ITO WARD-3(2)(2), BANGALORE vs. M/S. SREE BHYRAVESHWARA CREDIT CO-OPERATIVE SOCIETY LTD.,, BANGALORE

This appeal is filed by the assessee which is directed against the order of learned Commissioner of Income-tax (Appeals) – 3, Bangalore dated 30/9/2016 for assessment years 2012-13.

The grounds raised by the Revenue are as under:

The ld DR for the Revenue supported the assessment order. He also submitted that SLP filed before the Hon’ble Apex Court in the case of CIT Vs. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha has been admitted by the Hon’ble Apex Court as per the judgment reported in 234 taxman 772 (SC). He submitted a copy of the judgment of Hon’ble Apex court. At this juncture, a query was raised as to whether the Hon’ble Apex Court has stayed the operation of this judgment of Hon’ble High Court. He fairly conceded that no stay was granted by Hon’ble Apex Court.

The ld AR of the assessee supported the order of the ld CIT(A) as per which he has followed the binding judgment of Hon’ble Karnataka High Court rendered in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (Supra) as reported in 369 ITR 86 (Kar).

I have considered rival submissions. I find that ld CIT(A) has followed the binding judgment of Hon’ble Karnataka High Court rendered in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (Supra). As per ld DR for the Revenue, SLP has been granted by the Hon’ble Apex Court vide judgment dated 6/1/2015 but this is also true that stay has not been granted by Hon’ble Apex Court regarding operation of this judgment of Hon’ble Karnataka High Court and, therefore, this judgment of Hon’ble Karnataka High Court still holds the field and same is binding on me. Therefore, I find no reason to interfere in the order of the ld CIT(A).