ITO, Kolhapur v. Shri Ravalnath Gramin Bigar Sheti Sah. Pat. Sans., Kolhapur

ITA 640/PUN/2010 | 2004-2005
Pronouncement Date: 08-10-2010 | Result: Dismissed

Appeal Details

RSA Number 64024514 RSA 2010
Bench Pune
Appeal Number ITA 640/PUN/2010
Duration Of Justice 5 month(s) 15 day(s)
Appellant ITO, Kolhapur
Respondent Shri Ravalnath Gramin Bigar Sheti Sah. Pat. Sans., Kolhapur
Appeal Type Income Tax Appeal
Pronouncement Date 08-10-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 08-10-2010
Assessment Year 2004-2005
Appeal Filed On 23-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH - A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAB JUDICIAL MEMBER . ! ! ! ! /AND ' '' ' $ $ $ $ % SHRI D.KARUNAKARA RAO ACCOUNTANT MEMBER. !& !& !& !& / ITA NO. 640/PUNE/2010 '( )* + ASSESSMENT YEAR 2004-05 INCOME-TAX OFFICER WARD 1(4) KOLHAPUR. SHRI RAVALNATH GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA CHANDDGAD DIST.KOLHAPUR. - / APPELLANT . ' . - VERSUS - /0 -+ RESPONDENT - 2+ FOR THE APPELLANT: + SHRI ABHAY DAMLE DR /0 - 2 + FOR THE RESPONDENT : NONE / ORDER ' '' ' $ $ $ $ % SHRI D.KARUNAKARA RAO ACCOUNTANT MEMBER . THE REVENUE HAS FILED THIS APPEAL AGAINST ORDER DT.25.1.2010 OF THE COMMISSIONER OF I NCOME-TAX (APPEALS) KOLHAPUR FOR THE ASSESSMENT YEAR 2004-05. THE EFFECTIVE GROU ND RAISED IS GROUND NO.1 WHICH READS AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LEARNED CIT(A) HAS ERRED IN ALLOWING THE ASSESS EES CLAIM FOR DEDUCTION UNDER SECTION 80P(2)(A)(I) AS THE CONTRIB UTION COLLECTED FROM EMPLOYEES AND NOT PAID TO GOVERNMENT ACCOUNT W ITHIN THE TIME ALLOWED IS NOT A BUSINESS INCOME AND DEDUCTION UND ER SECTION 80P IS NOT ADMISSIBLE. 2. HEARD BOTH THE PARTIES AND PERUSED THE IMPUGNED ORDERS OF THE LOWER AUTHORITIES. THE ASSESSEE IS A CREDIT CO-OPERATIVE SOCIETY REGISTERED UNDER THE MAHARASHTRA CO-OP. SOCIETIES ACT 1960. IN THE ORDER PASSED U/S.154 OF THE INCOME-TAX ACT 1961 THE ASSESSING OFFICER DISALLOWED U/S.43B OF THE ACT AND MADE ADDITION OF 1 39 584 TO THE TOTAL INCOME BEING THE PROVIDENT F UND WHICH WERE PAID AFTER DUE DATE AND ALSO DENIED DEDUCTION U/S.80P OF THE ACT TO THA T EXTENT. IN APPEAL THE LEARNED CIT(A) OBSERVED THAT THE ASSESSEE ITSELF ADDED BACK 1 39 584 TO THE NET PROFIT AS PER P & L ACCOUNT TO ARRIVE AT GROSS TOTAL INCOME AND CLA IMED DEDUCTION UNDER SECTION 80P(2)(A). IN VIEW OF THIS THE LEARNED CIT(A) HELD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION OF THIS AMOUNT U/S.80P(2)(A)(I). HE REFER RED TO THE DECISION OF ITAT PUNE BENCH IN THE CASE OF SHRI MAHAVEER NSPS LTD V. DCIT (74 TTJ 793) RELIED ON BY THE ASSESSEE BEFORE HIM WHEREIN IT IS HELD THAT EVEN A DDITIONS U/S.68 CAN BE ALLOWED AS DEDUCTION U/S.80P(2)(A)(I) OF THE ACT. CONSIDERING THE UNDISPUTED FACT THAT THE ASSESSEE HAS ALREADY ADDED BACK 1 39 584 TO THE NET PROFI T AS PER P & L ACCOUNT TO ARRIVE AT GROSS TOTAL INCOME WE ARE OF THE CONSIDERED VIEW T HAT THE LEARNED CIT(A) IS JUSTIFIED IN !& / ITA NO. 640/PUNE/2010 2 HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION ON THIS AMOUNT U/S.80P(2)(A)(I) OF THE ACT. WE THEREFORE UPHELD THE IMPUGNED ORDER OF TH E LEARNED CIT(A) AND REJECT THE GROUND TAKEN BY THE REVENUE IN THIS REGARD. 3. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. 3 % 4 ' 5 3 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 08/10 /2010 SD/- SD/- (SHAILENDRA KUMAR YADAB) JUDICIAL MEMBER ( ' '' ' $ $ $ $ ) % D. KARUNAKARA RAO ACCOUNTANT MEMBER . 6% 6% 6% 6% DATE: 08/10/2010 /68)69. COPY OF THE ORDER FORWARDED TO : : - / THE APPELLANT : INCOME-TAX OFFICER WARD 1(4) KOLHAPUR. ; /0 - / THE RESPONDENT: SHRI RAVALNATH GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA CHANDDGAD DIST.KOLHAPUR. < '+ THE CIT = ' + THE CIT(A) > ?5/6'+ DR PUNE @ 5'ABC /GUARD FILE 06/6+ TRUE COPY '+ BY ORDER 3!D / ASST. REGISTRAR . ( 3FG' H J'DL ) (H.K.PADHEE SR.PRIVATE SECRETARY)