AKOLA ZILLA PARISHAD PRATHAMIK SHIKSHAK SAHKARI SANSTHA, AKOLA V. INCOME TAX OFFICER, WARD-1, AKOLA

ITA 190/NAG/2022

AI Insights

The case involves Akola Zilla Parishad Prathamik Shikshak Sahkari Sanstha, the appellant, contesting the denial of section 80P deduction on interest income by the Income Tax Officer, Ward-1, Akola, the respondent. The appeal was against the order of the National Faceless Appeal Centre, Delhi, which upheld the lower authorities' decision. The primary legal issue was whether the interest income derived from the assessee's employees qualifies for deduction under section 80P of the Income Tax Act, 1961. The Tribunal, citing a precedent, ruled in favor of the assessee, allowing the deduction.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 136790 (ITAT-NAGPUR)
• Duration Of Justice: 11 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-11-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 03-02-2011
• Other Referred Cases: ITO vs. Vidarbha Premier Co-Operative Housing Society [2017] 184 TTJ 145 (Nagpur - Trib.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 143(3); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR – VIRTUAL COURT BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.190/NAG/2022 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Akola Zilla Parishad Prathamik Shikshak Sahkari Sanstha, 1, New Radhakisan Plot, Akola- 444001. PAN : AAAAA1881E Vs. ITO, Ward- 1, Akola. Appellant Respondent आदेश / ORDER PER S. S. GODARA, JM: This assessee’s appeal for assessment year 2017-18 arises against the National Faceless Appeal Centre “NFAC”, Delhi’s order dated 20.05.2022 passed in case no. ITBA/NFAC/S/250/2022- 23/1043092697(1), involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short “the Act”. Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte. 2. It emerges with the able assistance coming from the Revenue’s side that the assessee’s sole substantive grievance herein challenges correctness of both the learned lower authorities’ action Assessee by : None Revenue by : Shri G. J. Ninawe Date of hearing : 02.11.2022 Date of pronouncement : 27.12.2022 ITA No.190/NAG/2022 2 denying section 80P deduction pertaining to interest income of Rs.3,70,752/- derived from members/employees. The Revenue’s stand all along of both the lower authorities’ detailed discussion is that the assessee’s employees could hardly be treated as members having availed credit facilities in the regular course of his business. That being the case, I quote this tribunal’s coordinate bench decision in ITO vs. Vidarbha Premier Co-Operative Housing Society [2017] 184 TTJ 145 (Nagpur - Trib.) holding similar interest income as eligible for section 80P deduction being in the nature of business income only. The assessee succeeds in its sole substantive grievance. Necessary computation shall follow as per law. 3. This assessee’s appeal is allowed in above terms. Order pronounced on this 27 th day of December, 2022. Sd/- (S. S. GODARA) JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 27 th December, 2022. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-NFAC, Delhi. 4. The Pr. CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर / DR, ITAT, Nagpur. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.