M/S Hingulambika Co- Operative Thrift & Credit Society Limited, Pune V. Principal Commissioner of Income Tax, Pune-4, Pune

ITA 524/PUN/2023

AI Insights

The case involves M/s. Hingulambika Co-operative Thrift and Credit Society Limited, which appealed against the order of the Pr. CIT, Pune -4, concerning the assessment year 2017-18. The primary issue was the allowability of a deduction under section 80P of the Income-tax Act, 1961, on interest income earned from deposits with cooperative banks. The Pr. CIT had invoked section 263, claiming the original assessment was erroneous and prejudicial to the Revenue's interests. The Tribunal, referencing similar cases and the definition of a cooperative society under section 2(19) of the Act, found that the society was entitled to the deduction claimed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137719 (ITAT-PUNE)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 01-05-2023
• 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
• Assessee Lawyers: KHUSHAL V. SHETH; DEVEN A. SHETH
• Section: 263; 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘A’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.524/PUN/2023 नधा रण वष / Assessment Year : 2017-18 M/s. Hingulambika Co-operative Thrift and Credit Society Limited, 966, Koteshwar Krushnbai Apts, Sadashiv Peth, Pune – 411 030 Maharashtra PAN : AAAAH0361A Vs. Pr. CIT, Pune -4 Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dated 28-03-2022 passed by the Pr.CIT in National Faceless Appeal Centre (NFAC) 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 340 days. The assessee has filed an affidavit explaining the reasons for delay. We are satisfied with the reasons so stated. The delay in filing the Assessee by Shri Khushal V. Sheth & Shri Deven A. Sheth Revenue by Shri Keyur Patel, CIT-DR Date of hearing 31-05-2023 Date of pronouncement 01-06-2023 ITA No.524/PUN/2023 2 appeal is, therefore, condoned and the appeal is admitted for disposal on merits. 3. Succinctly, the facts of the case are that the assesse filed its return claiming deduction u/s.80P in respect of interest income earned from the deposits kept with Cooperative Banks, which was allowed by the AO. The ld. PCIT invoked the jurisdiction u/s 263 of the Act and disputed the allowability of the claim of deduction either u/s.80P(2)(a)(i) or u/s.80P(2)(d). Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard the rival submissions and gone through the relevant material on record. 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 the interest income 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 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 ITA No.524/PUN/2023 3 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. 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). 5. In view of the foregoing discussion, we hold that the impugned order cannot be sustained. The same is, therefore, overturned. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 01 st June, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 01 st June, 2023 सतीश ITA No.524/PUN/2023 4 आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The respondent 3. The Pr.CIT concerned 4. DR, ITAT, ‘A’ Bench, Pune 5. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 31-05-2023 Sr.PS 2. Draft placed before author 31-05-2023 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. *