M/s Karnataka State Government House Building Co-operative Society Ltd , Bangalore V. Income TAx Officer Ward-3(2)(2), Bangalore

SA 50/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6184 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 13-02-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: C SANDEEP

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P BOAZ , ACCOUNTANT MEMBER S.P. NOS.50 TO 52/BANG/2019 (IN IT A NO S . 1500, 1501 /BANG/201 8 AND 77/BANG/2019 ) ASSESSMENT YEAR S : 2009 - 10, 2013 - 14, 20 1 5 - 1 6 M/S. KARNATAKA STATE GOVERNMENT HOUSE BUILDING CO-OPERATIVE SOCIETY LTD., NO.142, VELLAHALU NILAYAM, 8 TH MAIN ROAD, 18 TH CROSS, VIJAYANAGAR, BANGALORE 560 040. PAN : AABAK 1360 M VS. THE INCOME TAX OFFICER, WARD - 3(2)(2), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI. C. SANDEEP, CA REVENUE BY : SHRI. R. N. SIDDAPPAJI, ADDL. CIT DATE OF HEARING : 22 . 0 2 .201 9 DATE OF PRONOUNCEMENT : 22 . 02 .201 9 O R D E R PER JASON P BOAZ, ACCOUNTANT MEMBER THESE 3 STAY PETITIONS (SPS) ARE FILED IN RESPECT OF THE ASSESSEES APPEALS IN ITA NOS.1500, 1501/BANG/2018 AND ITA NO.77/BANG/2019 FOR ASSESSMENT YEARS 2009-10, 2013-14 AND 2015-16. 2. BRIEFLY STATED, FACTS OF THE MATTER ARE AS UNDER: S.P. NO. NOS.50 TO 52/BANG/2019 (IN ITA NOS.1500, 1501/BANG/2018 AND 77/BANG/2019) PAGE 2 OF 4 2.1 THE ASSESSEE IS A CO-OPERATIVE HOUSING SOCIETY. PURSUANT TO THE ORDERS OF ASSESSMENT FOR ASSESSMENT YEARS 2009-10, 2013-14 AND 2015-16, THE AO RAISED DEMAND OF TAXES PAYABLE TOTALLY AMOUNTING TO RS.73,00,057/-. FROM THE DETAILS ON RECORD, IT APPEARS THAT THE AO VIDE NOTICE ISSUED UNDER SECTION 226(3) DATED 05.02.2019 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) APPROPRIATED FROM THE ASSESSEES CURRENT ACCOUNT, RFDS AND FDS AMOUNT TOTALING TO RS.16,72,692/-, THEREBY LEAVING A BALANCE OUTSTANDING DEMAND OF RS.56,25,057/- PAYABLE BY THE ASSESSEE. 3. BEFORE US, THE LEARNED AR OF THE ASSESSEE SUBMITS THAT THE ASSESSEE HAS A STRONG PRIMA FACIE CASE WITH REGARD TO ITS CLAIM FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT TO THE EXTENT OF INTEREST EARNED FROM THE INVESTMENTS MADE IN CO-OPERATIVE BANKS AND OTHER NATIONALIZED BANKS. IT IS CONTENDED THAT THE ASSESSEE HAS A GOOD CASE ON MERITS IN VIEW OF VARIOUS DECISIONS OF THE TRIBUNAL WHICH HAVE HELD THAT THE INTEREST EARNED BY A CO-OPERATIVE SOCIETY FROM THE DEPOSITS IN CO-OPERATIVE BANKS IS ELIGIBLE FOR DEDUCTION UNDER SECTION 80-P(2)(D) OF THE ACT. IT IS ALSO SUBMITTED THAT DUE TO THE ATTACHMENT OF ITS BANK ACCOUNTS BY THE AO, THE PAYMENT OF THE BALANCE TAX OUTSTANDING WILL CAUSE UNDUE FINANCIAL HARDSHIP TO THE OPERATIONS OF THE ASSESSEE AND IRREPARABLE DAMAGE TO THE BUSINESS SINCE THE FINANCIAL CONDITION OF THE ASSESSEE IS NOT GOOD. IT IS PLEADED THAT IN VIEW OF THE ABOVE, THE TRIBUNAL MAY BE PLEASED TO GRANT THE ASSESSEES PLEA FOR STAY ON COLLECTION OF THE OUTSTANDING DEMAND OF RS.56,25,057/- AS IT IS PRESENTLY NOT POSSIBLE TO PAY THE SAME. 4. PER CONTRA, THE LEARNED DR VEHEMENTLY OPPOSED THE ASSESSEES PLEA FOR GRANT OF STAY ON COLLECTION OF THE OUTSTANDING DEMAND. IT WAS SUBMITTED THAT THE ASSESSEE BE DIRECTED TO PAY THE OUTSTANDING DEMAND IMMEDIATELY. 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY PERUSED THE MATERIAL ON RECORD. AS PER THE RECORD BEFORE US, IT IS SEEN THAT OUT OF A TOTAL DEMAND OF RS.73,00,057/-, AN AMOUNT OF RS.16,75,000/- HAS BEEN COLLECTED BY THE AO THROUGH