Income-tax Officer, V. Sureshdada Jain Nagri Sahakari Patsanstha, Jalgaon

ITA 589/PUN/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1335 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-11-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 31-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: IS DIRECTED AGAINS T PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NO.589/PUN/16 / ASSESSMENT YEARS : 2012-13 ITO, WARD-1(4), JALGAON VS. SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA, 7, PANDIT DEENDAYAL MARKET, JAMNER, TA. JAMNER, DIST. JALGAON PAN : AAAAS9364C (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-2, NASHIK ON 20-01-2016 IN RELATION TO THE ASSESSMENT YEAR 2012-13. 2. THE ONLY GRIEVANCE PROJECTED BY THE REVENUE IN ITS APPEAL IS AGAINST THE ALLOWING OF DEDUCTION U/S.80P OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED AS THE ACT) IN APPELLANT BY SHRI SUDHENDU DAS RESPONDENT BY SHRI SUNIL GANOO DATE OF HEARING 27-11-2018 DATE OF PRONOUNCEMENT 28-11-2018 ITA NO.589/PUN/2016 SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA 2 RESPECT OF INTEREST EARNED BY THE ASSESSEE SOCIETY FROM STA TE BANK OF INDIA, WHICH WAS DENIED BY THE ASSESSING OFFICER (AO). 3. BRIEFLY STATED, THE FACTS OF THE CASE, ARE THAT THE ASSESS EE IS A CO-OPERATIVE SOCIETY ENGAGED IN THE BUSINESS OF PROVIDIN G CREDIT FACILITIES TO ITS MEMBERS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO OBSERVED THAT THE ASSESSEE EARNED INTEREST INCOME OF RS. 71,48,551/- FROM STATE BANK OF INDIA, JAMNER BRANCH ON WHICH DEDUCTION WAS CLAIMED U/S 8 0P OF THE ACT. HE NEGATIVED THE ASSESSEES CLAIM ON SUCH I NTEREST INCOME. THE LD. CIT(A), FOLLOWING CERTAIN ORDERS PASSED B Y THE PUNE BENCH OF THE TRIBUNAL INCLUDING SHIVNERI NAGARI SAHAKARI PATSANSTHA LTD., KOLKAPUR VS. ITO (ITA NO. 2223/PN/2013) DATED 31-10-2014, ALLOWED THE ASSESSEES CLAIM, AGAINST WHICH THE REVENUE HAS COME UP IN APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE LD. CIT(A) ALLOWE D THE CLAIM OF DEDUCTION U/S.80P BY FOLLOWING THE ORDER PASSED BY THE TRIBUNAL IN THE CASE OF SHIVNERI NAGARI SAHAKARI ITA NO.589/PUN/2016 SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA 3 PATSANSTHA LTD. ( SUPRA ). THE LD. AR PLACED ON RECORD A COPY OF THE ANOTHER ORDER OF THE PUNE BENCH DATED 19-08-2015 IN THE CASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT VS. ITO (ITA NO.604/PN/2014) (TO WHICH ONE OF US, NAMELY, THE LD. JM IS PARTY) IN WHICH SIMILAR DEDUCTION HAS BEEN ALLOWED. THE PUNE BENCH OF THE TRIBUNAL IN THE CASE O F SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) HAS 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 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 ITA NO.589/PUN/2016 SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA 4 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 ISSUE AFTER THE PASSING OF THE ORDER BY THE PUNE BENCH OF THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT ( SUPRA ) AND HOST OF OTHER ORDERS REITERATING THE SIMILAR VIEW, RESPECTFULLY FOLLOWING THE PRECEDENT, WE UPHOLD THE IMPUGNED ORDER IN ALLOWING DEDUCTION U/S.80P ON THE INTEREST INCOME. 5. IN THE RESULT, THE APPEAL IS DISMISSED ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH NOVEMBER, 2018. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESID ENT PUNE; DATED : 28 TH NOVEMBER, 2018 ITA NO.589/PUN/2016 SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, NASHIK 4. / THE PR.CIT-2, NASHIK 5. , , / DR A, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.589/PUN/2016 SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA 6 DATE 1. DRAFT DICTATED ON 27-11-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 27-11-18 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. *