor, referencing a prior decision that supported the society's claim for the deduction.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471236 (ITAT-PANAJI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 30-10-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 15-05-2024
• Other Referred Cases: ITA.No. 446/PAN/2018 A.Y.2015-16
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 250; 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI. — BEFORE SHIR PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA No. 127/PAN/2024 (A.Y: 2015-16) Nerli Urban Co-op credit | Vs. society, Nerli, Tq Hukkeri, Belgaum-591340. Karnataka. PAN/GIR No.: AACAN2378P | __ Appellant | Respondent Shri.Sachin B Nichal:AR- Ms. Rijula Uniyal. Sr.DR 30.10.2024 06.11.2024 smear / ORDER PER PAVAN KUMAR GADALE JM: Income Tax Officer, NFAC Delhi. The appeal is filed by the assesse against the order of the National Faceless Appeal Centre (NFAC), Delhi/CIT (A) passed U/sec 271(1)(c) and u/sec 250 of the Act. The assessee has. raised the grounds of appeal challenging the order of the CIT(A) sustaining the levy of penalty u/sec271(1)(c) of the Act. 2. The brief facts of the case are that, the assessee is a cooperative society and has filed the return of income for the A.Y 2015-16 on 22.09.2015 disclosing ITA No. 127/PAN/2024 Nerli Urban Co-op credit society Nerli, -2- a total income of Rs.Nil after claiming deduction u/sec 80P(2)(d) of the Act of Rs.11,23,320/- -Subsequently the case was selected for scrutiny under CASS and notice u/secl43(2) of the Act was issued. In compliance, the assessee has filed the details and submissions in support of return of income filed. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and judicial decisions and denied the claim of deduction u/sec80P2(d) of the act of Rs.11,23,320/- and assessed the total income of Rs.11,23,320/- and passed the order u/secl43(3) of the Act dated 07.12.2017. 3.Subsequently, the A.O. has_ initiated penalty proceedings u/sec 271(1)(c) of the Act and the A.O has issued show cause notice. The assesse has complied with the information and explanations vide letter dated 29-01-2022. Whereas, the AO was not satisfied with the submissions and levied a penalty of Rs.3,44,016/- and passed the order u/s 271(1)(c) of the Act dated 14-02-2029. 4. Aggrieved by the penalty order, the assessee has filed an appeal before the CIT(A). In the appellate ITA No. 127/PAN/2024 Nerli Urban Co-op credit society Nerli, «3 = proceedings, the CIT(A) has considered the grounds of appeal, finding of the proceedings but has confirmed the penalty levied by the A.O and dismissed the | assesse appeal. Aggrieved by the CIT(A) order, the assessee has filed an appeal before the Hon’ble Tribunal. 5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the A.O in levying of penalty overlooking the facts and submissions. Further the Ld.AR mentioned that in the quantum appeal, against the denial of deduction u/sec 80P2(d) of the Act, on further appeal to the Honble Tribunal, the ITAT has granted the relief to the assesse. and hence the penalty cannot be sustained. And the Ld.AR supported the submissions with the facts and placed the copy of the Honb’le Tribunal order. Per Contra, the Ld. DR relied on the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the penalty overlooking the facts, ITA No. 127/PAN/2024 Pid Urban Co-op credit society Nerli, information and submissions. The Ld.AR_ has demonstrated the copy of order of the Honble ITAT dated 7-04-2022, were the Honble Tribunal in. ITA.No. . 446/PAN/2018 A.Y.2015-16 along with other appeals has considered the judicial decisions and held that the interest income derived by a co-operative society from its deposits with the co-operative bank would be entitled for deduction U/sec 80P(2)(d) of the Act and allowed the assesse appeal. Since the addition made by the assessing officer is deleted by the Hon’ble Tribunal. The penalty levied on such addition cannot be sustained. Accordingly, we set aside the order. of the CIT(A) and direct the assessing officer to delete the penalty and we allow the grounds of appeal in favour of the assessee. 7. In the result, appeal filed by the assessee is allowed. Order pronounced in the open court on 06.11.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 06/11/2024 ITA No. 127/PAN/2024 Nerli Urban Co-op credit society Nerli, 5 araer fr Ufaferht_ 31 a/Copy of the Order forwarded to: 1. 3th / The Appellant 2. vert / The Respondent. 3. daft arene 3yrT / The CIT(A) 4. 3nrat aqea(atra) / Concerned CIT 5. fasrefa ofafafe, arene aiteia after, severe / DR, ITAT we WSS 6. més wéa / Guard file. aneengan/ BY ORDER, Heard wet //True Copy//() (Asst. Registrar) ITAT, Panaji Initial Date 1. \"| Draftdictated on! aa IE ele eg PS 8 | Draft placed before author os Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. Approved Draft comes to the PS Sr.PS/PS sete ee ee 6. | Kept for pronouncement on File sent to the Bench Clerk ea a eee Fa «| Date on which file goes to the AR Date on which file goes to the Head Clerk. Date of dispatch of Order. he eae ee ee Ley ae ee a eee Dictation Pad is enclosed "