HANUMANTRAO CHOUDHARI KALBHAIRAVNATH NAGRI SAHAKARI PATSANSTHA MARYADIT,PUNE V. THE INCOME TAX OFFICER, WARD-14(3), PUNE

ITA 2780/PUN/2024

AI Insights

The case involves Hanumantrao Choudhari Kalbhairavnath Nagri Sahakari Patsanstha Maryadit, a cooperative society, appealing against the order of the CIT(A)/NFAC which arose from an assessment order under section 143(3) of the Income Tax Act for the Assessment Year 2018-19. The primary issues in the appeal were the denial of deductions under sections 80P(2)(d) and 80P(2)(a)(i) of the Act for interest earned from deposits with cooperative and nationalized banks, respectively. The Tribunal found that the interest earned from cooperative banks should be allowed as a deduction under section 80P(2)(d), referencing a similar case. For the interest from nationalized banks, the matter was remanded back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32556 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Other Referred Cases: Collector Land Acquisition vs. Mst. Kattji (1987) 167 ITR 471 (SC), Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd. vs. ITO in ITA No.1365/PUN/2023 dated 01.01.2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ TRIPATHI
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Condonation of delay; Opportunity of being heard
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2780/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Hanumantrao Choudhari Kalbhairavnath Nagri Sahakari Patsanstha Maryadit, Kunjirwadi, Near Naigaon Phata, Solapur Road, Haveli, Pune- 412110. PAN : AAAAH2316R Vs. Income Tax Department, National e-Assessment Centre, Delhi. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 12.10.2023 which is arising out of the assessment order u/s 143(3) of the Act for Assessment Year 2018-19 framed on 05.04.2021 by the Jurisdictional Assessing Officer. Assessee by : Shri Pramod S. Shingte Revenue by : Shri Manoj Tripathi Date of hearing : 17.03.2025 Date of pronouncement : 19.03.2025 ITA No.2780/PUN/2024 2 2. There is a delay of 163 days in filing of the instant appeal. Application along with affidavit for condonation of delay has been filed. Perusal of the same indicates that the notice sent by the Ld. CIT(A)/NFAC was on the e-mail ID of the previous employee who did not inform the assessee. Considering the fact that the assessee would not have gained by delay in filing of the instant appeal, we in view of the judgement of Hon’ble Apex Court in the case of Collector Land Acquisition vs. Mst. Kattji (1987) 167 ITR 471 (SC) and also in the larger interest of justice condone the delay and admit the appeal for adjudication. 3. Though the assessee has raised six grounds of appeal but the grievance only reveals around two issues. Firstly, denial of deduction u/s 80P(2)(d) of the Act for the interest earned from deposits with cooperative banks and secondly, denial of deduction u/s 80P(2)(a)(i) of the Act for the interest earned from nationalized banks on the deposits which were held for the purpose of carrying on the business of credit cooperative societies. 4. We have heard rival contentions and perused the records placed before us. So far as the issue relating to disallowance of deduction u/s 80P(2)(d) of the Act, we observe that the assessee earned interest of Rs.29,96,097/- from deposits held with the ITA No.2780/PUN/2024 3 cooperative banks. The quantum of interest earned from cooperative banks is not in dispute before us. The issue is no longer res integra that the cooperative banks which are basically cooperative societies, the interest earned on deposits with such cooperative banks has been consistently held to be allowable as deduction u/s 80P(2)(d) of the Act and for this we draw support for the decision of this Tribunal in the 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. In lack of any other binding precedent referred by Ld. DR before us, we are inclined to hold in favour of the assessee and direct the Assessing Officer to allow the deduction to the assessee at Rs.29,96,097/- u/s 80P(2)(d) of the Act for the interest earned from deposits with cooperative banks. 5. So far as the issue relating to deduction u/s 80P(2)(a)(i) of the Act at Rs.2,87,781/-, Ld. Counsel for the assessee prayed that the matter may be restored to Ld. Assessing Officer before whom necessary details could be filed to explain that the alleged interest income from nationalized banks is eligible for deduction u/s 80P(2)(a)(i) of the Act. Since Ld. DR did not oppose this request of the assessee, we are restoring the limited issue of disallowance of ITA No.2780/PUN/2024 4 deduction u/s 80P(2)(a)(i) of the Act at Rs.2,87,781/- to the file of Ld. Jurisdictional Assessing Officer before whom the assessee will furnish necessary details which should be considered by Ld. Assessing Officer for deciding the issue in accordance with law. Needless to mention that proper opportunity of being heard should be provided to the assessee. 6. In the result, the appeal of the assessee is partly allowed as per terms indicated hereinabove. Order pronounced on 19th day of March, 2025. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 19th March, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "