GOA UNIVERSITY EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LIMITED,DONA PAULA V. DEPUTY COMMISSIONER OF INCOME TAX, CPC, BENGALURU

ITA 133/PAN/2024

AI Insights

The case involves the Goa University Employees Co-operative Society Ltd., which appealed against the order of the CIT(A) sustaining the disallowance of a deduction claim under section 80P of the Income Tax Act. The primary contention was whether the interest income derived from deposits with a cooperative bank was eligible for deduction under section 80P(2)(d). The Assessing Officer initially disallowed the deduction, which was upheld by the CIT(A). The Tribunal decided to remit the matter back to the CIT(A) for a fresh decision, considering an ongoing appeal against a similar disallowance under section 143(3).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471238 (ITAT-PANAJI)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 06-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 20-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 250; 143(1); 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHIR PAVAN KUMAR GADALE, JUDICIAL MEMBER 8& SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA No. 133/PAN/2024 (A.Y: 2018-19) DCIT, CPC Bengaluru-560500. Karnataka. GoaUniversityEmployees | Vs. Co-operative Credit Society Limited, ~ Dona Paula, Panaji-403006.Goa. rare oat F./sitatganmt F./PAN/GIR No. : AAALG1975G | Appellant |. [Respondent Shri.S.J.Kamat.AR Shri.Ravindra Hattalli,Sr.DR 06.11.2024 08.11.2024 aig / ORDER The appeal is filed by the assesse against the order of the Addl/JCIT (A)-11 Mumbai passed U/sec 143(1) and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the order of the CIT(A) on sustaining the disallowance of claim of deduction under section 80P of the Act. 2. The brief facts of the case are that, the assessee is a cooperative society and has filed the return of income for the A.Y 2018-19 on 30.08.2018 disclosing iat ITA No. 133/PAN/2024 Goa University EmployeesCo. Operative Society Ltd. Panaji wm a total income of Rs.Nil after claiming deduction u/sec 80P of the Act of Rs.37,34,147/-. Subsequently the return of income was processed u/s 143(1) of the Act. Whereas the AO has not allowed deduction of claim u/s 80(P)(2)(d) of the Act of Rs.33,50,670/- - and passed the order u/sec 143(1) of the Act dated 01.10.2019. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). Whereas the _ CIT(A) considered the grounds of appeal, submissions of the assessee and findings of the AO and has confirmed the action of the A.O and dismissed the assessee appeal. Aggrieved -by the -order -of -the-CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that, the CIT(A) has erred in confirming the action of the AO and treating the interest income from cooperative banks is ineligible for deduction u/s 80P(2)(d) of the Act overlooking the submissions of the assessee. Further the CIT(A) has erred in observing that, subsequently the assessing officer has passed the Goa University ii hi aka Poutanen tidirana order u/sec143(3) of the Act dated 16-02-2021 with similar disallowance and hence the grounds of appeal raised against the order under section 143(1) of the Act does not survive. The Ld.AR mentioned that the assesse has filed appeal against order u/sec 143(3) of the Act before the CIT(A) and is pending. The assesse has a good case on merits and_ shall substantiate with the material evidences. Per Contra, the Ld. DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue emphasized by the Ld.AR is in respect of granting of deduction u/sec 80P(2)(d) of the Act to the Cooperative Society..The Ld..AR submitted. that the interest income derived by a co-operative society from its deposits with the co-operative bank would be entitled for deduction U/sec 80P(2)(d) of the Act. The co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act. Whereas the assesse has filed appeal against order u/sec 143(3) of the Act with similar disallowance before the CIT(A) and is pending. Prima facie the disputed issue in the present -appeal.is on ITA No. 133/PAN/2024 Goa University EmployeesCo. Operative Society Ltd.Panaji -4- the same disallowance. Therefore, we considering the facts and principles of natural justice , shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate airesh along the appeal filed against the order u/sec143(3) of the Act. And the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. And we allow the grounds of appeal of the assesse for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 08.1 1.2024. . Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 08/11/2024 te ITA No. 133/PAN/2024 Goa University EmployeesCo. Operative Society Ltd. Panaji 5. 3TeRt COM IGE 3a Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, 6. Guard File aréempart/ BY ORDER, Peale We //True Copy// (Asst. Registrar) ITAT, Panaji Draft dictated on Draft placed before author aa : Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. 5. Approved Draft comes to the Sr.PS/PS |6. | Kept for pronouncement on File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk. a ae a | | Date of dispatch of Order. Dictation Pad is enclosed "