Income Tax Officer, Bangalore v. M/s Kammavari Credit Co-operative Society Limited, Bangalore

ITA 2129/BANG/2016 | 2012-2013
Pronouncement Date: 27-11-2017 | Result: Allowed

Appeal Details

RSA Number 212921114 RSA 2016
Assessee PAN AAAAK2670H
Bench Bangalore
Appeal Number ITA 2129/BANG/2016
Duration Of Justice 11 month(s) 22 day(s)
Appellant Income Tax Officer, Bangalore
Respondent M/s Kammavari Credit Co-operative Society Limited, Bangalore
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2017
Appeal Filed By Department
Tags No record found
Order Result Allowed
Bench Allotted B
Tribunal Order Date 27-11-2017
Assessment Year 2012-2013
Appeal Filed On 05-12-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI INTURI RAMA RAO ACCOUNTANT MEMBER ITA NO.2129/BANG/2016 ASSESSMENT YEAR : 2012-13 INCOME TAX OFFICER WARD -7(2)(4) BENGALURU. VS. M/S. KAMMAVARI CREDIT CO-OPERATIVE SOCIETY LTD. NO.1 22 ND MAIN JAYANAGAR HSBC LAYOUT PADMANABHANAGAR BENGALURU 560 070. PAN : AAAAK 2670 H APPELLANT RESPONDENT REVENUE BY : SMT. PADMA MEENAKSHI JCIT ASSESSEE BY : NONE DATE OF HEARING : 16 . 11 .201 7 DATE OF PRONOUNCEMENT : 27.11.2017 O R D E R PER SUNIL KUMAR YADAV JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF CIT(A) INTERALIA ON THE FOLLOWING GROUNDS: 1. THE ORDER OF THE LEARNED CIT(A) IS OPPOSED TO LAW A ND FACTS OF THE CASE. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) WAS JUSTIFIED IN LAW IN ALLOWING DEDUCTION U/S.80P(2)(A)(I) OF THE ACT TO T HE CO-OPERATIVE SOCIETY CARRYING ON THE BUSINESS OF BAKING INSPITE OF THE FACT THAT CLAUSE NO.(4) OF SECTION 80P INSERTED WITH EFFECT FROM 01. 04.2007 CLEARLY BARS THE CO-OPERATI VE SOCIETY FROM THE ABOVE DEDUCTION OTHER THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK'. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE C1T(A) WAS JUSTIFIED IN LAW IN HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80P(2) IN RESPECT OF INTEREST EARNED FROM INVESTMENTS BY NOT TAKING INTO CONSIDERATION THE JUDGEMENT OF THE HON'BLE HIGH COURT OF KARNATAKA IN THE CASE OF M/S. THE TOTAGAR CO-OPERATIVE SALE ITA NO. 2129/BANG/2016 PAGE 2 OF 3 SOCIETY LTD (2010) 188 TAXMANN 282 '? 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT TH E TIME OF HEARING IT IS PRAYED THAT THE ORDER OF THE CIT(A) IN SO FOR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD ALTER AMEND AND /OR DELETE ANY OF THE GROUNDS MENTIONED ABOVE. 2. THIS APPEAL CAME UP FOR HEARING ON 16.11.17 BUT NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. WE THEREFORE H AD NO OPTION BUT TO HEAR THE APPEAL EX- PARTE QUA THE ASSESSEE. ACCORDINGLY THE REVENUE W AS HEARD. 3. DURING THE COURSE OF HEARING THE LEARNED DR INVITE D OUR ATTENTION TO THE FACT THAT NOW THE HONBLE SUPREME COURT HAS RESOLVED THE CONTROVE RSY ON THE ISSUE AND RESTORED THE MATTER TO THE AO WITH CERTAIN DIRECTIONS IN THE CASE OF CI TIZEN CO-OPERATIVE SOCIETY LIMITED VS. ASSISTANT COMMISSIONER OF INCOME TAX IN CIVIL APPEA L NO.10245/2017 DISPOSED OF ON 08.08.2017. FOLLOWING THE JUDGMENT OF HONBLE SUPR EME COURT THE JURISDICTIONAL HIGH COURT HAS ALSO RESTORED THE MATTER TO THE AO FOR R EADJUDICATION IN THE LIGHT OF THE DIRECTIONS GIVEN BY THE HONBLE SUPREME COURT WHILE ADJUDICATI NG THE ISSUE IN THE CASE OF PR.CIT VS. VIJAY SOUHARDA CREDIT SAHAKARI LTD. THEREFORE IN THE INTEREST OF JUSTICE THE MATTER SHOULD BE RESTORED BACK TO THE AO FOR READJUDICATION OF TH E ISSUE AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUB MITTED THAT CIT(A) HAS EXAMINED ALL THESE ASPECTS THEREFORE THERE IS NO NEED TO RESTOR E THE ISSUE TO THE AO. 5. HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWE R AUTHORITIES AND THE JUDGMENTS OF THE APEX COURT AND HIGH COURT WE ARE OF THE VIEW T HAT SINCE IDENTICAL ISSUE WAS RESTORED BACK BY THE JURISDICTIONAL HIGH COURT AND THE SUPRE ME COURT FOR READJUDICATION IN THE LIGHT OF DIRECTION GIVEN BY THE APEX COURT THIS ISSUE SH OULD ALSO GO BACK TO THE AO FOR READJUDICATION. ACCORDINGLY WE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO ITA NO. 2129/BANG/2016 PAGE 3 OF 3 THE FILE OF THE AO FOR READJUDICATION OF THE ISSUE IN TERMS OF THE DIRECTIONS GIVEN BY THE APEX COURT IN THE CASE OF CITIZEN CO-OPERATIVE SOCIETY L IMITED (SUPRA). 6. IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEMBER 2017. SD/- SD/- (INTURI RAMA RAO) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDI CIAL MEMBER PLACE : BANGALORE DATED : 27/11/2017 /NS/* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-II BANGALORE 4 CIT 5 DR ITAT BANGALORE. 6 GUARD FILE BY ORDER SR. PRIVATE SECRETARY ITAT BANGALORE.