AI Insights
The case involves Anupam Cooperative Housing Society, which appealed against the decisions of the Centralised Processing Centre (CPC) and the CIT(A) that denied them deductions under section 80P of the Income Tax Act for interest income earned from deposits with cooperative banks. The Tribunal examined the eligibility of the cooperative society to claim deductions under section 80P(2)(d) despite the restrictions imposed by section 80P(4) effective from April 1, 2007. The Tribunal referenced previous decisions, particularly the Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT, to conclude that the interest income from deposits with cooperative banks, which are also registered under the Cooperative Societies Act, qualifies for deduction under section 80P(2)(d).
Appeal Details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 124200 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
17 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
08-06-2023
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2017-2018
Appeal Filed On
21-05-2023
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA Nos.609 & 611/PUN/2023 नधा रण वष / Assessment Years : 2017-18 and 2020-21 Anupam Cooperative Housing Society, 1000/2 & 3, Navi Peth, Anupam CHS Ltd. Pune – 411 030, Maharashtra PAN : AADAA2397J Vs. ITO, Ward-12(1), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: These two appeals relate to the assessment years 2017-18 and 2020-21. Since a common issue is raised in these appeals, I am therefore, proceeding to dispose of these appeals by this consolidated order for the sake of convenience. 2. Briefly stated, the facts for the A.Y. 2017-18, are that the assessee, a cooperative housing society, earned interest income from the deposits with cooperative societies which was claimed as deductible u/s.80P. The Centralised Processing Centre (CPC) processed the return u/s.143(3) and did not allow the deduction. The Assessee by Shri Jayesh Doshi Revenue by Shri Gurmel Singh Date of hearing 09-06-2023 Date of pronouncement 09-06-2023 ITA Nos. 609 & 611/PUN/2023 Anupam Cooperative Housing Society 2 ld. CIT(A) upheld the intimation denying the benefit u/s.80P, against which the assessee has approached the Tribunal. 3. After considering the rival submissions and perusing the relevant material on record, it is seen that the assessee is a co- operative society and earned interest income amounting to Rs.8,53,542/- from the deposits kept with Pune District Co-operative Bank and Saraswat Bank. The question of allowing deduction u/s 80P on this score is no more res integra in view of the catena of decisions delivered by the Pune Benches, including the Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) holding, 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-operative society registered under the Cooperative ITA Nos. 609 & 611/PUN/2023 Anupam Cooperative Housing Society 3 Societies Act. Respectfully following the decision of the Division Bench, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest earned from cooperative banks. A.Y. 2020-21 : 4. During the year under consideration, the assessee claimed deduction of interest income amounting to Rs.8,27,393/- and dividend of Rs.293/- u/s.80P of the Act. The CPC denied the deduction the same even in the rectification order u/s.154 of the Act, which came to be affirmed in the first appeal. Both the sides are in agreement that the facts and circumstances for the A.Y. 2020-21 are mutatis mutandis similar. Following the view taken hereinabove for the A.Y. 2017-18, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) in respect of the interest and dividend income. 5. In the result, both the appeals are allowed. Order pronounced in the Open Court on 09 th June, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 09 th June, 2023 सतीश ITA Nos. 609 & 611/PUN/2023 Anupam Cooperative Housing Society 4 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 Date 1. Draft dictated on 09-06-2023 Sr.PS 2. Draft placed before author 09-06-2023 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. *
Mehul