Babanrao Awatade Nagari BigarshetiSahakari Patsanstha Maryadit Mangalwedha, Solapur V. Income-Tax Officer Ward -1, , Pandharpur

ITA 647/PUN/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8491 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-11-2022
• Assessment Year: misc
• Appeal Filed On: 24-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA No. 647/PUN/2022 नधा रण वष / Assessment Year : 2018-19 Babanrao Awatade Nagari Bigarsheti Sahakari Patsanstha Maryadit Mangalwedha, Murlidhar Chowk, Rajhans Chowk, Mangalwedha, Solapur, Maharashtra – 413 305 PAN : AADAM7809B Vs. ITO, Ward-1, Pandharpur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 29-06-2022 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act.) 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)(a)(i) on the interest income of Rs.32,59,760/-. 3. The factual matrix of the case is that the assessee is a credit cooperative society registered under Maharashtra Cooperative Assessee by Shri Krishna V. Gujarathi Revenue by Shri M.G. Jasnani Date of hearing 10-11-2022 Date of pronouncement 15-11-2022 ITA No. 647/PUN/2022 2 Societies Act, 1960. It is engaged in the business of accepting of deposits and 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) observed that the assessee earned interest on bank deposits amounting to Rs.32,91,008/- from various Cooperative Banks and claimed as deductible u/s.80P(2)(a)(i) of the Act. The AO and the ld. CIT(A) denied the deduction u/s.80P(2)(d) of the Act, against which the assessee has come up in appeal before 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 from various Co-operative Banks. 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- ITA No. 647/PUN/2022 3 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 assessee is also a Co-operative society and registered under the Maharashtra Cooperative Societies Act. Therefore, 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 various Co-operative Banks. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 15 th November, 2022. Sd/- (R.S.SYAL) उपा य / VICE PRESIDENT प ु णे Pune; दनांक Dated : 15 th November, 2022 Satish ITA No. 647/PUN/2022 4 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 Date 1. Draft dictated on 10-11-2022 Sr.PS 2. Draft placed before author 14-11-2022 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. *