THE COMMISSIONER OF INCOME TAX vs. M/S SUPRABHAT CREDIT

Date of Judgment 06.02.2017 I.T.A. 659/2015 The Commissioner Of Income Tax vs. M/s. Suprabhat Credit Souharda Sahakari Ltd., 1 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 6TH DAY OF FEBRUARY 2017 PRESENT THE HON’BLE DR. JUSTICE VINEET KOTHARI AND THE HON’BLE MR. JUSTICE SREENIVAS HARISH KUMAR INCOME TAX APPEAL No.659/2015 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX C. R. BUILDING, ATTAVARA, MANGALORE-575 001. 2. THE INCOME TAX OFFICER WARD-2, SANTERI KRUPA BUILDING, KAIGA ROAD, HABBUWADA, KARWAR-581 306. ... APPELLANTS (BY SRI Y. V. RAVIRAJ FOR SRI ARAVIND K. V., ADVOCATE) AND : M/S. SUPRABHAT CREDIT SOUHARDA SAHAKARI LTD., JAI HIND LODGE ROAD, ANKOLA, PAN NO. AABAS 7089M. ... RESPONDENT

Date of Judgment 06.02.2017 I.T.A. 659/2015 The Commissioner Of Income Tax vs. M/s. Suprabhat Credit Souharda Sahakari Ltd., 2 THIS APPEAL IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT, 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW, AS STATED ABOVE, TO ALLOW THE APPEAL AND TO SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, PANAJI, IN ITA NO.52/PNJ/2015 DATED 16.07.2015 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND THE ORDER PASSED BY THE INCOME TAX OFFICER, WARD-2, KARWAR. THIS APPEAL COMING ON FOR ADMISSION THIS DAY, Dr. VINEET KOTHARI, J., DELIVERED THE FOLLOWING: J U D G M E N T Mr. Y. V. Raviraj, Adv. for appellant. 1. Learned counsel for the Revenue has fairly submitted before this Court that the similar Income Tax Appeals, involving identical issue, have been disposed of by the Co-ordinate Bench of this Court and one such order is placed before us, on 19.01.2016 in I.T.A. No.100005/2016 (The Principal Commissioner of Income Tax vs. Shri Mahatma Basaveshwar Co-operative Credit Society Limited), in which the Co-ordinate Bench of this Court held as under :

Date of Judgment 06.02.2017 I.T.A. 659/2015 The Commissioner Of Income Tax vs. M/s. Suprabhat Credit Souharda Sahakari Ltd., 3 “ The learned counsel for the appellants submits that this appeal is covered by the decision of this Court in I.T.A.No.100173/2015 disposed of on 05.01.2016. He further submits that since notice is not issued to the respondent in this case also, liberty to move this Court to revive this appeal subject to decision of the Hon’ble Supreme Court in the SLPs filed by the Revenue may be reserved in like terms as in I.T.A.No.100173/2015. 2. In I.T.A.No.100173/2015, it was submitted by the appellants – Revenue that it has taken up the issue involved in the said appeal in an SLP before the Hon’ble Supreme Court and accordingly, a prayer was made to grant liberty to revive the said appeal in the event Revenue succeeded before the Hon’ble Supreme Court. After considering the said submissions, the said appeal was disposed of by holding thus: “7. At this juncture, the learned counsel for the Revenue submitted that the issue involved in this appeal has been taken up in a Special Leave Petition and the same is pending adjudication before the Hon’ble Apex Court. On this premise, he prays for liberty to revive this appeal in the

Date of Judgment 06.02.2017 I.T.A. 659/2015 The Commissioner Of Income Tax vs. M/s. Suprabhat Credit Souharda Sahakari Ltd., 4 event of the Revenue succeeding in the appeal/s filed before the Apex Court. 8. Having noticed that the issue involved in this appeal is identical to the issue in ITA 100080/2014, we have held that this appeal lacks merit and deserves to be rejected without notice to the respondent. However, this decision shall be binding inter party even if the Revenue succeeds before the Apex Court. Therefore, we consider that the request made by the Revenue seeking leave to revive this appeal as reasonable. 9. In the result, the appeal stands dismissed with liberty to the Revenue to revive this appeal in the event, Revenue succeeds in the SLP filed before the Apex Court on the same issue. No costs.” 3. Accordingly, recording the submission of the learned counsel for the appellants this appeal also stands dismissed with liberty contained in I.T.A. No.100173/2015 as extracted hereinabove. Ordered accordingly. 2. Learned counsel for the appellant – Revenue submitted further that in case the appeal pending before

Date of Judgment 06.02.2017 I.T.A. 659/2015 The Commissioner Of Income Tax vs. M/s. Suprabhat Credit Souharda Sahakari Ltd., 5 the Hon’ble Supreme Court is decided in favour of the Revenue, they may be given liberty to revive the said issue before this Court. Accordingly, with the aforesaid liberty given to the Revenue, we dispose of the present appeal in the same terms. Sd/- JUDGE Sd/- JUDGE hnm