INCOME TAX OFFICER, WARD-8(3), PUNE, AKURDI PUNE V. M/S. TATA MOTORS KARMACHARI SAHAKARI PATPEDHI LIMITED , PIMPRI PUNE

ITA 2695/PUN/2024

AI Insights

The case involves appeals by the Income Tax Officer, Ward-8(3), Pune against M/s. Tata Motors Karmachari Sahakari Patpedhi Limited concerning the eligibility of interest income for deductions under sections 80P(2)(d) and 80P(2)(a)(i) of the Income Tax Act, 1961 for the Assessment Years 2018-19 and 2020-21. The primary contention was whether the interest income from deposits with Cooperative Banks and from staff members who are also members of the society qualifies for deductions under the specified sections. The CIT(A) had ruled in favor of the respondent-assessee, which was contested by the Revenue in the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41395 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2020-2021
• 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: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: CATENA OF DECISIONS. WE

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2694 and 2695/PUN/2024 Assessment Year : 2018-19 and 2020-21 Income Tax Officer, Ward-8(3), Pune Vs. M/s. Tata Motors Karmachari Sahakari Patpedhi Limited, H5 3rd Floor, C/o. Tata Motors, Pimpri PFSO, Pune 411 018 Maharashtra PAN : AABAT7682B Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeals at the instance of Revenue pertaining to Assessment Years 2018-19 and 2020-21 are directed against the separate orders both dated 21.10.2024 framed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) which inturn are arising out of the respective Assessment orders. 2. When the appeals were called for, none appeared on behalf of the respondent-assessee despite due service of notice of hearing. Further, a common issue raised by the Revenue in these appeals has already been decided by this Tribunal in faovur of the respondent-assessee by catena of decisions. We therefore proceed to dispose of these appeals with the able assistance from the ld. Departmental Representative. Appellant by : Shri Arvind Desai Respondent by : None Date of hearing : 13.02.2025 Date of pronouncement : 20.03.2025 ITA No.2694 and 2695/PUN/2024 M/s. Tata Motors Karmachari Sahakari Patpedhi Limited 2 3. Perusal of the impugned orders for the assessment years under appeal indicate that the issue of deduction u/s.80P(2)(d) of the Act which has been assailed by the Revenue in the common grounds of appeal for the A.Y. 2018-19 and 2020-21 has been decided by the ld.CIT(A) in favour of the respondent assessee placing reliance on various decisions of Coordinate Benches and this Tribunal taking consistent view that interest earned from deposits with Cooperative banks is eligible for deduction u/s.80P(2)(d) of the Act. Ld. Departmental Representative could not place any other binding precedent on this issue. 4. We have heard the ld. Departmental Representative and perused the record placed before us. In the instant appeals, the Assessing Officer disallowed the interest income of Rs.4,13,73,350/- for the A.Y. 2018-19 and Rs.5,50,07,830 for the A.Y. 2020-21 earned out of the Fixed deposits/Investments made with Cooperative Banks treating the same as Income from Other Source which came to be allowed by the Ld.CIT(A). Revenue has approached the Tribunal for both the assessment years under appeal assailing the finding of ld.CIT(A). 5. 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 ITA No.2694 and 2695/PUN/2024 M/s. Tata Motors Karmachari Sahakari Patpedhi Limited 3 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. 6. In the light of above, we hold that ld.CIT(A) has rightly held that the respondent-assessee is entitled to deduction u/s.80P(2)(d) of the Act and accordingly the Assessing Officer is directed to allow the claim made by the respondent-assessee u/s.80P(2(d) for both the assessment year under appeal. Common grounds of appeal raised by the Revenue on this issue are dismissed. 7. Another issue solely raised for the A.Y. 2018-19 by the Revenue is that ld.CIT(A) erred in giving the benefit of deduction u/s.80P(2)(a)(i) of the Act for the net interest income of Rs.1,30,654/-. We notice that ld.CIT(A) has given the relief after examining the facts of the case and that the staff members were also the members of the society and therefore the interest income earned from the staff members is also eligible for deduction u/s. 80P(2)(a)(i) of the Act. Before us, ld. Departmental Representative failed to controvert this fact. We ITA No.2694 and 2695/PUN/2024 M/s. Tata Motors Karmachari Sahakari Patpedhi Limited 4 therefore fail to find any infirmity in the finding given by the ld.CIT(A). This ground by the Revenue is dismissed. 8. In the result, both the appeals of the Revenue are dismissed. Order pronounced on this 20th day of March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 20th March, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "