Sonai Gramin Bigarsheti Sah Patsanstha Maryadit, Pune V. Commissioner of Income-Tax (A) -11, Pune

ITA 638/PUN/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8775 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-11-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 23-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJKUMAR C. DOSHI
• Section: 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA No. 638/PUN/2022 नधा रण वष / Assessment Year : 2018-19 Sonai Gramin Bigarsheti Sah Patsanstha Maryadit, Gokhali, Tal. Indapur, Dist. Pune 413 106 PAN : AAAAY1535F Vs. DCIT, Central Circle-1(3), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A), Pune-11 on 17-08-2022 in relation to the assessment year 2018-19. 2. The only issue raised in this appeal is against the denial of deduction u/s.80P(2)(d) on the interest income of Rs.9,75,345/- and dividend of Rs.3,775/-. 3. The factual matrix of the case is that the assessee is a credit cooperative society engaged in providing credit facilities to its members. A return was filed declaring total income at Nil. During the course of assessment proceedings, the Assessing Officer (AO) Assessee by Shri Rajkumar C. Doshi Revenue by Shri Ramnath P. Murkunde Date of hearing 09-11-2022 Date of pronouncement 09-11-2022 ITA No. 638/PUN/2022 Sonai Gramin Bigarsheti Sah. Patsanstha 2 observed that the assessee earned interest on bank deposits of Rs.9,75,345/- and dividend of Rs.3,775/- from Pune District Cooperative Bank, which was claimed as deductible u/s.80P of the Act. The AO denied the deduction, which came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal. 4. After considering the rival submissions and perusing the relevant material on record, it is seen that the assessee is a co- operative society which earned interest and dividend from Pune Central District Co-operative Bank. It is seen that the Pune Benches of the Tribunal in Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) has held, 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 ITA No. 638/PUN/2022 Sonai Gramin Bigarsheti Sah. Patsanstha 3 Co-operative Societies Act, 1912 or under any law for the time being in force. Pune District Central Co-operative Bank is also a co-operative society, being, registered as such. 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 and dividend income earned from Pune District Central Co-operative Bank, a co-operative society. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 09 th November, 2022. Sd/- (R.S.SYAL) उपा य / VICE PRESIDENT प ु णे Pune; दनांक Dated : 09 th November, 2022 Satish आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. 3. थ / The Respondent The CIT(A) concerned 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 638/PUN/2022 Sonai Gramin Bigarsheti Sah. Patsanstha 4 Date 1. Draft dictated on 09-11-2022 Sr.PS 2. Draft placed before author 09-11-2022 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. *