Income tax Officer, V. Swa Ashokrao Bankar Nagari Sahakari Patsanstha Maryadit, Nashik

ITA 155/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6072 (ITAT-PUNE)
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 23-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARISES OUT OF PASSED
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.155/PUN/2017 / ASSESSMENT YEAR : 2013-14 ITO, WARD-1(1), NASHIK VS. SWA ASHOKRAO BANKAR NAGARI SAHAKARI PATSANSTHA MARYADIT, SANSKRUTI, OPP. POLICE STATION PIMPALGAON (B), TAL NIPHAD, DIST. NASHIK 422 209 PAN : AAAAA2084K (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PAS SED BY THE CIT(A)-1, NASHIK ON 04-11-2016 IN RELATION TO THE ASSES SMENT YEAR 2013-14. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST NOT ALLOW ING DEDUCTION U/S.80P(2)(A)(I) OF THE INCOME-TAX ACT, 1961 (H EREINAFTER APPELLANT BY SHRI SUDHENDU. DAS RESPONDENT BY SHRI PRAMOD SHINGTE DATE OF HEARING 22-01-2019 DATE OF PRONOUNCEMENT 23-01-2019 ITA NO.155/PUN/2017 SWA ASHOKRAO BANKAR NAGARI SAHAKARI PATSANSTHA MARYADIT 2 ALSO CALLED AS THE ACT) ON INTEREST INCOME OF RS.72,93,77 0/- EARNED FROM BANKS OTHER THAN COOPERATIVE BANKS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT, THE ASSESS EE IS A COOPERATIVE SOCIETY ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS. RETURN WAS FILED DECLARING NIL INCOME AFTER AVAILIN G DEDUCTION U/S.80P. THE AO OBSERVED THAT THE ASSESSEE EARN ED INTEREST INCOME OF RS.72,93,770/- FROM BANKS, WHICH, IN H IS OPINION WAS NOT ELIGIBLE FOR DEDUCTION U/S.80P. HE, THEREFORE, MADE DISALLOWANCE OF INTEREST INCOME TO THIS EXTENT WHICH VIEW CAME TO BE AFFIRMED IN THE FIRST APPEAL. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ONLY ISSUE IN THIS APPEAL IS WHETHER INTEREST INCOME EARNED FROM FDRS WITH THE NATIONALIZED BANKS IS ELIGIBLE FOR DEDUCTION U/S 80P OF THE ACT? THE PUNE BENCH OF TH E TRIBUNAL IN THE CASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT VS. ITO (ITA NO.604/PN/2014) HAS ALLOWED DEDUCTION U/S 80P OF THE ACT IN SIMILAR CIRCUMSTANCES VIDE ITS ORDER DATED 19-08-2015. IN THAT CASE, THE PUNE BENCH DISCUSSED THE CONTRARY VIEWS EXPRESSED BY THE HONBLE KARNATAKA HIGH CO URT IN TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. VS. ITO ITA NO.155/PUN/2017 SWA ASHOKRAO BANKAR NAGARI SAHAKARI PATSANSTHA MARYADIT 3 (2015) 230 TAXMANN 309 (KAR.) ALLOWING THE DEDUCTION U/S. 80P ON INTEREST INCOME AND THE HONBLE DELHI HIGH COURT IN MANTOLA COOPERATIVE THRIFT CREDIT SOCIETY LTD. VS. CIT (2014) 110 DTR 8 9 (DELHI) NOT ALLOWING DEDUCTION U/S.80P ON INTEREST INCOME EARNED FROM BANKS UNDER SIMILAR CIRCUMSTANCES. BOTH THE HONBLE HIGH COURTS HAVE TAKEN INTO CONSIDERATION THE RATIO LAID DOWN IN THE CASE OF TOTGARS COOPERATIVE SALE SOCIETY LTD. 322 ITR 283 (SC) . THERE BEING NO DIRECT JUDGMENT FROM THE HONBLE JURISDICTIONAL HIGH COURT ON THE POINT, THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) PREFERRED TO GO WITH THE VIEW TAKEN IN FAVOUR OF THE ASSESSEE BY THE HONB LE KARNATAKA HIGH COURT IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. (SUPRA). IN THE ABSENCE OF THERE BEING NO CHANGE IN THE LEGAL POSITION PREVAILING ON THIS ISSUE AFTER THE PASSING OF THE ORDER BY THE PUNE BENCH OF THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) AND A HOST OF OTHER ORDERS REITERATING THE SIMILAR VIEW, RE SPECTFULLY FOLLOWING THE PRECEDENT, WE APPROVE THE IMPUGNED ORDER IN ALLOWING DEDUCTION U/S.80P ON THE INTEREST INCOME. ITA NO.155/PUN/2017 SWA ASHOKRAO BANKAR NAGARI SAHAKARI PATSANSTHA MARYADIT 4 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JANUARY, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 23 RD JANUARY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-1, NASHIK 4. 5. THE PR.CIT-1, NASHIK , , / DR B, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SEC RETARY , / ITAT, PUNE ITA NO.155/PUN/2017 SWA ASHOKRAO BANKAR NAGARI SAHAKARI PATSANSTHA MARYADIT 5 DATE 1. DRAFT DICTATED ON 22-01-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 22-01-2019 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. *