Income Tax Appellate Tribunal - Delhi
Mamurpur Co-Operative Thrift And ... vs Acit, Circle-38(1), New Delhi on 2 December, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : SMC : NEW DELHI
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
I.T.A. No. 1255/Del/2019
Assessment Year: 2013-14
MAMURPUR COOPERATIVE THRIFT vs. ACIT, CIRLCE 38(1),
AND CREDIT SOCEITY LTD., NEW DELHI
1529/1, MAMURPUR,
NARELA,
DELHI - 110 040
(PAN: AABAT6103B)
(ASSESSEE) (RESPONDENT
Assessee by : Shri R.K. Gaur, CA
Revenue by : Shri Pradeep Singh Gautam, Sr. DR.
ORDER
The Assessee has filed this appeal against the impugned order dated 20.11.2018 passed by the Ld. CIT(A)-13, New Delhi on the following grounds:-
1. On the facts and circumstances of the case and in law, Ld. Authorities below have erred in disallowing the deduction of interest earned on deposits u/s.
80P(2)(a)(i) of the Income Tax Act, 1961 amounting to Rs. 16,34,897/-.
2. On the facts and circumstances of the case and in law, Ld. Authorities below have disallowed the interest earned from cooperative bank in contravention of the specific provision contained in Section 80P(2)(d) on the Income Tax Act, 1961.
3. On the facts and circumstances of the case and in law, the order of the ld. AO is bad and is against the tenets of natural justice liable to be quashed.
4. The appellant craves to add, alter, modify or delete any ground of appeal during the pendency of appeal.
2. At the time of hearing, Ld. Counsel for the assessee stated that the issues in dispute on identical facts and circumstances of the case have already been adjudicated and decided in favour of another assessee by the ITAT, 'D' Bench, New Delhi vide its order dated 19.12.2014 passed in the case of ACIT, Circle 38(1), New Delhi vs. M/s Jawala Cooperative Thrift & Credit Society Ltd., New Delhi. Therefore, he requested to follow the said decision and addition in dispute may be deleted by allowing the appeal filed by the assessee.
3. On the contrary, Ld. DR relied upon the orders passed by the revenue authorities.
4. I have heard both the parties and perused the records, the impugned order as well as the case law relied by the Ld. Counsel for the assessee. I find that the ITAT, 'D' Bench, New Delhi vide its order dated 19.12.2014 passed in the case of ACIT, Circle 38(1), New Delhi vs. M/s Jawala Cooperative Thrift & Credit Society Ltd., New Delhi has adjudicated the similar and identical issue and decided the same in favour of the assessee by holding as under:-
"9. We have heard rival parties and have gone through the material placed on record. We find that total income earned by the assessee included income on fixed deposits placed with Bombay Mercantile Bank, interest income from a scheduled bank and dividend income from Delhi Cooperative Bank. From the certificate as placed at page book page 30, we find that Bombay Mercantile Cooperative Bank is a cooperative society registered under Maharastara Cooperative Societies Ltd. and we further find that the said society has been assessed u/s. 143(3) as a cooperative society and its income was allowed to the exempt u/s. 80P(2)(i) as held by Mumbai Tribunal in ITA No. 4128 and 4129 vide its order dated 30.11.2005, for assessment year 1990-91 and 1991-92 and further by Mumbai Tribunal vide order dated 07.9.2011 in ITA No. 5292 for assessment year 1997-98. Therefore, it is held that fixed deposits placed with Bombay Mercantile Bank falls within the exemption granted by Section 80O(2)(d) of the Act. The assessee was also eligible under the provisions of Section 80O(2)a(i) as the funds placed by assessee in the form of fixed deposits can be said to be kept for the purpose of business of the assessee as the assessee had availed credit facilities also against such fixed deposits which were again 2 used for the purpose of business of assessee. Moreover, under similar circumstances, Chandigarh Bench in ITA No. 996/2009 as noted by Ld. CIT(A) has decided in favour of assessee. The dividend income is exempt for all persons including assessee. The interest income from bank amounting to Rs. 18,190/- is though not exempt u/s. 80(p)(2)(d) but is exempt u/s. 80P(2)(i) of the Act. The case law of Totgar's Cooperative Society was rightly distinguished by Ld. CIT(A). Therefore, keeping in view all facts and circumstances, we do not find any infirmity in the order of the Ld. CIT(A).
10. In view of above, appeal filed by the Revenue is dismissed."
4.1 After perusing the aforesaid finding of the Tribunal, I am of the considered view that the issues in dispute are squarely covered by the aforesaid decision. Therefore, respectfully following the aforesaid precedent, the addition in dispute is hereby deleted and the appeal filed by the assessee is allowed.
5. In the result, the appeal filed by the assessee stands allowed.
Order pronounced on 02/12/2019.
Sd/-
[H.S. SIDHU] JUDICIAL MEMBER Date 02/12/2019 "SRB"
Copy forwarded to: -
1. Appellant -
2. Respondent -
3. CIT
4. CIT (A)
5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Benches 3