2019 (12) TMI 1288 - HC - Income Tax

Deduction u/s.80P(2)(a)(i) - Appellate Tribunal treating the Associate members as regular members while deciding that the assessee is eligible to claim deduction u/s.80P(2)(a)(i) - HELD THAT - Senior standing counsel would submit that the issue raised in these Appeals are already covered by the judgment passed by this Court in the Assessee s own case in 2016 (8) TMI 1427 - MADRAS HIGH COURT upholding the order of the income tax Appellate Tribunal. Since the issue has already been decided against the revenue, following the same, these Appeals are also dismissed.

Summary

Issues:
1. Whether the Appellate Tribunal correctly treated Associate members as regular members for claiming deduction under section 80P(2)(a)(i) of the Income Tax Act?
2. Whether the ITAT was justified in disregarding the decision of the Hon'ble Supreme Court in a similar case?

Analysis:
1. The first issue pertains to the treatment of Associate members as regular members for the purpose of claiming a deduction under section 80P(2)(a)(i) of the Income Tax Act. The Revenue contended that the Appellate Tribunal erred in law by considering Associate members as regular members. The Tribunal's decision was challenged by the Revenue through the present appeals. The core question was whether the Tribunal's interpretation was correct in the given circumstances.

2. The second issue involved the ITAT's rejection of the decision of the Hon'ble Supreme Court in a case with similar facts. The Revenue questioned the correctness of ITAT's decision to disregard the Supreme Court's ruling in the case of Citizen's Cooperative Society Ltd., Vs. ACIT (387 ITR 1). The crux of this issue was whether the ITAT had valid reasons for not following the Supreme Court's decision and whether such deviation was justified under the law.

3. Upon hearing the arguments, Mr. J. Narayanaswamy, the learned senior standing counsel, pointed out that the issues raised in the present appeals had already been addressed in a previous judgment of the Court in the Assessee's own case in TCA.Nos.786 to 789 of 2015 dated 10.08.2016. The Court had upheld the order of the Income Tax Appellate Tribunal in that case. Given the precedent set in the earlier judgment against the Revenue, the Court dismissed the current appeals. Consequently, no costs were awarded, and the connected Miscellaneous Petition was also closed as a result of the dismissal of the appeals.