ITO 27(2)(3), NAVI MUMBAI vs. MUMBAI TELEWORKERS CO OP CREIT SOCIETY, MUMBAI

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ITA 920/MUM/2015Status: DisposedITAT Mumbai04 August 2016AY 2010-112 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 upheld the CIT(A)'s order, agreeing that Section 80P(4) is not applicable to credit cooperative societies. Therefore, the assessee is eligible for the deduction claimed under Section 80P(2).

What were the facts?

The assessee, a co-operative credit society, claimed deduction under Section 80P(2) of the Income Tax Act. The Assessing Officer denied this deduction, considering the society a cooperative bank to which Section 80P(4) would apply. The CIT(A) allowed the deduction, following previous Tribunal and High Court decisions.

What were the issues?

The primary issue was whether Section 80P(4) of the Income Tax Act, which disallows deduction for cooperative banks, applies to a credit cooperative society.

Which sections of the Income-tax Act were involved?

Section 80P(2),Section 80P(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)

For Respondent: Shri A. Ramachandran
Hearing: 4.8.2016Pronounced: 4.8.2016

The appeal filed by the Revenue is directed against the order dated 19.12.2014 passed by learned CIT(A)-25, Mumbai and it relates to A.Y. 2010- 11.

2.

The Revenue is aggrieved by the decision of learned CIT(A) in holding that provisions of section 80P(4) is not applicable to the assessee and hence deduction prescribed u/s.80P(2) of the Act is available to the assessee.

3.

None appeared on behalf of the assessee and hence I proceed to decide the appeal of the Revenue ex-parte, without presence of the assessee.

4.

I have heard learned Departmental Representative and perused the record. The assessee is a co-operative credit society and during the year under consideration it declared nil income after claiming deduction of ` 32,85,658/- u/s. 80P(2)(a) of the Act. The Assessing Officer took the view that the assessee should be considered as cooperative bank and hence deduction u/s. 80P(2)

2 Mumbai Teleworkers Cooperative Credit Society will not be available to the assessee, in view of the provisions of section 80P(4) of the Act. Learned CIT(A) noticed that the Tribunal has allowed claim of the assessee in A.Y. 2009-10 in vide its order dated 30.6.2014. Learned CIT(A) also noticed that Hon'ble Gujarat High Court has held in the case of CIT Vs. Jafari Momin Vikas Co-operative Credit Society Ltd. (Tax Appeal No. 442,443 & 863 of 2013 dated 15.1.2014) that provisions of section 80P(4) would not apply to the credit cooperative society. Accordingly, learned CIT(A) allowed the appeal of the assessee. Aggrieved, the Revenue has filed this appeal before the Tribunal.

5.

Learned Departmental Representative placed reliance on the assessment order passed by the Assessing Officer.

6. Since coordinate Bench of the Tribunal has held that the assessee is eligible for deduction u/s.80P(2) of the Act in AY 2009-10 (supra) and since decision rendered by the learned CIT(A) is in accordance with the decision taken by the Tribunal in A.Y. 2009-10, I do not find any reason to interfere in the order passed by learned CIT(A). Accordingly, we uphold the order passed by learned CIT(A).

6.

In the result, appeal filed by the Revenue is dismissed. Order has been pronounced in the Court on 4.8.2016

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