GRAMINA VYAVASAYA SEVA SAHAKARI BANK NIYAMIT,BHATKAL vs. INCOME TAX OFFICER, WARD -, KARWAR

PDF · subscribers
ITA 214/PAN/2019Status: DisposedITAT Panaji19 July 2023AY 2016-17Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI G.D. PADMAHSHALI (Accountant Member)3 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the existence of nominal members does not disentitle the assessee from claiming deduction under Section 80P(2)(a)(i), following a subsequent Supreme Court decision. Therefore, the disallowance of deduction was set aside.

What were the facts?

The assessee, a cooperative bank, claimed deduction under Section 80P(2)(a)(i) of the Income Tax Act. The lower authorities disallowed this deduction, citing the assessee's having both regular and nominal members, relying on a Supreme Court judgment.

What were the issues?

Whether a cooperative bank with both regular and nominal members is eligible for deduction under Section 80P(2)(a)(i) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, PANAJI BENCH : PANAJI

Before: SHRI SATBEER SINGH GODARA & SHRI G.D. PADMAHSHALI

Hearing: 12.07.2023Pronounced: 19.07.2023

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER ITA.Nos.228 & 214/PAN./2019 Assessment years 2015-2016 & 2016-2017 Grameena Vyvasaya Sahakari Bank Limited, The Income Tax Officer, Post Jali, Bhatkal Uttara Ward-1, Karwar, Kannada District. vs. State of Karnataka. State of Karnataka. PIN – 581 301 PIN – 581 320 PAN AAAJG0053F (Appellant) (Respondent) -None- For Assessee : For Revenue : Shri N. Shrikanth Date of Hearing : 12.07.2023 Date of Pronouncement : 19.07.2023 ORDER PER BENCH :

These assessee’s twin appeals ITA.Nos.228 & 214/PAN./2019, for assessment years 2015-2016 & 2016- 2017, arise against the CIT(A), Mangaluru’s separate orders passed in case no.10423/MNG/CIT(A)MNG/17-18 and in case no.10423/MNG/CIT(A)MNG/18-19, dated 19.03.2019 and 08.03.2019, respectively, involving proceedings u/sec.143(3) of the Income Tax Act, 1961 (in short "the Act").

Heard both the parties. Case files perused.

2 ITA.Nos.228 & 214/PAN./2019 2. We note during the course of hearing that there is hardly much a need for us to delve deeper in the relevant factual matrix so far as the assessee’s identical sole substantive grievance herein seeking to delete sec.80P(2)(a)(i) deduction disallowance(s) of Rs.1,31,29,258/- and Rs.62,99,798/-, assessment year-wise, respectively, is concerned. This is for the precise reason that both the learned lower authorities are of the view that the assessee is not eligible to claim the same in light of having both regular as well as nominal members as per hon’ble apex court’s judgment in Citizen Co-operative Society Limited [2017] 397 ITR 1 (SC).

3.

Learned DR also vehemently relied on both the authorities impugned sole reason for denying sec.80P(2)(a)(i) deduction to the assessee. He could hardly dispute that their lordships’ subsequent landmark decision in Mavilayi Service Co-operative Bank Ltd., vs. CIT [2021] 431 ITR 1 (SC) has settled the law that such a reason of an assessee having nominal members as well would hardly disentitle it for the impugned sec.80P(2)(a)(i) deduction. Faced with the situation, we accept the assessee’s instant identical sole substantive ground in both the appeals in very terms. Ordered accordingly.

4.

These twin appeals of the assessee are allowed in above terms.

3 ITA.Nos.228 & 214/PAN./2019 Order pronounced in the open court on 19.07.2023.

More judgments on Section 80P(2)(a)(i)

All 2,347 judgments and leading authorities on Section 80P(2)(a)(i) →

Recent GST High Court judgments

Search GST case law →