NAGPUR GRIHA NIRMAN & SHETRVIKAS MANDAL KARMACHARI SAHAKARI PAT SANSTHA, NAGPUR V. INCOME TAX OFFICER, WARD1(3), NAGPUR

ITA 121/NAG/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0463 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-10-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 11-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, NAGPUR (AT e-Court, PUNE) BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.121/NAG/2021 नधा रण वष / Assessment Year : 2017-18 Nagpur Griha Nirman & Shetrvikas Mandal Karmachari Sahakari Patsanstha, Mhada Bhawan, Near New Aamdar Niwas, Civil Lines, Nagpur 440 001 Maharashtra PAN : AAAAN6378H Vs. ITO, Ward-1(3), Nagpur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 01-09-2021 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18. Assessee by Shri K.P. Dewani Revenue by Shri G.J. Ninawe Date of hearing 17-10--2022 Date of pronouncement 18-10-2022 ITA No. 121/NAG/2021 A.Y. 2017-18 2 2. The assessee is aggrieved by the denial of deduction u/s.80P in respect of interest income amounting to Rs.5,55,810/- earned from deposits kept with banks. 3. Tersely stated, the facts of the case are that the assessee is a Cooperative society and is engaged in the business of accepting deposits and lending money to its members. It filed the return of income declaring total income at Nil. The case was selected for scrutiny. It was noticed by the AO that the assessee claimed deduction u/s.80P on the income earned as interest amounting to Rs.5,55,810/- on the deposits kept with financial institutions other than cooperative societies. Eventually, the AO, invoking the provisions of section 80P(2)(d), made the disallowance of deduction on such interest income. The assessee remained unsuccessful before the CIT(A), against which the assessee has approached the Tribunal. 4. I have heard both the sides and gone through the relevant material on record. The issue raised in the extant appeal is no more res integra by virtue of series of orders passed by the Pune Tribunal. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) decided the question of availability of ITA No. 121/NAG/2021 A.Y. 2017-18 3 deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon’ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon’ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P on interest income earned from banks. Both the Hon’ble High Courts took into consideration the ratio laid down in the case of Totagar’s Cooperative Sale Society Ltd. (supra). No direct judgment from the Hon’ble jurisdictional High Court on the point having been pointed out, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon’ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). I, therefore, overturn the impugned order on this score and allow the deduction. ITA No. 121/NAG/2021 A.Y. 2017-18 4 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 18 th October, 2022. - Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; दनांक Dated : 18 th October, 2022 Satish आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A) concerned 4. 5. The Pr.CIT concerned िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, Nagpur / DR, Nagpur 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 121/NAG/2021 A.Y. 2017-18 5 Date 1. Draft dictated on 17-10-2022 Sr.PS 2. Draft placed before author 18-10-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *