Mahatma Phule Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit, Solapur V. Income-tax Officer, Ward - 2, Pandharpur

ITA 541/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3685 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-01-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 26-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80P; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.541/PUN/2018 / ASSESSMENT YEAR : 2015-16 MAHATMA PHULE GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA MARYADIT, AT POST MALINAGAR, TAL. MASHIRAS, DIST. SOLAPUR 413108 PAN : AAAAM4675Q VS. ITO, WARD-2, PANDHARPUR (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-7, PUNE ON 09-01-2018 IN RELATION TO THE ASSESSMENT YEAR 2015-16. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST NOT ALLOWING DEDUCTION U/S.80P OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) IN RELATION TO INTEREST INCOME APPELLANT BY SHRI SUNIL GANOO RESPONDENT BY SHRI M.K. VERMA DATE OF HEARING 21-02-2019 DATE OF PRONOUNCEMENT 22-02-2019 ITA NO.541/PUN/2018 MAHATMA PHULE GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA MARYADIT 2 OF RS.8,88,884/- EARNED FROM FIXED DEPOSITS KEPT WITH THE NATIONALIZED BANKS. 3. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVAN T MATERIAL ON RECORD. IT IS OBSERVED THAT THE LD. CIT(A) DEN IED THE CLAIM OF DEDUCTION U/S.80P ON THE GROUND THAT INTEREST FR OM NATIONALIZED BANKS DOES NOT QUALIFY FOR DEDUCTION UNDER THIS SECTION. THE LD. AR PLACED ON RECORD A COPY OF AN ORDE R OF THE PUNE BENCH DATED 28-11-2018 IN THE CASE OF ITO VS. SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA (ITA NO.589/PN/2016) WHEREIN THE DECISION OF CIT(A) ALLOWING DEDUCTION U/S.80P WAS APPROVED BY THE TRIBUNAL. I FIND TH E SAID DECISION IS SQUARELY APPLICABLE TO THE FACTS OF THE INSTANT CASE. 4. FURTHER, IT IS NOTICED THAT THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT VS. ITO (ITA NO.604/PN/2014) ALLOWED SIMILAR DEDUCTION. IN THE SAID CASE, THE TRIBUNAL DISCUSSED THE CONTRARY VIEWS EXPRESSED BY THE HONBLE KARNATAKA HIGH COURT IN TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. VS. ITO (2015) 230 TAXMANN 309 (KAR.) ALLOWING THE ITA NO.541/PUN/2018 MAHATMA PHULE GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA MARYADIT 3 DEDUCTION U/S. 80P ON INTEREST INCOME AND THE HONBLE DELHI HIGH COURT IN MANTOLA COOPERATIVE THRIFT CREDIT SOCIETY LTD. VS. CIT (2014) 110 DTR 89 (DELHI) NOT ALLOWING DEDUCTION U/S.80P ON INTEREST INCOME, EARNED FROM BANKS UNDER SIMILAR CIRCUMSTANCES. BOTH THE HONBLE HIGH COURTS HAVE TAKEN INTO CONSIDERATION THE RATIO LAID DOWN IN THE CASE OF TOTGARS COOPERATIVE SALE SOCIETY LTD. 322 ITR 283 (SC) . THERE BEING NO DIRECT JUDGMENT FROM THE HONBLE JURISDICTIONAL HIGH COURT ON THE POINT, THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) PREFERRED TO GO WITH THE VIEW TAKEN IN FAVOUR OF THE ASSESSEE BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. (SUPRA). 5. IN THE ABSENCE OF THERE BEING ANY CHANGE IN THE LEGAL POSITION PREVAILING ON THIS ISSUE AND RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THE PUNE BENCH OF THE TRIBUNAL IN ITO VS. SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA ( SUPRA ) AND HOST OF OTHER ORDERS REITERATING THE SIMILAR VIEW, I REVERSE THE IMPUGNED ORDER IN DENYING DEDUCTION U/S.80P ON THE INTEREST ITA NO.541/PUN/2018 MAHATMA PHULE GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA MARYADIT 4 INCOME EARNED ON FIXED DEPOSITS KEPT WITH NATIONALIZED BANKS. THE DEDUCTION IS DIRECTED TO BE GIVEN. 6. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 22 ND FEBRUARY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-7, PUNE 4. THE PR. CIT-6, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.541/PUN/2018 MAHATMA PHULE GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA MARYADIT 5 DATE 1. DRAFT DICTATED ON 21-02-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 21-02-2019 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. *