PRINCIPAL COMMISSIONER OF vs. M/S.NLC EMPLOYEES CO-OP THRI

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TCA/1028/2019HC Madras16 December 2019Bench: Hon`ble Mr Justice N. KIRUBAKARAN5 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeals filed by the Revenue. The Court noted that the issues raised in these appeals were already covered by a previous judgment of the same Court in the assessee's own case, specifically in TCA.Nos.786 to 789 of 2015, dated 10.08.2016. In that prior judgment, the High Court had upheld the order of the Income Tax Appellate Tribunal. Therefore, following the precedent set by its own earlier decision, the Court found no reason to interfere with the ITAT's order. The appeals were dismissed on the grounds that the matter was already decided against the Revenue. No costs were awarded. The connected miscellaneous petitions were also closed.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax, Puducherry, has filed these appeals against the order of the Income Tax Appellate Tribunal (ITAT), Madras 'D' Bench, dated 27.02.2019. The appeals pertain to assessment years 2013-14 and 2014-15. The dispute concerns the eligibility of the assessee, M/s. NLC Employees Co-op. Thrift and Credit Society Ltd., to claim deduction under Section 80P(2)(a)(i) of the Income Tax Act. The ITAT had previously ruled in favour of the assessee, a decision which the Revenue is challenging before the High Court.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether the Appellate Tribunal was correct in treating associate members as regular members for the purpose of eligibility for deduction under Section 80P(2)(a)(i) of the Income Tax Act. 2. Whether the ITAT correctly rejected the decision of the Hon'ble Supreme Court in the case of Citizen's Co-operative Society Ltd. Vs. ACIT (387 ITR 1), given the similar facts and circumstances. The Revenue's contentions were that the Tribunal erred in considering associate members as regular members for the deduction under Section 80P(2)(a)(i) and that the Tribunal wrongly disregarded the Supreme Court's decision in the Citizen's Co-operative Society Ltd. case. The judgment does not record specific arguments made by the assessee.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.1028 & 1029 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.12.2019 CORAM : THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN and THE HONOURABLE MR.JUSTICE P.VELMURUGAN T.C.A.Nos.1028 & 1029 of 2019 and C.M.P.No.26926 of 2019 T.C.A.No.1028 of 2019 Principal Commissioner of Income Tax, Puducherry, D.P.Thottam, Muthialpet, Puducherry 605 003.

... Appellant Vs M/s.NLC Employees Co-op. Thrift and Credit Society Ltd., 12, North Promanade Street, Neyveli 607 801. PAN: AAA AN 5694 C ... Respondent PRAYER : Appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 27.02.2019 passed in ITA.No.1045/Chny/2018. T.C.A.No.1029 of 2019 The Commissioner of Income Tax, D.P.Thottam, Muthialpet, Puducherry.

... Appellant 1/5 http://www.judis.nic.in T.C.A.Nos.1028 & 1029 of 2019 Vs M/s.NLC Employees Co-op. Thrift and Credit Society Ltd., 12, North Promanade Street, Neyveli 607 801. PAN: AAA AN 5694 C ... Respondent PRAYER : Appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “D” Bench, dated 27.02.2019 passed in ITA.No.1046/Chny/2018. For Appellant :Mr.J.Narayanaswamy (in both appeals) Senior standing counsel For Respondent :Mr.N.V.Balaji (in both appeals) J U D G M E N T (Judgment of the Court was delivered by N.KIRUBAKARAN, J) These Tax Case Appeals have been preferred by the Revenue against the order dated 28.02.2019 passed in ITA.No.1045 & 1046/Chny/2018 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench for the assessment year 2013-14 & 2014-15. 2.The Revenue has raised the following substantial questions of law for consideration:- 2/5 http://www.judis.nic.in T.C.A.Nos.1028 & 1029 of 2019 (i)Whether on the facts and circumstances of the case, the Appellate Tribunal is right in law in treating the Associate members as regular members while deciding that the assessee is eligible to claim deduction u/s.80P(2)(a)(i) of the Income Tax Act? (ii)Whether the ITAT is correct in rejecting the decision of Hon'ble Supreme Cour tin the case of Citizen's Co- operative Society Ltd., Vs. ACIT (387 ITR 1) wherein the facts and circumstances are similar to the case of the assessee? 3.When the matter is called today, Mr.J.Narayanaswamy learned senior standing counsel would submit that the issue raised in these Appeals are already covered by the judgment passed by this Court in the Assessee's own case in TCA.Nos.786 to 789 of 2015 dated 10.08.2016, upholding the order of the income tax Appellate Tribunal. Since the issue has already been decided against the revenue, following the same, these Appeals are also dismissed. No costs. Consequently, connected Miscellaneous Petition is also closed. (NKKJ) (PVJ) 16.12.2019 sai 3/5 http://www.judis.nic.in T.C.A.Nos.1028 & 1029 of 2019 4/5 http://www.judis.nic.in T.C.A.Nos.1028 & 1029 of 2019 N.KIRUBAKARAN, J. and P.VELMURUGAN

, J.

sai To 1.The Commissioner of Income Tax, D.P.Thottam, Muthialpet, Puducherry. 2.Income Tax Appellate Tribunal 'D' Bench, Chennai. T.C.A.Nos.1028 & 1029 of 2019 Dated : 16.12.2019 5/5 http://www.judis.nic.in

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