Sharad Nagari Sahakari Patsanstha Maryadit, Sangli V. Income-Tax Officer, Ward -2, Sangli

ITA 706/PUN/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8860 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-11-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 20-09-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AMIT SUDHIR SHINTRE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA No. 706/PUN/2022 नधा रण वष / Assessment Year : 2018-19 Sharad Nagari Sahakari Patsanstha Maryadit, At Post Vita, Yashwant Nagar, Tal. Khanpur, Dist. Sangli Vita, Vita, Maharashtra – 415 311 PAN : AAAAS1311F Vs. ITO, Ward-2, Sangli Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 28-07-2022 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 herein is against not allowing deduction u/s.80P(2)(d) on the interest income earned from Cooperative banks and Societies. Assessee by Shri Amit Sudhir Shintre Revenue by Shri Ramnath P. Murkunde Date of hearing 07-11-2022 Date of pronouncement 07-11-2022 ITA No. 706/PUN/2022 Sharad Nagari Sahakari Patsanstha Maryadit 2 3. The factual matrix of the case is that the assessee is the Cooperative Credit society registered under Maharashtra Cooperative Societies Act, 1912. A return was filed claiming deduction u/s.80P(2)(d) amounting to Rs.67,74,783/-, which was restricted to the extent of gross total income amounting to Rs.47,63,695/-. The Assessing Officer (AO) held the interest income of Rs.50,12,157/- earned from Cooperative banks as falling under the head ‘Income from other sources” and hence, ineligible for deduction. The ld. CIT(A) accorded his imprimatur to the point of view canvassed by the AO. Aggrieved thereby, the assessee has approached the Tribunal. 4. After considering the rival submissions and perusing the relevant material on record, it is observed that the assessee is a Cooperative Credit society and earned interest income from Cooperative banks. The claim of deduction u/s.80P(2)(d) has been disallowed by the AO treating such income as falling under the head ‘Income from other sources’ instead of ‘Profits and Gains of business or profession’ as claimed by the assessee. The ld. AR has ITA No. 706/PUN/2022 Sharad Nagari Sahakari Patsanstha Maryadit 3 brought to my notice copies of certain orders passed by the Pune Bench of the Tribunal on this issue accepting the assessee’s claim. One of such orders is Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018). Vide order dated 07-01-2022, the Tribunal accepted the claim of deduction u/s.80P(2)(d) under similar circumstances. No contrary order has been brought to my notice by the ld. DR. In view of the facts and respectfully following the decision of the Division Bench, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) on the amount of interest income under consideration. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 07 th November, 2022. Sd/- (R.S.SYAL) उपा य / VICE PRESIDENT प ु णे Pune; दनांक Dated : 07 th November, 2022 Satish ITA No. 706/PUN/2022 Sharad Nagari Sahakari Patsanstha Maryadit 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 07-11-2022 Sr.PS 2. Draft placed before author 07-11-2022 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. *