ADDL.CIT, Hyderabad v. Sudha Co-operative Urban Bank Ltd.,, Suryapet

ITA 1079/HYD/2009 | 2006-2007
Pronouncement Date: 29-01-2010 | Result: Dismissed

Appeal Details

RSA Number 107922514 RSA 2009
Assessee PAN AAHLS0706K
Bench Hyderabad
Appeal Number ITA 1079/HYD/2009
Duration Of Justice 2 month(s) 24 day(s)
Appellant ADDL.CIT, Hyderabad
Respondent Sudha Co-operative Urban Bank Ltd.,, Suryapet
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 05-01-2010
Next Hearing Date 05-01-2010
Assessment Year 2006-2007
Appeal Filed On 05-11-2009
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL HYDERABAD BENCH 'B' BEFORE SHRI N.R.S.GANESAN AND SHRI CHANDRA POOJARI I.T.A.NO.1079/HYD/2009 ASSESSMENT YEAR 2006-07 ADDL. CIT RANGE 9 HYDERABAD. .. APPELLANT VERSUS SUDHA CO-OPERATIVE URBAN BANK LTD. SURYAPET. ..RESPONDENT (PAN AAHLS0706K) APPELLANT BY : SMT. NIVEDITA BISWAS RESPONDENT BY : SHRI Y.V.BHANU NARAYANA RAO C.O.NO.54/HYD/2009 (IN I.T.A.NO.1079/HYD/2009) ASSESSMENT YEAR 2006-07 SUDHA CO-OPERATIVE URBAN BANK LTD. SURYAPET. .. CROSS OBJECTOR (PAN AAHLS0706K) VERSUS ADDL. CIT RANGE 9 HYDERABAD. .. APPELLANT CROSS OBJECTOR BY : SHRI Y.V.BHANU NARAYANA RAO APPELLANT BY : SMT. NIVEDITA BISWAS O R D E R PER N.R.S.GANESAN JUDICIAL MEMBER: THE REVENUE HAS FILED THIS APPEAL AGAINST THE ORDE R OF THE CIT (APPEALS) VI HYDERABAD DATED 11-8-2009 FOR ASST. YEAR 2006 -07. THE ASSESSEE HAS FILED THE CROSS OBJECTION AGAINST THE VERY SAME ORDER OF THE CIT (A). THEREFORE WE HEARD THE APPEAL AND THE CROSS OBJECTION TOGETHER A ND WE DISPOSE OF THE SAME BY THIS COMMON ORDER. 2. THE ONLY ISSUE THAT ARISES FOR CONSIDERATION IN THE REVENUE'S APPEAL IS WITH REGARD TO DEDUCTION CLAIMED BY THE ASSESSEE UN DER SEC. 80P OF THE 2 INCOME-TAX ACT 1961 IN RESPECT OF INTEREST RECEIV ED ON THE INVESTMENT MADE BY THE ASSESSEE. SHRI Y.V.BHANU NARAYANA RAO LEARN ED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04 THIS TRIBUNAL HAD AN OCCASION TO CONSIDER AN IDENTI CAL ISSUE. THIS TRIBUNAL AFTER CONSIDERING VARIOUS JUDGMENTS OF HIGH COURTS AND TH E APEX COURT ON THE SUBJECT FOUND THAT THE INTEREST INCOME EARNED ON I NVESTMENT IN FDR WITH ANDHRA PRADESH STATE FINANCIAL CORPORATION IS A PAR T OF PROFITS AND GAINS OF BANKING AND THEREFORE ELIGIBLE FOR DEDUCTION UNDE R SEC. 80P OF THE INCOME-TAX ACT. IN THIS CASE ALSO THE ASSESSEE IS CLAIMING DE DUCTION UNDER SEC. 80P IN RESPECT OF THE INTEREST RECEIVED BY THE ASSESSEE ON THE DEPOSIT WITH APSFC. THEREFORE THE ISSUE IS COVERED IN FAVOUR OF THE AS SESSEE. COMING TO THE CROSS OBJECTION THE LEARNED REPRESENTATIVE FOR THE ASSES SEE SUBMITTED THAT THE CROSS OBJECTION IS FILED ONLY TO SUPPORT THE ORDER OF THE CIT (A). 3. SMT. NIVEDITA BISWAS LEARNED DEPARTMENTAL REPRE SENTATIVE FAIRLY CONCEDED THAT THE ISSUE IS COVERED BY THE EARLIER O RDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D REPRESENTATIVE FOR THE ASSESSEE AND THE LEARNED DEPARTMENTAL REPRESENTATIV E AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ONLY ISSUE THAT A RISES FOR CONSIDERATION IS DEDUCTION UNDER SEC. 80P IN RESPECT OF INTEREST REC EIVED ON THE DEPOSIT MADE WITH APSFC. AS RIGHTLY SUBMITTED BY THE LEARNED REP RESENTATIVE FOR THE ASSESSEE THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASST. YEAR 2003-04 IN I.T.A.NO.341/HYD/2007 BY AN ORDER DATED 11-5-2007 CONSIDERED THIS ISSUE ELABORATELY AND FOUND THAT THE INTEREST EARNED ON T HE DEPOSIT WITH APSFC IS A 3 PART OF THE PROFIT AND THEREFORE ELIGIBLE FOR DED UCTION UNDER SEC. 80P. IN VIEW OF THE ORDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR THE ASST. YEAR 2003- 04 IN OUR OPINION THE ASSESSEE IS ENTITLED FOR DE DUCTION UNDER SEC. 80P. BY FOLLOWING THE EARLIER ORDER OF THIS TRIBUNAL AND FO R THE REASONS STATED THEREIN WE UPHOLD THE ORDER OF THE CIT (A). 5. THE ASSESSEE HAS FILED THE CROSS OBJECTION ONLY TO SUPPORT THE ORDER OF THE CIT (A). NO INDEPENDENT ISSUE IS RAISED IN THE CROS S OBJECTION. THEREFORE THE CROSS OBJECTION BECOMES INFRUCTUOUS. 6. IN THE RESULT BOTH THE APPEAL OF THE REVENUE AN D THE CROSS OBJECTION OF THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 29-1-10. SD SD (CHANDRA POOJARI) (N.R.S.GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD 29TH JANUARY 2010. RRRAO. COPY OF THE ORDER FORWARDED TO:- 1. SUDHA CO-OPERATIVE URBAN BANK LTD. H.NO.1-1-65 OP P. MUNICIPAL OFFICE SURYAPET NALGONDA DISTRICT. 2. ADDL. CIT RANGE-9 HYDERABAD. 3. CIT VI HYDERABAD. 4. CIT (A) VI HYDERABAD. 5. DR ITAT HYDERABAD.