Rupnarayanpur Samabay Krisi Unnayan ... vs Assessee

I .T.A . N o. 07 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 09 - 20 1 0

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IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA 'SM C' BENCH, KOLKATA

Before Shri George Mathan, Judicial M ember

I.T .A. No . 07 /KOL/ 20 14 Assess ment year : 2009 -2 01 0

Rup na ra ya np ur Sa ma ba y Krishiunna ya n S a mity Ltd .,.............Ap p ella nt C/o. V.N. Purohit & Co., Cha rtered A c counta nts, Dia mond Cha mb e rs, Unit-III, 4 t h Floor, Suit no. 4G, 4, Chowring hee La ne , Kol ka ta -700 016 [PA N : AA AA R 3764 R]

-Vs.-

A ssista nt Commissi one r of Inc ome Ta x,............. ......................Resp on d ent Circle-1, Hoogh ly , A a ya ka r Bha wa n, G .T. Roa d , Khad in a More , P.O. C hinsu rah, Dist. Hooghly-71 2 101

Appeara nces by : N o n e, f or the as sessee Shri K.L. Kanak, JCIT, Sr. D.R., for th e Department

Dat e of concluding t he hearin g : Feb ruary 24, 2015 Dat e of pr onouncing th e order : Feb ruary 24, 2015

Per Ge orge M athan:

This is an app eal filed by the assess ee a gain st th e order of ld. Commissioner of In co me Tax ( Appeals)-XXXVI, Kolkata in Appeal No. 538/CIT(A)-XXXVI /Kol/Ci r-1,Hg./1 1-12 dated 17 .10.2013 for the as se ssm ent yea r 20 09-10 .

2. None rep res ent ed on beh alf of th e a sse ss ee and Sh ri K.L. Kanak, JCIT, Sr. D.R. rep re sen ted on behal f of the Revenu e.

I .T.A . N o. 07 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 09 - 20 1 0

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3. At the time of hearin g, it was sub mitted by the ld. Sr. D.R. that the only issu e in the a ss ess ee's app eal was again st th e action of the ld. CIT(App eals) in enhan cin g the a ss ess ment by an amount of Rs.1 ,97,896/- rep resentin g the in te rest inco me rec eived on the short-term depo sits ou t of the surplus fund with PSU Banks, as the s ame wa s no t eligible for ded uction u nder s ection 80P(2)(a)(i ) of the Income Tax Act. It was the submission th at in view of th e d ecision of the Hon'ble Sup re me Court in the case o f Totga r Coo perativ e Sale Society Limited -vs.- ITO repo rted in (2010) 322 ITR 283, wh en the Hon'ble Supre me Co urt has held that und e r the p rovisions of section 80P(2)(a) of the Act th e inco me so u ght to be tre at ed as eligible for exemption mu st constitute the operational income and not the other inco me which accru es to the society. In the ins tant cas e, the interest i ncome e arned by the as se ssee i s the inte rest on fund s which were not required for the busin es s pu rpo ses and whi ch were kept with PSU B anks and cons equently the s ame fell under th e head "i ncome f ro m other so urc es", which were liable to t ax under section 56 o f the Act.

4. I have con sidered the submi s sions. It is an acc ept ed fact th at the said PS U Bank s are not the m emb ers of the a ssess ee-Soci ety and co nsequently the intere st incom e can not also be attributable to the activ ities of the Society o f carrying on the business of providing c redit facility to the members. Con sequ ently in view of the deci sion of the Hon'ble Supreme Court in the case o f Totgar Coope ra tive Sale Soci ety Limited refe rred to sup ra, th e enh an cement as mad e by th e ld. CIT(App eals) is on th e ri ght fo oti ng and does not call for any interfe rence.

5. In the result, the appeal filed by the ass eessee is dis mi ss ed.

Orde r p ronounced in th e open Co urt on 24 t h Feb rua ry, 2015.

Sd /-

George Mathan (Judicial M embe r) Kolkata, th e 24 t h day of Feb ruary , 2015 I .T.A . N o. 07 / KOL ./ 20 1 4 As ses sm e nt y e ar : 20 09 - 20 1 0

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Co pies to : (1) Rup na ra ya np ur Sa ma ba y Krishiunna ya n S a mity Ltd ., C/o. V.N. Purohit & Co., Cha rtered A c counta nts, Dia mond Cha mb e rs, Unit-III, 4 t h Floor, Suit no. 4G, 4, Chowring hee La ne , Kol ka ta -700 016

(2) A ssista nt Commissi one r of Inc ome Ta x, Circle-1, Hoogh ly , A a ya ka r Bha wa n, G.T. Roa d, Khad in a More , P.O. C hinsu rah, Dist. Hooghly-71 2 101

(3) Comm iss ioner of Income-tax (Appeal s) (4) Com mis sioner of Incom e Tax (5) The Depar tmental R epr es entative (6) Guard Fil e By order

Assistant Registrar Income Tax App ellate Tribunal Kolkata ben ch es, Kolkata Laha/Sr. P.S.