Namdeo Kadam Gramin Bigar Sheti Sahakari Pat Sanstha Ltd, Satara V. Income Tax Officer, Ward-3, Satara, Satara

ITA 471/PUN/2023

AI Insights

The case involves Namdeo Kadam Gramin Bigar Sheti Sahakari Pat Sanstha Ltd., a cooperative society, appealing against the orders of the CIT(A) which disallowed deductions claimed under section 80P of the Income-tax Act on interest income from cooperative banks for the assessment years 2018-19 and 2020-21. The primary legal issue was whether the interest income from cooperative banks qualifies for deduction under section 80P(2)(d) despite the provisions of section 80P(4) which restricts certain deductions for cooperative banks. The Tribunal referenced a precedent from the Pune Bench in Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT, which supported the assessee's position.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124193 (ITAT-PUNE)
• Duration Of Justice: 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 23-04-2023
• 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 Nos.471 & 472/PUN/2023 नधा रण वष / Assessment Years : 2018-19 & 2020-21 Namdeo Kadam Gramin Bigar Sheti Sahakari Pat Sanstha Ltd., A/P. Anpatwadi, Tal.Koregaon, Dist. Satara – 415 002 Maharashtra PAN : AAAAN3163G Vs. ITO, Ward-3, Satara Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: These two appeals by the assessee arise out of the ex parte orders dated 23-03-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment years 2018-19 & 2020-21. 2. It is seen that the assessment orders in these cases were passed u/s.143(3) of the Act disallowing the amount of deduction claimed by the assessee u/s.80P amounting to Rs.22,40,771/- and Rs.26,85,471/- towards interest income earned by the assessee from Assessee by : Ms. Deepa Khare Revenue by : Shri Suresh Gaikwad Date of hearing 17-05-2023 Date of pronouncement 18-05-2023 ITA Nos.471 & 472/PUN/2023 2 co-operative banks. The ld. CIT(A) affirmed the view point of the AO for both the years under consideration. Aggrieved thereby, the assessee has approached the Tribunal. 3. I have heard both the sides and gone through the relevant material on record. It is seen that the issue assailed in both the appeals under consideration 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 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- ITA Nos.471 & 472/PUN/2023 3 operative society registered under the Cooperative Societies Act. Respectfully following the decision of the Division Bench, I overturn the impugned orders and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest earned from various cooperative banks. 4. In the result, both the appeals are allowed. Order pronounced in the Open Court on 18 th May, 2023. Sd/- ( R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 18 th May, 2023 सतीश 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 ITA Nos.471 & 472/PUN/2023 4 Date 1. Draft dictated on 17-05-2023 Sr.PS 2. Draft placed before author 18-05-2023 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. *