TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 556
X X X X Extracts X X X X
X X X X Extracts X X X X
.... terms of the provisions of the Income Tax Act within the statutory period, hence, assessments were also completed by the department with the co-operation of the petitioner. While so, when the petitioner filed the return of income claiming deduction under Section 80P of the Income Tax Act for the assessment year 2009-10, the claim of the petitioner was rejected holding that the petitioner did not satisfy the definition of 'agricultural credit society' set out in terms of the Explanation to Section 80P(4) of the Act. Yet another grievance of the petitioner is that when the impugned assessment order dated 10.3.2015 was passed under Section 143(3) effecting disallowance of Rs. 91,92,883/- under Section 40(a)(ia) for the alleged violation of Section 194A and Rs. 3,20,686/- and Rs. 27,500/- as disallowances under Section 40(a)(ia) for the alleged violation of Section 194H and Section 194J of the Act, the order of re-assessment under Section 143(3) read with Section 147 erroneously resulted in the determination of the income of the petitioner at Rs. 1,28,87,139/- and the tax payable thereon at Rs. 59,79,550/-. Aggrieved by the same, an appeal has been filed before the second resp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rd of Direct Taxes in File No.404/10/2009-ITCC dated 1.12.2009 affirming Instruction No.1914 dated 2.12.93, which mandates that stay of recovery is liable to be granted if the issue covered by orders of the superior authority, directly applicable to the present case. In support of her submissions, she also brought to the notice of this Court the various decisions of the Income Tax Appellate Tribunal, Panaji and Chennai Benches in (1) I.T.A.Nos.1 to 3/PNJ/2012 dated 30.3.2012 (Deputy Commissioner of Income Tax, Central Cirlce, Panaji, Goa v. M/s Jayalakshmi Mahila Vividodeshagala); (2) in I.T.A.No.174/Mds/2013 dated 23.8.2013 (Income Tax Officer v. Kasipalayam Primary Agricultural Co-operative Bank Ltd.) and (3) in I.T.A.No.197/Mds/2013 dated 11.2.2014 (Income Tax Officer v. M/s Veerakeralam Primary Agricultural Cooperative Credit Society), for the proposition that if the assessee is admittedly not a credit cooperative bank, but a credit cooperative society, the exclusion clause of sub-section (4) of Section 80P, therefore, would not apply. 4. Taking support from the above decisions, it was contended that when the petitioner had filed an appeal against the assessment order and the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed counsel for the petitioner requested this Court to direct the second respondent-appellate authority to take up the appeal itself in I.T.A.No.327/CIT(A)PDY/2013-14 for final hearing on merits expeditiously, as the petitioner had already received the notice dated 4.2.2015 fixing the date of hearing on 16.2.2015, since adjourned to subsequent date. 7. Heard the learned counsel on either side. 8. The circular issued by the Central Board of Direct Taxes in File No.404/10/2009-ITCC dated 1.12.2009 affirming Instruction No.1914 dated 2.12.93 clearly enlightens the duty, responsibility and the guidelines cast on the assessing authority for staying demand. In this context, it is appropriate to extract the relevant portions of the Instruction No.1914 dated 2.12.93, as follows:- ''A. Responsibility (i) It shall be the responsibility of the Assessing Officers and the TRO to collect every demand that has been raised, except the following: (a) Demand which has not fallen due; (b) Demand which has been stayed by a Court or ITAT or Settlement Commission; (c) Demand for which a proper proposal for write off has been submitted; (d) Demand stayed in accordance with paras B & C belo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ooperative Credit Society, Coimbatore), while dealing with a similar issue, placing reliance on the judgment of the Gujarat High Court in the case of Commissioner of Income Tax v. Jatari Momin Vikas Cooperative Credit Society Ltd., 2014 (2) TMI 28, has held as follows:- ''7. From the above clarification, it can be gathered that sub-section (4) of Section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd., was under consideration. Circular clarified that the said entity not being a cooperative bank, section 80P(4) of the Act would not apply to it. In view of such clarification, we cannot entertain the Revenue's contention that section 80P(4) would exclude not only the co-operative banks other than those fulfilling the description contained therein but also credit societies, which are not cooperative banks. In the present case, respondent assessee is admittedly not a credit cooperative bank but a credit cooperative society. Exclusion clause of sub-section (4) of Section 80P, therefore, would not apply. In the result, Tax Appeals are dismissed. The Revenue has tried to establis....