Mohol Nagari Sahakari Pat Purvatha Sanstha Maryadit, Solapur V. Income-tax Officer, Ward - 2, Pandharpur

ITA 584/PUN/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9675 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.584/PUN/2018 / ASSESSMENT YEAR : 2014-15 MOHOL NAGARI SAHAKARI PAT PURVATHA SANSTHA MARYADIT, MARKET YARD, AT POST- MOHOL, DIST.- SOLAPUR-413 213 MAHARASHTRA PAN : AAAAM1185F .... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD-2, PANDHARPUR. / RESPONDENT ASSESSEE BY : NONE (WRITTEN SUBMISSION) REVENUE BY : SHRI M.K. VERMA / DATE OF HEARING : 12.12.2018 ! / DATE OF PRONOUNCEMENT : 13.12.2018 / ORDER PER R.S. SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE CIT(APPEALS)-9, PUNE ON 12.02.2018 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2 ITA NO. 584/PUN/2018 A.Y.2014-15 2. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST NON GRANTING OF DEDUCTION U/S.80(P) OF THE INCOME TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) IN RESPECT O F INTEREST INCOME ON FDRS MAINTAINED WITH THE NATIONALIZED BANKS. 3. BRIEFLY STATED, FACTS OF THE CASE ARE THAT THE A SSESSEE IS A CO- OPERATIVE SOCIETY ENGAGED IN PROVIDING CREDIT FACIL ITIES TO ITS MEMBERS. DURING THE COURSE OF ASSESSMENT PROCEEDIN GS, THE AO OBSERVED THAT THE ASSESSEE EARNED INTEREST INCOME O F RS.15,36,909/- ON FDRS PLACED WITH IDBI BANK AND AXIS BANK, ON WH ICH DEDUCTION WAS CLAIMED U/S.80P OF THE INCOME-TAX ACT, 1961 (HE REINAFTER ALSO CALLED `THE ACT). THE AO NEGATIVED THE ASSESSEES CLAIM OF DEDUCTION ON SUCH INTEREST INCOME, WHICH ACTION CAME TO BE EC HOED IN THE FIRST APPEAL. 4. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD. THE ONLY ISSUE IN THIS APPEAL IS WHETHE R INTEREST INCOME EARNED FROM FDRS WITH THE NATIONALIZED BANKS IS ELI GIBLE FOR DEDUCTION U/S 80P OF THE ACT? THE PUNE BENCH OF THE TRIBUNAL IN THE CASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARY ADIT VS. ITO (ITA NO.604/PN/2014) HAS ALLOWED DEDUCTION U/S 80P OF THE ACT IN SIMILAR CIRCUMSTANCES VIDE ITS ORDER DATED 1 9-08-2015. IN THAT CASE, THE PUNE BENCH DISCUSSED THE CONTRARY VIEWS E XPRESSED BY THE HONBLE KARNATAKA HIGH COURT IN TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. VS. ITO (2015) 230 TAXMANN 309 (KAR.) ALLOWING THE DEDUCTION U/S. 80P ON INTEREST INCOME AND THE HONB LE DELHI HIGH 3 ITA NO. 584/PUN/2018 A.Y.2014-15 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 CIRCUMSTANCE S. BOTH THE HONBLE HIGH COURTS HAVE TAKEN INTO CONSIDERATION T HE 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 TRIBUNA L 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). IN THE ABSENCE OF THEIR BEING ANY CHANGE IN THE LEGAL POSITION PREVAILING ON THIS ISS UE AFTER THE PASSING OF THE ORDER BY THE PUNE BENCH OF THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) AND A HOST OF OTHER ORDERS REITERATING THE SIMILAR VIEW, RESPECTF ULLY FOLLOWING THE PRECEDENT, I OVERTURN THE IMPUGNED ORDER IN NOT ALL OWING DEDUCTION U/S.80P ON THE INTEREST INCOME AND DIRECT TO GRANT DEDUCTION ON SUCH INTEREST INCOME. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED ON 13 TH DAY OF DECEMBER, 2018. SD/- R.S. SYAL /VICE-PRESIDENT ' / PUNE; #$ / DATED : 13 TH DECEMBER, 2018. SB 4 ITA NO. 584/PUN/2018 A.Y.2014-15 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS)-9, PUNE. 4. THE PR. CIT-6, PUNE. 5. &'( ) , ) , - * + , , ' / DR, ITAT, SMC BENCH, PUNE. 6. (- ./ / GUARD FILE. // TRUE COPY // $'0 / BY ORDER, 1 ), / PRIVATE SECRETARY ) , ' / ITAT, PUNE. 5 ITA NO. 584/PUN/2018 A.Y.2014-15 * DATE 1 DRAFT DICTATED ON 12.12.2018 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 12.12.2018 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER