SONAI GRAMIN BIGARSHETI SAH PATSANSTHA MARYADIT, Indapur, Pune V. Principal CIT(Central), Pune

ITA 203/PUN/2022

AI Insights

The case involves Sonai Gramin Bigarsheti Sah. Patsanstha Maryadit, a cooperative credit society, which appealed against the order of the PCIT, Central, Pune. The PCIT had set aside the AO's assessment order for the assessment year 2017-18, which had allowed a deduction under section 80P on interest income from deposits with cooperative banks. The Tribunal examined whether the PCIT was correct in finding the AO's order erroneous and prejudicial to the interest of the Revenue. The Tribunal concluded that the deduction was rightly allowed by the AO, referencing similar cases and the definition of a cooperative society under section 2(19) of the Act.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 137507 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-12-2022
• Assessment Year: misc
• Appeal Filed On: 06-02-2023
• Other Referred Cases: The Sesa Goa Employees Coop. Credit Society Ltd. Vs. ACIT (ITA No.203/PUN/2019, order dated 16-11-2022)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 2(19)

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 आयकर अपील सं. /ITA No.203/PUN/2022 नधा रण वष / Assessment Year : 2017-18 Sonai Gramin Bigarsheti Sah.Patsanstha Maryadit, At Post Gokhali, Tal. Indapur, Dist. Pune – 413 106 PAN : AAAAY1535F Vs. Pr.CIT (Central), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal filed by the assessee is directed against the order dated 28-03-2022 passed by the Principal Commissioner of Income- tax (PCIT), Central, Pune u/s.263 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18. 2. Briefly stated, the facts of the case are that the assessee is a Cooperative credit society engaged in providing credit facilities to its members. The assessee filed return declaring total income at Nil after claiming deduction u/s.80P for a sum of Rs.1,39,60,260/-. The Assessee by Shri Rajkumar Doshi Revenue by Shri Rajarshi Dwivedy Date of hearing 12-12-2022 Date of pronouncement 13-12-2022 ITA No. 203/PUN/2022 Sonai Gramin Bigarsheti Sah Patsanstha Maryadit 2 assessment was completed by the Assessing Officer (AO) u/s.143(3) at the declared income. The ld. PCIT, on examination of records, observed that the assessee claimed deduction u/s.80P to the tune of Rs.12,64,247/- on interest income earned from deposits kept with cooperative societies. He, therefore, opined that, the assessment order, allowing deduction u/s.80P on such interest income, was erroneous and prejudicial to the interest of the Revenue. Setting aside the assessment order, he directed the AO to pass the assessment order afresh as per law after allowing opportunity of hearing to the assessee. Aggrieved thereby, the assessee has approached the Tribunal. 3. We have heard both the sides and gone through the relevant material on record. The assessee is admittedly a Cooperative credit society engaged in providing credit facilities to its members. The ld. PCIT has held the assessment order to be erroneous and prejudicial to the interest of the Revenue only on the ground that the claim of deduction u/s.80P on interest income amounting to Rs.12,64,247/- was not in order. In this regard, it is observed that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section ITA No. 203/PUN/2022 Sonai Gramin Bigarsheti Sah Patsanstha Maryadit 3 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwise eligibility u/s 80P(2)(d) of the Act of a co-operative society on interest income on investments/deposits parked with a co-operative bank, which is a registered co-operative society as per section 2(19) of the Act, defining co-operative society to mean a co- operative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force. The assessee is also a Co-operative society registered. 4. Similar view has been taken by the Pune Benches of the Tribunal in several cases including The Sesa Goa Employees Coop. Credit Society Ltd. Vs. ACIT (ITA No.203/PUN/2019, order dated 16-11-2022). In view of the foregoing discussion, we are satisfied that the AO rightly allowed deduction u/s.80P(2)(a) on interest income and the ld. PCIT was not justified in interfering with the same. The impugned order is set aside. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 13 th December, 2022. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 13 th December, 2022 Satish ITA No. 203/PUN/2022 Sonai Gramin Bigarsheti Sah Patsanstha Maryadit 4 आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. 4. 5. The CIT(A) concerned The CIT concerned िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “B” / DR ‘B’, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 12-12-2022 Sr.PS 2. Draft placed before author 12-12-2022 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. *