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[Cites 3, Cited by 31]

Income Tax Appellate Tribunal - Bangalore

Deputy Commissioner Of Income Tax, ... vs Sri. Biluru Gurubasava Sahakari Pattin ... on 21 April, 2017

              IN THE INCOME TAX APPELLATE TRIBUNAL
                       "C" BENCH : BANGALORE

      BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER
        AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER

                      ITA Nos.1407 & 1408/Bang/2016
                   Assessment years : 2012-13 & 2013-14

The Deputy Commissioner of             Vs.   Sri Biluru Gurubasava Sahakari
Income Tax,                                  Pattin Sangh Niyamit,
Central Circle 2(2),                         No.112/5, Nara Building,
Bangalore.                                   Adat Bazar,
                                             Bagalkot - 587 101.
                                             PAN: AABAS 7016A
          APPELLANT                                    RESPONDENT

      Appellant by        : Shri M.K. Biju, Jt.CIT(DR)(ITAT-3),
                            Bengaluru
      Respondent by       : Shri S. Ramasubramanian, CA

                 Date of hearing       : 18.04.2017
                 Date of Pronouncement : 21.04.2017

                                   ORDER

   Per Sunil Kumar Yadav, Judicial Member

These are appeals preferred by the revenue against the order of CIT(Appeals) inter alia on the following grounds:-

"1. Whether in law and on facts the CIT(A) was justified in not appreciating the fact that the activity of the assessee was covered by Explanation to section80P(4) of the Income-tax Act, 1961?
2. Whether on the facts and in the circumstances of the case and in law, the CIT(A) was justified in law in holding that ITA Nos. 1407 & 1408/Bang/2016 Page 2 of 3 the assessee-society is entitled to deduction under section 80P(2)(a)(i) of the Income-tax Act despite the fact that the assessee-society is mainly involved in extending credit facilities to its members which is in the nature of banking activity, falling within the ambit of clause (viia) of subsection 24 of section 2 of the Act, introduced wef 01/04/2017?
3. Any other ground that may be taken up at the time of hearing."

2. During the course of hearing, the ld. counsel for the assessee invited our attention that the CIT(Appeals) has decided the appeal in favour of the assessee following its order as well as the order of Tribunal in which it was held that assessee is entitled for deduction u/s. 80P(2)(a)(i) of the Act. It was further contended that the view taken by the Tribunal was also approved by the Hon'ble jurisdictional High Court. Copy of the judgment of the Hon'ble jurisdictional High Court reported at 369 ITR 86 in assessee's case is placed on record.

3. The ld. DR simply relied upon the order of AO.

4. Having carefully examined the order of lower authorities and the judgments referred to by the parties, we are of the view that the impugned issue is squarely covered by the earlier order of the Tribunal and the Hon'ble High Court. Since the CIT(Appeals) has decided the issue following its earlier order and order of the Tribunal, we find no infirmity therein. Accordingly, we confirm his order.

ITA Nos. 1407 & 1408/Bang/2016 Page 3 of 3

5. In the result, both the appeals of revenue stand dismissed.

Pronounced in the open court on this 21st day of April, 2017.

                Sd/-                                            Sd/-

        ( S. JAYARAMAN )                          (SUNIL KUMAR YADAV )
        Accountant Member                             Judicial Member

Bangalore,
Dated, the 21st April, 2017.

/ Desai Smurthy /

Copy to:

1.    Appellant
2.    Respondent
3.    CIT
4.    CIT(A)
5.    DR, ITAT, Bangalore.
6.    Guard file
                                                   By order



                                            Assistant Registrar,
                                            ITAT, Bangalore.