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Income Tax Appellate Tribunal, “SMC-A” BENCH : BANGALORE
Before: SHRI JASON P BOAZ
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC-A” BENCH : BANGALORE BEFORE SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA No.1400/Bang/2019 Assessment Year : 2016-17 M/s. Puttur Mahila Vs. The Income Tax Officer, Vividhoddesha Sahakari Sangha Ward – 1, Niyamitha, Puttur. v-349, Puttur – 574 201. PAN : AADAP 2751 K APPELLANT RESPONDENT Assessee by : Shri. G. S. Prashanth, CA Revenue by : Shri. Ganesh R. G, Standing Counsel Date of hearing : 08.08.2019 Date of Pronouncement : 14.08.2019
O R D E R Per Jason P. Boaz, Accountant Member This appeal by the assessee is directed against the order of CIT(A), Mangaluru, dated 30.03.2019.
2.0 The grounds raised by the assessee in this appeal are as under:-
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Vide letter dated 25.06.2019, the assessee raised Additional Grounds of appeal. However, in the course of appellate hearings, the learned AR submitted that the assessee is not pressing the Additional Grounds of appeal raised. These Additional Grounds raised are accordingly rendered infructuous and dismissed as not pressed.
It was submitted by ld. AR of assessee that the ld. CIT(A) has followed the judgment of Hon’ble Karnataka High Court dated 16.06.2017 rendered in the case of PCIT and Another Vs. Totagars Co-operative Sale Society as reported in 395 ITR 611 (Karn). He submitted that the facts of this case are different and therefore, this judgment is not applicable in the present case. He submitted that in the present case, another judgment of Hon’ble Karnataka High Court rendered in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO as reported in 230 Taxman 309 is applicable and therefore, the
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matter should be restored back to AO or CIT (A) for a fresh decision by following this judgment of Hon’ble Karnataka High Court rendered in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (supra). At this juncture, the bench wanted to know regarding the facts of the present case because the decision of Hon’ble Karnataka High Court rendered in both these cases i.e. PCIT and Another Vs. Totagars Co-operative Sale Society (supra) and Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (supra) are on the same line but the conclusion is different because the facts are different. The bench pointed out that in the case of PCIT and Another Vs. Totagars Co-operative Sale Society(supra), the money deposited in bank was out of liability of the assessee and in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO(supra), the money deposited in bank was not out of liability but out of assessee’s own funds and therefore this decision is in favour of the assessee. The bench pointed out that if the facts in the present case are similar to that of the facts in the case of PCIT and Another Vs. Totagars Co- operative Sale Society (supra) then the issue should be decided against the assessee but if the facts of the assessee are similar to that of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO(supra) then the issue is to be decided in favour of the assessee. In reply, it was submitted by ld. AR of assessee that the facts are not readily available and therefore, the matter may be restored back to the file of CIT(A) for fresh decision after examining the facts of the present case in the light of these two judgments of Hon’ble Karnataka High Court. The ld. DR of revenue also agreed to this proposition put forward by the ld. AR of assessee.
I have considered the rival submissions and set aside the order of CIT(A) and restore the matter back to his file for fresh decision in the light of above discussion, by way of a speaking and reasoned order after providing adequate opportunity of being heard to both sides. The ld. CIT(A) is directed to pass a
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speaking and reasoned order after comparing the facts of present case with the facts in the case of The Citizen Co-operative Society Ltd. Vs. ACIT (supra). He is also directed to examine the facts of present case in the light of these two judgments of Hon'ble Karnataka High Court rendered in the case of Tumkur Merchants Souharda Credit Co-operative Ltd. Vs. ITO (supra) and PCIT and Another Vs. Totagars Co-operative Sale Society (supra) and pass necessary order as per law in the light of above discussion after providing adequate opportunity of being heard to both sides.
In the result, the appeal filed by the assessee for Assessment Year 2016- 17 is allowed for statistical purposes.
Order pronounced in the open court on this 14th day of August, 2019.
Sd/- Sd/- Sd/- (PAVAN KUMAR GADALE) (JASON P BOAZ) Judicial Member Accountant Member Bangalore. Dated: 14th August, 2019. /NS/*
Copy to: 1. Appellants 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard file By order
Assistant Registrar, ITAT, Bangalore.