Vaibhav Nagari Sahakari Pat Sanstha Maryadit, Ichalkaranji V. Income Tax Officer, Ward-1, Ichalkaranji, Ichalkaranji

ITA 280/PUN/2023

AI Insights

The case involves Vaibhav Nagari Sahakari Pat Sanstha Maryadit, a cooperative credit society, which appealed against the order of the CIT(A) in the National Faceless Appeal Centre, Delhi. The dispute centered on the denial of deduction under section 80P of the Income-tax Act, 1961 on interest income earned from various cooperative banks. The Assessing Officer had added this interest income to the total income under 'income from other sources', which was upheld by the CIT(A). However, the Tribunal, referencing a precedent set by the Pune Bench in a similar case, ruled in favor of the assessee, allowing the deduction.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124110 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-04-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 12-03-2023
• Other Referred Cases: Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80P; 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.280/PUN/2023 नधा रण वष / Assessment Year : 2018-19 Vaibhav Nagari Sahakari Pat Sanstha Maryadit, 10/1286(10), Near Sawant Niwas, Opp. Panchvati Theater, Ichalkaranji – 416 115, Maharashtra PAN : AAAAV0226E Vs. ITO, Ward-1, Ichalkaranji Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 20-02-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19. 2. The only issue raised in this appeal is against the denial of deduction u/s.80P of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) on interest income earned from various cooperative banks amounting to Rs.22,52,021/-. Assessee by Shri Pramod Shingte Revenue by Smt. Shraddha Nichal Date of hearing 26-04-2023 Date of pronouncement 26-04-2023 ITA No. 280/PUN/2023 Vaibhav Nagari Sahakari Pat Sanstha Maryadit 2 3. Tersely, the facts of the case are that the assessee is a cooperative credit society engaged in providing credit facilities to its members. The Assessing Officer (AO), during the course of assessment proceedings, found that the assessee had earned interest of Rs.22,52,021/- from various cooperative banks. Invoking provisions of section 80P(2)(d), he disallowed the interest income and the added back to the total income of the assessee under the head ‘income from other sources’. The CIT(A) accorded his imprimatur to the view canvassed by the AO against which the assessee has approached the Tribunal. 4. I have heard the rival submissions and gone through the relevant material on record. It is seen that the question is of granting deduction u/s 80P of the Act on interest income earned from various cooperative banks. The extant issue is no more res integra in view of the catena of decisions delivered by the Pune Benches. The Pune Bench in Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) has held, vide its order dated 07-01-2022, 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 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwise ITA No. 280/PUN/2023 Vaibhav Nagari Sahakari Pat Sanstha Maryadit 3 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 payer of interest is also a Co-operative society registered under the Cooperative Societies Act. Respectfully following the decision of the Division Bench, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest earned from various cooperative banks. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 26 th April, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 26 th April, 2023 सतीश ITA No. 280/PUN/2023 Vaibhav Nagari Sahakari Pat Sanstha Maryadit 4 आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 26-04-2023 Sr.PS 2. Draft placed before author 26-04-2023 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. *