Shree Laxmi Co op Savings & Credit Society Ltd, Surat V. ACIT Circle-3(2), Surat, Surat

ITA 200/SRT/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1714 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 20-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT “SMC” BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER आ.अ.सं./ITA No.200/SRT/2024 (AY 2017-18) (Hearing in Physical Court) Shree Laxmi Co-Op. Savings & Credit Society Ltd., 1, 1st Floor, Tullsi Nivais, 1/H Ishwarnagar, Katargam Road, Gotalawadi, Surat-395004 [PAN No: AACAS 5691 N] Vs Assistant Commissioner of Income Tax Circle-3(2), Surat, Aaykar Bhawan, Majura Gate, Surat- 395001 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Rushi Parekh, CA राजˢ की ओर से /Revenue by Shri Vinod Kumar, Sr-DR अपील पंजीकरण/Appeal instituted on 21.02.2024 सुनवाई की तारीख/Date of hearing 10.06.2024 उद्घोषणा की तारीख/Date of pronouncement 10.06.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of Commissioner of Income Tax (Appeal)/Addl/JCIT(A)-5, Kolkata [for short to as “Ld. JCIT(A)”] dated 17.01.2024 for assessment year 2017-18, which in turn arises out of assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 26.11.2019. The assessee has raised the following grounds of appeal:- “1.That the CIT(A) erred in confirming the disallowance of deduction u/s 80P(2)(d) on interest received from Co-Op Bank of Rs.2,08,760/-. 2. Alternatively that CIT(A) erred in not allowing deduction u/s 80P(2)(a)(i) of Rs.2,08,760/-. 3. Alternatively that CIT(A) erred in not taking net interest income received from Co-Op. Bank after deducting proportionate expenses attributable to the income. 4. That the addition of Rs.2,08,760/- may kindly be deleted. ITA No.200/SRT/2024 (A.Y 17-18) Shree Laxmi Co-Op.Savings & Credit Society Ltd. 2 5. The appellant craves leave to add, amend, alter vary and/or withdraw any or all the above grounds appeal.” 2. Rival submissions of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that main ground of appeal raised by assessee is against the disallowance of deduction under section 80P(2)(d) of the Act on account of interest received from co- operative bank of Rs.2,08,760/-. The Ld.AR of the assessee submits that there is no dispute so far as amount of interest income earned from Surat District Co-Operative Bank. This bench in a series of decisions has held that Co-operative Banks are primarily co-operative society and the interest earned by such co-operative bank is exempt under section 80P(2)(d). To support his submission, Ld. AR of the assessee relied on the decision of Hon’ble jurisdictional High Court in the case of The Surat Vankar Sahakari Sangh Ltd. vs. ACIT in Tax Appeal Nos.93 to 96 of 2008 dated 12.07.2016 and recent decision of Division Bench of Surat Tribunal in the case of Althan Bhatar Co- operative Credit Society Ltd. vs. ACIT in ITA No.143/SRT/2024 dated 30.05.2024. The Ld. AR of the assessee further submits that he has already filed details of computation of total income along with bifurcation of interest income received from Surat Co-Operative Bank, which is otherwise not in dispute. 3. On the other hand, Ld. Sr-DR for the Revenue supported the order of lower authorities 4. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. I find that grounds of ITA No.200/SRT/2024 (A.Y 17-18) Shree Laxmi Co-Op.Savings & Credit Society Ltd. 3 appeal raised by assessee is squarely coved by a series of decisions of Surat Tribunal and other benches of Tribunal decisions and decision of Hon’ble jurisdictional High Court in the case of The Surat Vankar Sahakari Sangh Ltd. (supra). I find that by following various earlier decisions, the Division Bench of this Bench held in a latest decision in the case of Althan Bhatar Co- operative Credit Society Ltd. (supra) also allowed similar relief to that assessee is allowing similar deduction under section under section 80P(2)(d). In view of the aforesaid factual and judicial precedent, grounds of appeal raised by assessee in Ground No.1 is treated as allowed. Considering the fact that I have already allowed ground No.1, itself, therefore adjudication of alternative grounds have become academic in nature. 5. In the result, the appeal of the assessee is allowed. Order pronounced in open court at the time of hearing on 10 th June, 2024. Sd/- (PAWAN SINGH) [Ɋाियक सद˟ JUDICIAL MEMBER] सूरत /Surat, Dated: 10/06/2024 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True Copy // Senior Private Secretary/Assistant Registrar, ITAT, Surat