Mahaveera Credit Co-operative Society Limited, Mangaluru v. Income Tax Officer, Ward -1(3), Mangaluru

MA 18/BANG/2021 | 2015-2016
Pronouncement Date: 23-03-2021 | Result: Allowed

Appeal Details

RSA Number 1821124 RSA 2021
Assessee PAN AAEAM3398Q
Bench Bangalore
Appeal Number MA 18/BANG/2021
Duration Of Justice 1 month(s) 12 day(s)
Appellant Mahaveera Credit Co-operative Society Limited, Mangaluru
Respondent Income Tax Officer, Ward -1(3), Mangaluru
Appeal Type Miscellaneous Application
Pronouncement Date 23-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 23-03-2021
Last Hearing Date 05-03-2021
First Hearing Date 05-03-2021
Assessment Year 2015-2016
Appeal Filed On 11-02-2021
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C SMC BENCH : BANGALORE SHRI B.R BASKARAN ACCOUNTANT MEMBER SMT. BEENA PILLAI JUDICIAL MEMBER M.P NO.18 & 19/BANG/2021 (ITA NO.282 & 283/BANG/2020) ASSESSMENT YEAR : 2015-16 & 2016-17 MAHAVEERA CREDIT CO-OP. SOCIETY LTD. THAKSHILA BUILDING BALLAL BAGH MANGALURU-575 003. PAN AAEAM 3398 Q VS. THE INCOME-TAX OFFICER WARD-1(3) MANGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI MAHESH R UPPIN ADVOCATE RESPONDENT BY : SMT. R PREMI JCIT DATE OF HEARING : 12-03-2021 DATE OF PRONOUNCEMENT : 23-03-2021 ORDER PER BEENA PILLAI JUDICIAL MEMBER PRESENT MISCELLANEOUS PETITION IS FILED BY ASSESSEE IN ORDER DATED 1/8/2020 PASSED BY THIS TRIBUNAL FOR ASSESSMENT YEARS 2015-16 AND 2016-17. 2. IT HAS BEEN SUBMITTED BY THE LD.AR THAT THE ASS ESSEE IS UNABLE TO COMPLY WITH THE DIRECTION IN PARA 10 O F THE IMPUGNED ORDER I.E TO PRODUCE CERTIFICATE FROM RBI . HE SUBMITTED THAT RBI CANNOT ADJUDICATE WHETHER ASSESS EE IS A PAGE 2 OF 5 M.P NO.18 & 19/BANG/2021 CO-OPERATIVE BANK OR CO-OPERATIVE SOCIETY AS OBSER VED BY ( HONBLE KARNATAKA HIGH COURT) IN WP NO.45832/2012 VIDE ORDER DATED 25/9/2013. THE LD.AR PLACED COPY OF T HE SAID ORDER OF ( HONBLE KARNATAKA HIGH COURT ) BEFORE US. THE LD.AR SUBMITTED THAT THE ISSUE REGARDING DEDUCTION CLAIMED BY ASSESEE U/S 80P(2)(A)(I) HAS BEEN REMANDED TO TH E LD.AO FOR VERIFICATION IN ACCORDANCE WITH DECISION OF ( HONBLE SUPREME COURT) IN CASE OF (CITIZEN CO-OPERATIVE SOCIETY LTD. ) REPORTED IN (2017) 84 TAXMAN.COM 114). 3. HE THUS SUBMITTED THAT AS ASSESSEE IS UNABLE TO PRODUCE THE CERTIFICATE FROM RBI THERE WILL BE GRO SS IN JUSTICES CAUSED TO ASSESSEE. 4. THE LD.DR RELIED ON OBSERVATIONS IN THE IMPUGNED ORDER. 5. WE HAVE PERUSED THE RECORD AND THE SUBMISSIONS B Y LD.AR. 6. ASSESSEES MAIN GRIEVANCE IS THAT IT IS UNABLE T O PRODUCE CERTIFICATE FROM RBI THAT ASSESSEE DOES NOT POSSESS LICENSE FROM IT FOR DOING BANKING BUSINESS AND FUR THER THAT BUSINESS CARRIED BY ASSESEE IS NOT AKIN TO BUSINESS OF A CO- OPERATIVE BANK. 7. ON PERUSAL OF DECISION OF (HONBLE SUPREME COURT) IN CASE OF ( CITIZEN CO-OPERATIVE SOCIETY LTD (SUPRA) ) THE LD.AO HAS TO VERIFY THE NATURE OF INCOME WHICH IS CLAIMED AS EXEMPT AND ALSO TEST THE PRINCIPLE OF MUTUALITY IN RESPECT OF SUCH INCOME TO BE ELIGIBLE FOR EXEMPTION U/S 80(P) (2)(A). WE NOTE THAT EVEN IF ASSESSEE DO NOT OBTAIN THE RBI C ERTIFICATE PAGE 3 OF 5 M.P NO.18 & 19/BANG/2021 AS DIRECTED IN PARA 10 OF THE IMPUGNED ORDER THE LD.AO CAN VERIFY AND ASCERTAIN THE NATURE BY EXAMINING THE FA CTS OF PRESENT ASSESSEE IN THE LIGHT OF VARIOUS DECISIONS BY HONBLE SUPREME COURT. HOWEVER IN ORDER TO REDUCE THE HAR DSHIP CAUSED TO THE ASSESSEE HENCEFORTH PARA 10 OF THE I MPUGNED ORDER DATED 1/8/2020 SHALL BE READ AS UNDER :- 10. THE GRIEVANCE OF ASSESSEE IS THAT IN ITS CASE TEST OF MUTUALITY IS SATISFIED HOWEVER LD.CIT(A) DID N OT SPELL OUT AS TO HOW THE SAID TEST FAILS. WE ARE OF THE VI EW THAT SUCH GRIEVANCE OF THE ASSESSEE WOULD BE ADDRESSED B Y SETTING ASIDE THE ISSUE OF DEDUCTION U/S.80P(2)(A)( I) OF THE ACT TO LD.AO FOR CONSIDERATION AFRESH. EVEN THE CLA IM OF THE ASSESSEE FOR DEDUCTION REQUIRES TO BE EXAMINED UNDE R THE FIRST PART OF SEC.80P(2)(A)(I) OF THE ACT. HON'BLE SUPREME COURT IN CASE OF CITIZEN CO- OPERATIVE SOCIETY LTD. (SUPRA) HAS ALSO HELD THAT IT IS ALSO IMPORTANT TO ASCERTA IN AS TO WHAT IS THE NATURE OF INCOME WHICH IS CLAIMED AS EX EMPT AND AS TO HOW THE PRINCIPLE OF MUTUALITY IS NOT VIO LATED IN RESPECT OF SUCH INCOME. AN EXAMINATION OF : (I) THE MEMORANDUM OF ASSOCIATION THE ARTICLES OF ASSOCIAT ION (II) THE BYELAWS AND OTHER DOCUMENTS EXPLAINING THE RULE S AND REGULATIONS OF THE SOCIETY IS NECESSARY SO AS TO C LEARLY UNDERSTAND THE PURPOSE AND THE NATURE OF BUSINESS D ONE BY IT. AN EXAMINATION OF THE FACTS IN LIGHT OF DISC USSION CITED BY LD.CIT(A) AS WELL AS DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF TUMKUR (SUPRA) IS T O BE CARRIED OUT. NEEDLESS TO SAY THAT PROPER OPPORTUNI TY OF PAGE 4 OF 5 M.P NO.18 & 19/BANG/2021 BEING HEARD IS TO BE GRANTED TO ASSESSEE IN ACCORDA NCE WITH LAW. ACCORDINGLY M.P FILED BY ASSESSEE STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD MAR 2021. SD/- SD/- (B.R BASKARAN) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE DATED THE 23 RD MAR 2021 /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL. BANGALORE PAGE 5 OF 5 M.P NO.18 & 19/BANG/2021 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -03-2021 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -03-2021 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -03-2021 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -03-2021 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -03-2021 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -03-2021 SR.PS 8. IF NOT UPLOADED FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -03-2021 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS