ANNAPURNA NAGARI SAHKARI PATHSANTHA MARYADIT ,YAWAL V. ITO, WARD1(4), JALGAON, JALGAON

ITA 313/PUN/2025

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The case involves Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal, a cooperative society, appealing against the order of the National Faceless Appeal Centre, which denied them a deduction on interest income earned from deposits with Cooperative Banks for the Assessment Year 2013-14. The primary legal issue was whether the interest income of Rs.1,02,95,103 from these deposits qualifies for deduction under section 80P(2)(d) of the Income Tax Act, 1961. The Tribunal referenced a series of decisions, including a previous ruling in favor of the appellant for a different assessment year, to conclude that the income is indeed deductible as it is derived from investments with Cooperative Societies.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314084 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Other Referred Cases: Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd. vs. ITO, The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTAVA
• Assessee Lawyers: NIKHIL PATHAK
• Keywords: Set aside; Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.313/PUN/2025 Assessment Year : 2013-14 Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal, Main Road, Yawal – 425301 Maharashtra PAN : AAAJA0758K Vs. ITO, Ward-1(4), Jalgaon Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee relating to A.Y. 2013-14 is directed against the order dated 09.12.2024 framed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Assessment Order dated 25.03.2022 passed u/s.147 r.w.s.144 r.w.s.144B of the Act. 2. At the outset, Ld. Counsel for the assessee requested for not pressing the legal issues raised in Grounds of appeal No. 1 to 4 and the same are dismissed as ‘Not pressed’. In remaining Grounds 5 to 8, the only issue is that ld.CIT(A) has not allowed the deduction u/s.80P(2)(d) of the Act for the interest income of Rs.1,02,95,103/- earned on deposits/investments with Cooperative Banks. Appellant by : Shri Nikhil Pathak Respondent by : Shri Akhilesh Srivastava Date of hearing : 22.04.2025 Date of pronouncement : 07.05.2025 ITA No.313/PUN/2025 Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal 2 3. Ld. Counsel for the assessee submitted that the issue stands squarely covered in favour of the assessee by plethora of decisions and referred to the decision of this Tribunal in assessee’s own case for A.Y. 2020-21 in ITA No.2471/PUN/2024 order dated 24.03.2025. 4. On the other hand, Ld. Departmental Representative submitted that assessee failed to furnish any details before the lower authorities and the matters needs to be restored to the file of ld. Assessing Officer. 5. We have heard the rival submissions and perused the record placed before us. There is no dispute to the fact that assessee has earned interest income of Rs.1,02,95,103/- from deposits/investments with Cooperative Banks. This fact has been accepted by the Assessing Officer in the assessment order also. Admittedly, assessee has not filed the requisite details before ld.CIT(A). We however considering the fact that the issue regarding allowability of deduction u/s.80P(2)(d) of the Act for the interest earned from Cooperative Banks is no longer res integra as the very same issue has been decided by this Tribunal in catena of decisions and in assesse’s own case for A.Y. 2020-21 holding that the assessee is eligible for deduction u/s.80P(2)(d) of the Act as the Cooperative Banks are basically Cooperative Societies. For the sake of brevity, the finding given in ITA No.2471/PUN/2024 is reproduced below : “7. We have heard both the sides and perused the record placed before us. In the instant case, the Assessing Officer disallowed the interest income of Rs.1,63,98,998/- earned out of the Fixed deposits/Investments made with Cooperative Banks ITA No.313/PUN/2025 Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal 3 treating the same as Income from Other Source. Ld.CIT(A) dismissed the appeal in limine without discussing anything on merits of the issues and on the ground that the assessee has not provided plausible explanation for admission of additional evidences. 8. Section 80P(2)(d) of the Act provides that the sum received in respect of any income by way of interest or dividend derived by Cooperative Society from its investment with any other Cooperative Society, the whole of such income is eligible for deduction u/s.80P of the Act. we find that this issue is no more res integra as the Coordinate Benches of this Tribunal has been consistently holding that the interest income earned out of the FDs/Investments kept with Cooperative Banks is allowable u/s.80P(2)(d) of the Act. We find that this Tribunal in case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd., Vs. ITO in ITA No.1365/PUN/2023, dated 01.01.2024 dealing with similar issue after placing reliance on another decision of this Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No.84/PAN/2018, dated 27.05.2022 has held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s.80P(2)(d) of the Act as Cooperative Banks are basically Cooperative Societies only but have turned into Bank on getting necessary banking license. 9. Respectfully following the above referred decisions taking consistent view along with considering the facts of the case, where the assessee made investment with the Cooperative Banks we hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the interest income earned from Cooperative Banks at Rs.1,63,98,998/-. Findings of the ld. CIT(A) is set-aside and the Assessing Officer is directed to allow the claim made by the assessee. Effective grounds of appeal raised by the assessee are allowed.” 6. Respectfully following the same, we hold that deduction of Rs.1,02,95,103/- u/s.80P(2)(d) of the Act claimed by the assessee on the interest earned from deposits/Investments with Cooperative Banks deserves to be allowed. Relevant finding of ld.CIT(A) on merits is set aside and grounds of appeal No.5 to 8 raised by the assessee are allowed. ITA No.313/PUN/2025 Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal 4 7. Ground No.9 raised by the assessee is general in nature and needs no adjudication. 8. In the result, appeal of the assessee is partly allowed. Order pronounced on this 07th day of May, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 07th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "