9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 908 - AT - Income TaxDeduction u/s. 80P(2)(a)(vi) - Claim denied as society is under the control of NLC Limited and the actual labour member had no independent right carry out the activities of the society - society has provided voting rights to individual/persons who are nominated by the NLC - HELD THAT - As decided in own case 2018 (6) TMI 1097 - ITAT CHENNAI the board of the assessee society is responsible for the affairs of the assessee society and not the NLC board. The ultimate authority of its administration is vested with the General Body of the members. NLC or its nominated members, if any, do not have voting rights in elections of the assessee society as per Rule 22 of its Byelaws. NLC has been coopted as a member only for operational ease and convenience to assist the board of the assessee society in administration, without which the smooth running of the assessee society will be practically difficult. Further, the registration of the society has not been revoked under law for violation of the provisions of TNSCA, 1983. On such facts and circumstances, the order of the CIT(A) does not require any interference and hence the revenue s appeal is dismissed.
Issues Involved:
1. Delay in filing the appeal. 2. Eligibility of the assessee for deduction under Section 80P(2)(a)(vi) of the Income-tax Act, 1961. Detailed Analysis: 1. Delay in Filing the Appeal: The Department's appeal had a delay of 10 days. The assessee attributed this delay to the Covid-19 pandemic and referenced the Hon'ble Supreme Court's decision in suo moto Writ Petition (Civil) No.3/2020 dated 10.01.2022, which excluded the period from 01.03.2020 to 28.02.2022 from the limitation period and allowed an additional 90 days from 01.03.2022 to file belated appeals. The Tribunal considered the contentions and the affidavit explaining the delay and found it proper to condone the delay, admitting the appeal for adjudication. 2. Eligibility for Deduction under Section 80P(2)(a)(vi): The Department was aggrieved by the deletion of the disallowance made by the Assessing Officer (AO) regarding the assessee's claim under Section 80P(2)(a)(vi). The Senior Departmental Representative (DR) acknowledged that the issue was covered in favor of the assessee by a previous decision of the ITAT, Chennai in the assessee's own case for the Assessment Year (AY) 2010-11 (ITA No. 2539/Chny/2017 dated 18.06.2018). The Tribunal reviewed the facts and circumstances, which were identical to those considered in the earlier case. The AO had denied the deduction, arguing that the society was controlled by NLC Limited and that the voting rights given to NLC nominees violated Section 80P(2)(a)(vi). However, the Commissioner of Income Tax (Appeals) [CIT(A)] had followed the decisions of the Hon'ble High Courts of Madras and Kerala, which held that the voting rights in elections were not conferred on NLC or its nominees, thus not violating Section 80P(2)(a)(vi). The Tribunal reiterated the CIT(A)'s findings that: - NLC was co-opted as a member for operational ease, not for controlling the society. - The General Body of members held the ultimate administrative authority. - NLC nominees did not have voting rights in elections as per the society's by-laws. - The society's registration had not been revoked under the Tamil Nadu Co-operative Societies Act, 1983. The Tribunal concluded that there was no change in facts or law to warrant a different view from the previous decision. Hence, the appeal by the Revenue was dismissed. Conclusion: The appeal filed by the Revenue was dismissed, affirming the assessee's eligibility for deduction under Section 80P(2)(a)(vi) and condoning the delay in filing the appeal due to the Covid-19 pandemic. The judgment followed judicial consistency based on the assessee's own case in the previous assessment year.
|
