ITO-21(1)(3), MUMBAI, MUMBAI v. M/s. CASA GRANDE CO-OP HSG. SOC. LTD., MUMBAI

ITA 6009/MUM/2019 | 2016-2017
Pronouncement Date: 31-03-2021 | Result: Dismissed

Appeal Details

RSA Number 600919914 RSA 2019
Assessee PAN AABCA0080A
Bench Mumbai
Appeal Number ITA 6009/MUM/2019
Duration Of Justice 1 year(s) 6 month(s) 10 day(s)
Appellant ITO-21(1)(3), MUMBAI, MUMBAI
Respondent M/s. CASA GRANDE CO-OP HSG. SOC. LTD., MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 31-03-2021
Last Hearing Date 31-03-2021
First Hearing Date 31-03-2021
Assessment Year 2016-2017
Appeal Filed On 20-09-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH MUMBAI BEFORE : SHRI MAHAVIR SINGH VICE PRESIDENT & SHRI M.BALAGANESH A CCOUNTANT M EMBER ITA NO. 6009 /MUM/ 20 19 ( ASSESSMENT YEAR : 201 6 - 1 7 ) ITO - 21(1)(3) ROOM NO. 106 1 ST FLOOR PIRAMA L CHAMBERS PAREL MUMBAI 400 012 VS. M/S. CASA GRANDE CO - OP HSG. SOC. LTD. SENAPATI BAPAT MARG LOWER PAREL MUMBAI 400 013 PAN/GIR NO. AABCA0080A (APPELLANT ) .. (RESPONDENT ) REVENUE BY MS. SHREEKALA PARDESHI ASSESSEE BY SHRI DEEPAK SHAH DATE OF HEARING 31 / 03 /202 1 DATE OF PRONOUNCEMENT 31 / 03/ 202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 6009/MUM/2019 FOR A.Y. 2016 - 17 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 33 MUMBAI I N APPEAL NO. CIT(A) - 33/RG.21/85/2018 - 19 DATED 24/07/2019 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 20/11/2018 BY THE LD. ITO - WARD 21(1)(3) MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). ITA NO . 6009/MUM/2019 M/S. CASA GRANDE CO - OP HOUSING SOCIETY LTD. 2 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS OF APPEAL WE FIND THAT THE EFFECTIVE ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING DEDUCTION U/S.80P(2)(D) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. AT THE OUTSET BOTH THE PARTIES BEFORE US FAIRLY AGREED THAT THIS ISSUE IS ALREADY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THIS TRIBUNA L FOR THE A.Y.2015 - 16 IN ITA NO.1880/MUM/2019 DATED 29/10/2020. WE FIND THAT ASSESSEE IS A CO - OPERATIVE HOUSING SOCIETY. DURING THE PERIOD RELEVANT TO YEAR UNDER APPEAL THE ASSESSEE RECEIVED INTEREST INCOME OF RS.1 86 42 143/ - BEING INTEREST ON SAVINGS AC COUNT TERM DEPOSITS AND FIXED DEPOSITS WITH CO - OPERATIVE BANKS SALE OF SCRAP MISCELLANEOUS INCOME DIVIDEND AND INTEREST FREE TAX FREE BONDS. WE FIND THAT ASSESSEE FILED ITS RETURN OF INCOME FOR THE A.Y.2016 - 17 ON 21/10/2016 DECLARING TOTAL INCOME OF RS .1 44 130/ - . THE ASSESSEE HAD CLAIMED DEDUCTION U/S.80P(2)(D) OF THE ACT WHILE FILING THE RETURN OF INCOME FOR RS 1 86 42 143/ - . THE TOTAL DEDUCTION U/S.80P(2)(D) CLAIMED BY THE ASSESSEE WAS RS.1 86 42 143/ - WAS RESTRICTED TO RS.1709/ - BY THE LD. AO WHILE COMPLETING THE ASSESSMENT. IN EFFECT IN THE SCRUTINY ASSESSMENT PROCEEDINGS THE LD. AO HELD THAT INTEREST INCOME RECEIVED BY THE ASSESSEE FROM CO - OPERATIVE BANK DOES NOT FALL IN THE EXEMPT CATEGORY AS PROVIDED U/S.80P(2)(D) OF THE ACT ALONG WITH OTHER IN COME. THE LD. CIT(A) APART FROM PLACING RELIANCE ON VARIOUS DECISIONS ALSO PLACED RELIANCE ON THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF K. SUBRAMANIAN VS. SIEMENS INDIA LTD. REPORTED IN 156 ITR 11 ACCEPT ED THE ASSESSEES CLAIM O F DEDUCTION U/S.80P(2)(D) OF THE ACT IN RESPECT OF INTEREST DERIVED FROM INVESTMENT WITH CO - OPERATIVE BANKS AND ITA NO . 6009/MUM/2019 M/S. CASA GRANDE CO - OP HOUSING SOCIETY LTD. 3 DIRECTED THE LD. AO TO ALLOW DEDUCTION OF RS.1 86 42 143/ - AS CLAIMED BY THE ASSESSEE U/S.80P(2)(D) OF THE ACT. 4. AGGRIEVED THE REVENUE IS IN APPEAL BEFORE US. 5. AS ALREADY STATED THAT THIS ISSUE IS ALREADY DECIDED IN FAVOUR OF THE ASSESSEE BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y.2015 - 16 REFERRED TO SUPRA THE RELEVANT PORTION OF THE SAID ORDER IS REPRODUCED HEREUNDER: - 3 . SHRI UODAL RA J SINGH REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE ASSESSMENT ORDER AND PRAYED FOR REVERSING THE FINDINGS OF CIT(A). THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE PROVISIONS OF SECTION 80P(2)(D) MANDATES THAT IT IS ONLY THE INTEREST O R DIVIDEND DERIVED BY CO - OPERATIVE SOCIETY FROM INVESTMENT WITH OTHER COOPERATIVE SOCIETY THAT WOULD BE EXEMPTED. IN THE PRESENT CASE THE ASSESSEE HAS MADE INVESTMENT WITH COOPERATIVE BANK. HENCE BENEFIT OF DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT WO ULD NOT BE AVAILABLE TO THE ASSESSEE. 4 . WE HAVE HEARD THE SUBMISSIONS MADE BY LEARNED DEPARTMENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF LOWER AUTHORITIES. THE ONLY ISSUE IN PRESENT APPEAL BY THE DEPARTMENT IS AGAINST ALLOWING DEDUCTION UNDER SECTIO N 80P(2)(D) OF THE ACT. THE ISSUE GIVES RISE TO THE QUESTION: WHETHER A COOPERATIVE BANK SHOULD BE CONSIDERED AS COOPERATIVE SOCIETY FOR THE PURPOSE OF SECTION 80P(2)(D) OF THE ACT? THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF PCIT VS. TOTAGARS CO - OPERA TIVE SALE SOCIETY 392 ITR 74 (KARNATAKA) HAS HELD THAT FOR THE PURPOSE OF SECTION 80P(2)(D) OF THE ACT A COOPERATIVE BANK SHOULD BE CONSIDERED AS COOPERATIVE SOCIETY. SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF SURAT VANKAR SAHAKARI SANGH LTD. VS. ACIT [2020] 421 ITR 134 (GUJARAT). 4.1 ON THE SAME ISSUE THE HON'BLE KARNATAKA HIGH COURT IN THE CASE OF PCIT VS. TOTAGARS CO - OPERATIVE SALE SOCIETY 395 ITR 611 (KARNATAKA) HAS TAKEN A CONTRARY VIEW HOLDING THAT INTEREST INCOME EARNED FROM DEPOSIT WITH THE COOPERATIVE BANK DOES NOT QUALIFY FOR DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT. IT WOULD BE RELEVANT TO MENTION HERE THAT THE HON'BLE HIGH COURT WHILE RENDERING LATER JUDGEMENT HAS NOT CONSIDERED THE EARLIER DECISION RE NDERED IN THE CASE OF TOTAGARS CO - OPERATIVE SALE SOCIETY REPORTED AS 392 ITR 74. ITA NO . 6009/MUM/2019 M/S. CASA GRANDE CO - OP HOUSING SOCIETY LTD. 4 5 . NO JUDGEMENT FROM HON'BLE JURISDICTIONAL HIGH COURT ON THE ISSUE OF ELIGIBILITY OF DEDUCTION UNDER SECTION 80P(2)(D) OF THE ACT ON INTEREST INCOME FROM COOPERATIVE BANK HAS BEEN BROUGHT TO OUR NOTICE. THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF K. SUBRAMANIAN VS. SIEMENS INDIA LTD. 156 ITR 11 HAS HELD THAT WHEN TWO CONFLICTING DECISIONS OF NON - JURISDICTIONAL HIGH COURTS ARE AVAILABLE THE VIEW WHICH IS IN FAVOUR OF THE ASSES SEE IS TO BE PREFERRED. IN THE LIGHT OF DECISIONS DISCUSSED ABOVE AND THE FACTS OF THE CASE WE FIND NO INFIRMITY IN THE ORDER OF CIT(A). HENCE THE SAME IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 6 . IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED. 5.1. RESPECTFULLY FOLLOWING THE SAME THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/03/2021 SD/ - ( MAHAVIR SINGH ) SD/ - (M.BA LAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI ; DATED 31 / 03 / 2021 KARUNA SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER ( ASSTT. REGISTRAR) ITAT MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FI LE. //TRUE COPY//