M/S Nyati Enclave Co-op Housing Society Limited, Pune V. The Principal Commissioner of Income Tax-4, Pune, Pune

ITA 38/PUN/2023

AI Insights

The case involves M/s. Nyati Enclave Co.op Housing Society Limited, a cooperative housing society, which appealed against the order of the Pr.CIT-4, Pune. The dispute centered on the deduction claimed under section 80P of the Income-tax Act, 1961, specifically concerning the interest income earned from cooperative banks. The Assessing Officer had initially accepted the deduction, but the Pr.CIT later found this decision to be erroneous and prejudicial to the interest of the Revenue, leading to the appeal. The Tribunal examined the applicability of section 80P(2)(d) in light of the cooperative banks' status and previous judicial decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124129 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 10-01-2023
• 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
• Keywords: Set aside
• Section: 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.38/PUN/2023 नधा रण वष / Assessment Year : 2017-18 M/s. Nyati Enclave Co.op Housing Society Limited, S.No.9/3 B/4, Mohammadwadi, Hadapsar, Pune 411 060 Maharashtra PAN : AAAAN6185C Vs. Pr.CIT-4, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 23-03-2022 passed by the ld. Pr.CIT-4, Pune u/s.263 of the Income- tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18. 2. The appeal is time barred by 234 days. The assesee has filed an affidavit explaining the reasons. I am satisfied with the reasons so stated. The delay is, therefore, condoned and the appeal is admitted for disposal on merits. Assessee by Shri Kiran B. Sanmane Revenue by Shri Akhilesh Srivastava Date of hearing 28-02-2023 Date of pronouncement 28-02-2023 ITA No. 38/PUN/2023 2 3. Briefly stated, the facts of the case are that the assessee is a housing Cooperative Society which collects maintenance charges from its members and incurs expenditure on various common facilities provided to the members. The assessee filed the return declaring gross total income at Rs.85,380/-, after claiming deduction of Rs.32,81,779/- u/s.80P of the Income-tax Act, 1961. The case was selected for limited scrutiny under CASS for the reason “large deduction u/c.VI-A”. The Assessing Officer (AO) accepted the deduction claimed by the assessee u/s.80P(2)(d) in respect of the interest earned from cooperative banks. However, the ld. Pr.CIT in the impugned order, held that allowing the deduction by the AO rendered the assessment order erroneous and prejudicial to the interest of Revenue. Aggrieved thereby, the assessee has approached the Tribunal. 4. I have heard both the sides and gone through the relevant material on record. The only issue is of allowing deduction by the AO u/s 80P(2)(d) on interest income earned from co-operative banks. The Pune Benches of the Tribunal 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 ITA No. 38/PUN/2023 3 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 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 as well as co-operative banks are co-operative societies, registered as such. 5. Respectfully following the decision of the Division Bench as discussed supra, I overturn the impugned order and hold that the assessment order did not need any interference. The impugned order, revising the assessment order, is accordingly, set aside. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 28 th February, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; दनांक Dated : 28 th February, 2023 Satish ITA No. 38/PUN/2023 4 आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण 4. SMC, Pune / DR, ITAT, Pune गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 28-02-2023 Sr.PS 2. Draft placed before author 28-02-2023 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. *