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10-01-2019, Udaya Souharda Credit, Section 80P(2), Tribunal Bangalore

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5 months 1 week ago #8356 by amit
Section - 80P(2), 80 P [2][a], 234A, 234B
Order Date - 10-01-2019
Favouring - Assessee allowed for statistical purpose
Court - Tribunal Bangalore
Appellant - Udaya Souharda Credit Cooperative Society Limited
Respondent - ITO
Justice - N.V VASUDEVAN VP & JASON P. BOAZ AM
Citation - 119Taxpundit152
Appeal No. - ITA No.206/Bang/2018
Asstt. Year - 2014-15

Order

PER : Jason P Boaz

This appeal is preferred by the assessee against the order of the CIT(A)-5, Bangalore, dated 15.11.2017 for Assessment Year 2014-15, inter alia, on the following grounds:

1. The order of the learned Commissioner of Income-tax [Appeals] - 5, in so far it is against the appellant is opposed to law, weight of evidence, facts and circumstances of the Appellant's case.

2. The appellant denies itself liable to be assessed on total income of Rs.3,02,67,590/-, as against the returned income by the appellant of Rs.NIL/- after claiming eligible deduction under section 80 P [2] of the Act, on the facts and circumstances of the case.

3. The learned Commissioner of Income-tax [Appeals] is not justified in law in denying the eligible deduction claimed by the appellant under section 80 P [2] of the Act amounting to Rs. 3,02,67,590/- under the provisions of section 80 P [2][a] of the Act and under the provisions of section 80 P [2] [d] of the Act being the interest earned by the appellant on the facts and circumstances of the case.

4. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the appellant is not a Co-Operative Bank within the meaning of Part - V of the Banking Regulation Act 1949, to which the Explanation to section 80 P [4] of the Act draws reference and consequently, the provisions of section 80 P [4] of the Act are not applicable to the case of the appellant.

5. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the provisions of section 80P of the Act allows "the whole of the amount of profits and gains of business attributable to any one or more of such activities" in making a claim of deduction, on the facts and circumstances of the case.

6. The learned Commissioner of Income-tax [Appeals] is not justified in holding that the activities of the appellant was not restricted to its members on mere suspicion, to hold that the appellant was not eligible to claim deduction under section 80 P [2] of the Act on the facts and circumstances of the case.

7. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the interest income earned by the appellant out of the deposits kept in the in the Banks are all out of the monies of the members of the appellant society, consequently the learned authorities below ought to have allowed deduction under section 80 P [2] of the Act on such interest income earned by the appellant on the facts and circumstances of the case.

8. Without prejudice, though not conceding, the learned Commissioner of Income-tax [Appeals] ought to have allowed deduction under section 80 P [2] of the Act proportionately, in so far as the income attributable to the activities of the appellant which are not in violation of the provisions of section 80 P [2] of the Act on the facts and circumstances of the case.

9. Without prejudice the learned authorities below ought to have allowed the corresponding expenditures proportionately on income earned by the appellant from investments which was claimed as deduction under section 80 P [2][d] of the Act, on the facts and circumstances of the case.

10. Without prejudice the learned authorities below did not give the appellant a reasonable opportunity of hearing and produce the documents in support of the case of the appellant which is against the principles of natural justice and consequently the impugned orders passed requires tobe cancelled on the facts and
circumstances of the case.

11. Without prejudice to the right to seek waiver as per the parity of reasoning of the decision of the Hon'ble Apex Court in the case of Karanvir Singh 349 ITR 692, the Appellant denies itself liable to be charged to interest under section 234 A & 234 B of the Income Tax Act under the facts and circumstances of the case. Further the levy of interest under section 234 A Et 234 B of the Act is also bad in law as the period, rate, quantum and method of calculation adopted on which interest is levied are all not discernible and are wrong on the facts of the case.

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