ITO, COIMBATORE vs. VEERAKERALAM PRIMARY AGRICULTURAL COOPERATIVE SOCIETY, COIMBATORE

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ITA 630/CHNY/2016Status: DisposedITAT Chennai25 November 2016AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, relying on its own previous orders and the Madras High Court's judgment in the assessee's own case, held that the assessee is a credit society eligible for deduction under Section 80P. Therefore, the order of the lower authority was confirmed.

What were the facts?

The Revenue appealed the CIT(A)'s order allowing deduction under Section 80P to the assessee, a primary agricultural cooperative society. The Assessing Officer had disallowed the deduction, considering the assessee to be a bank. The assessee did not appear before the Tribunal.

What were the issues?

Whether a primary agricultural cooperative society is eligible for deduction under Section 80P, or if it falls under the exclusion for banks as per Section 80P(4).

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY

Hearing: 04.10.2016Pronounced: 25.11.2016

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:

1.

This appeal of the revenue is directed against the order of CIT(A)-3, Coimbatore dated 15.12.2015 and pertains to assessment year 2012-13.

2.

The notice of hearing was served on the assessee by R.P.A.D. The Registry has placed on record the postal acknowledgement as a proof of service of notice of hearing. In spite of receipt of notice by R.P.A.D., the assessee has not choose to appear before this Tribunal. Therefore, we have heard the learned Representative for the Department and proceeded to dispose off the appeal on merit.

3.

Shri A.V.Sreekanth, the learned representative for the department submitted that the only issue arises for consideration is disallowance of deduction claimed by the assessee under Section 80P of the Act. The assessing officer disallowed the claim of the assessee under Section 80P on the ground that the assessee is a bank within the meaning of Section 80P(4). However, the CIT(A) by placing reliance in the order of ITAT in the assessee’s own case in dated 21.03.2014, for assessment year 2008-09, allowed the claim of the assessee. According to the learned representative, the assessee cannot be considered to be a credit cooperative society.

4.

We have considered the submission of the department representative and also perused the material available on record. The issue arises for consideration is whether the assessee is a cooperative bank or a credit society.

It was examined by this Tribunal in the assessee’s own case for assessment year 2008-09 and found that the assessee is a credit society and eligible for deduction under Section 80P of the Act. Similar view was taken by Madras High Court in the assessee’s own case in Tax Case Appeal Nos.735, 755 of 2014 and 460 of 2015 dated 05.07.2016.

5.

In view of the judgment of the Madras High Court in assessee’s own case, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly, the same is confirmed.

6.

In the result, the appeal of the revenue is dismissed.

Order pronounced on 25th November, 2016 at Chennai.

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