Shri Kalmeshwar Co-op Credit Society Limited, Belgaum V. Assessing Officer, National e-Assessment, Centre, Delhi

ITA 171/PAN/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6378 (ITAT-PANAJI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 09-06-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 08-10-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: LATTE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH : PANAJI [THROUGH VIRTUAL HEARING AT ITAT : PUNE] BEFORE SHRI RAMA KANTA PANDA, VICE PRESIDENT AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A.No.171/PAN./2023 Assessment Year 2018-2019 Shri Kalmeshwar Co-Op Credit Society Limited, 396/4, 5 Main Road, Lal Bahadur Shastri Nagar, Kangralli, B.K. BELAGAVI PIN – 590 010. PAN AAAJS2317N vs. The Assessing Officer, National e-Assessment Centre, Delhi. PIN – 110 001. (Appellant) (Respondent) For Assessee : Shri Latte For Revenue : Shri N. Shrikanth Date of Hearing : 10.06.2024 Date of Pronouncement : 24.06.2024 ORDER PER SATBEER SINGH GODARA, J.M. : This assessee’s appeal, for assessment year 2018- 2019, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2023-24/1054949831(1), dated 08.08.2023, in proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”). Heard both the parties at length. Case file perused. 2. The sole substantive grievance raised by the assessee in the instant appeal is that the learned CIT(A)-NFAC 2 I.T.A.No. 171/PAN./2023 has treated the interest income received from nominal/associate members; cooperative societies/cooperative banks and public sector banks; as ‘Income from other sources’ and denied the claim made by the assessee u/sec.80P of the Act. 3. Suffice to say, there is hardly any dispute between the parties that both the learned lower authorities have inter alia disallowed the assessee’s sec.80P(2)(a)(i) deduction claim(s) representing interest income from nominal/associate members; cooperative societies/cooperative banks and public sector banks; involving varying sums; respectively. So far as the first and foremost question of the Revenue’s endeavour drawn distinction between the assessee’s categories of members from those having substantial voting rights vis-à-vis nominal/associate members is concerned in light of Citizen Co-operative Society Ltd vs. CIT (2017) 84 taxmann. Com 114 (SC) is concerned, their lordships’ recent landmark decision in Mavilayi Service Co-operative Bank Ltd., vs., CIT [2021] 431 ITR 1 (SC) has settled the issue in assessee’s favour that relevant deduction claim had not to be disallowed once the membership(s) duly confirms to the State Cooperative Law. 4. The second issue herein regarding interest income derived from investments made in cooperative societies/ cooperative bank(s) also stand settled in assessee’s favour and 3 I.T.A.No. 171/PAN./2023 against the department in The Hukkeri Taluk Agri Produce Co- operative Marketing Society Ltd., Dist. Belagavi vs. ITO, Ward- 1(1), Belagavi in ITA.No.30/PAN./2018 vide order dated 16.11.2021. The very outcome follows regarding the assessee’s interest income derived from investments made in public sector banks going by The Vaveru Co-operative Rural Bank Ltd., vs. CCIT [2017] 396 ITR 371 (AP). We thus see no reason to uphold the learned lower authorities action disallowing the assessee’s impugned deduction(s). The Revenue’s vehement contentions in support thereof has been rejected. Necessary computation shall follow as per law. Ordered accordingly. 5. This assessee’s appeal is allowed in above terms. Order pronounced in the open Court on 24.06.2024 Sd/- Sd/- [RAMA KANTA PANDA] [SATBEER SINGH GODARA] VICE PRESIDENT JUDICIAL MEMBER Pune, Dated 24 th June, 2024 VBP/- Copy to 1. The applicant 2. The respondent 3. The Pr. CIT, Panaji concerned. 4. D.R. ITAT, Panaji Bench, Panaji. 5. Guard File. //By Order// //True Copy // Sr. Private Secretary, ITAT, Pune Benches, Pune.