ACIT, CHENNAI vs. TAMILNADU COOPERATIVE HOUSING FEDERATION LTD., CHENNAI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the issue was covered by the jurisdictional High Court's decision in the assessee's own case for a prior assessment year. Therefore, the order of the CIT(A) was upheld.
What were the facts?
The assessee, a cooperative housing federation, claimed deduction under Section 80P for the assessment year 2008-09. The Assessing Officer disallowed the claim, but the CIT(A) allowed it, following previous favorable decisions in the assessee's own case.
What were the issues?
Whether the assessee, a cooperative housing federation, is eligible for deduction under Section 80P of the Income Tax Act, considering its activities and previous judicial pronouncements.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
आयकर अपीलीय अिधकरण, ‘ए’ �यायपीठ, चे�ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI �ी एन.आर.एस. गणेशन, �याियक सद�य एवं �ी ए. मोहन अलंकामणी, लेखा सद�य केसम� BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.557/Mds/2017 िनधा�रण वष� / Assessment Year : 2008-09 & CO No.38/Mds/2017 The Asst. Commissioner of Income v. M/s. Tamilnadu Cooperative Tax, Housing Federation Ltd., Non-Corporate Circle – 9 (1), No.40, Ritherdon Road, Chennai – 34. Chennai – 600 007. PAN : AAAAT0096N (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri S. Balasubramanian, CIT ��यथ� क� ओर से/Respondent by : Shri S. Kamaraj, CA सुनवाई क� तारीख/Date of Hearing : 02.05.2017 घोषणा क� तारीख/Date of Pronouncement : 29.06.2017 आदेश आदेश /O R D E R आदेश आदेश PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER:
This appeal is filed by the Revenue and the cross objection by the assessee arising out of the order passed by the learned Commissioner of Income Tax (Appeals)-10, Chennai, dated 30.12.2016 in for the assessment year 2008-09 passed U/s.143(3) r.w.s. 147 of the Act.
The Revenue has raised several grounds in its appeal, however the crux of the issue is that the Ld.CIT(A) has erred in allowing the appeal of the assessee by granting deduction U/s.80P(2)(a)(i) of the Act, following the order of the Ld.CIT(A), jurisdictional Tribunal and the Hon’ble High Court in the appellant’s own case on the identical issue for the assessment year 2007-08.
The assessee has raised cross objections and they are in support of the order of the Ld.CIT(A) for granting deduction U/s. 80P(2)(a)(i) of the Act.
The brief facts of the case are that the assessee is a registered cooperative society providing credit facilities to its members for construction of houses both rural and urban. The members of the assessee society are rural and urban housing societies. The assessee’s society with the help of the State Government of Tamil Nadu finances loan to its members (housing societies), who in turn give housing loan to their members who are the actual beneficiaries. The primary objectives of the federation are:-
(i) To obtain fund by way of loans.
(ii) To grant loans to the affiliated housing societies.
(iii) To acquire housing sites / construct residential house (iv) To inspect affiliated housing societies.
(v) To do all other things those are incidental for attainment of the above objects.
For the relevant assessment year the assessee filed its return of income on 16.12.2008 admitting total income of Rs.24,19,17,147/- and claimed the entire amount as deduction U/s.80P of the Act. On the earlier occasion for the assessment year 2007-08, the Ld.AO had disallowed the deduction U/s.80P of the Act to the assessee because of the following reasons:- “1) The Tamil Nadu Cooperative housing Federation was originally incorporated in the name of “The Madras Cooperative Central House Mortgage Bank Limited” in 1959, which was renamed as “Tamil Nadu Housing Society Limited, Madras in 1083 and was again renamed as “Tamil Nadu Cooperative Housing Federation Limited" in 1987. In this connection, it is to be stated that the deduction u/s. 80P is applicable to all societies except housing society, urban consumer’s society. The federation is covering the entire area of Tamil Nadu comprising 619 urban societies and 197Taluk cooperative housing societies. Since the section does not cover housing societies, the assessee is not eligible for deduction u/s.80P.
2) The assessee M/s. Tamil Nadu Cooperative housing Federation Ltd, has extended finance facilities to housing societies but not primary members. “Members” cannot be extended to include member cooperative societies, which in turn have primary members deriving the benefit of financing. Hence, it has to be understood that the assessee is extending credit facilities to its constituent members i.e. Rural & Urban housing societies, but not directly to the actual beneficiaries.”
Subsequently, the Ld.CIT(A), the Chennai Bench of the Tribunal and the Hon’ble Jurisdictional Madras High Court had held the issue in favour of the assessee. However, for the relevant assessment year, the Ld.AO in order to keep the issue alive, followed his earlier order and thereby disallowed the claim of deduction U/s.80P to the assessee. On appeal, the Ld.CIT(A) following his earlier order for the assessment year 2007-08, order of the Chennai Bench of the Tribunal and the Hon’ble Jurisdictional High Court in the assessee’s own case for the assessment year 2007-08, allowed the appeal of the assessee, aggrieved by which, the Revenue is now in appeal before us.
At the outset, we find the issue covered by the decision of the Hon’ble Jurisdictional High Court in the assessee’s own case, therefore we do not find it necessary to interfere with the order of the Ld.CIT(A) in this issue for the relevant assessment year. Accordingly we uphold the order of the Ld.CIT(A).
The cross objection filed by the assessee stands allowed in favour of the assessee, as it is only in support of the order of the Ld.CIT(A).
In the result, the appeal of the Revenue is dismissed and the cross objection filed by the assessee is allowed.
Order pronounced on 29th June, 2017 at Chennai.
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