Solapur DCC Bank Employees Co- Operative Society Limited, Solapur V. The Principal Commissioner of Income Tax -4, Pune

ITA 712/PUN/2023

AI Insights

The case involves the Solapur DCC Bank Employees Cooperative Society Limited, which appealed against the order of the Pr.CIT, Pune-4, under section 263 of the Income-tax Act, 1961. The dispute centered on the deduction claimed under section 80P for interest income earned from deposits with cooperative banks, which was initially allowed by the Assessing Officer (AO). The Pr.CIT later found this deduction to be erroneous and prejudicial to the interest of the Revenue, leading to the appeal. 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) post-1.4.2007.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137796 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-08-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 12-06-2023
• Other Referred Cases: The Sesa Goa Employees Coop. Credit Society Ltd. Vs. ACIT (ITA No.203/PUN/2019, order dated 16-11-2022)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 263; 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘B’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No.712/PUN/2023 Assessment Year : 2017-18 Solapur DCC Bank Employees Cooperative Society Limited, 46, Vistarit Imarat, Yogeshwar Complex, Solapur Zilla Madhyawart Bank, Navi Peth, Solapur Dist. Solapur – 413 401 Maharashtra PAN : AABAS9454N Vs. Pr.CIT-4, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order dt. 23-03-2022 passed by the Pr.CIT, Pune-4 u/s.263 of the Income- tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2017-18. 2. The appeal is time barred by 390 days. The assessee has filed an affidavit explaining the reasons for the delay. We are satisfied with the reasons. The delay in filing the appeal is, therefore, condoned and the appeal is admitted for disposal on merits. Assessee by Shri Piyush Bafna Revenue by Shri Ajay Kumar Kesari Date of hearing 22-08-2023 Date of pronouncement 23-08-2023 ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd. 2 3. Succinctly, the facts of the case are that the assesse filed its return claiming deduction u/s.80P in respect of interest income earned from the deposits kept with Cooperative Banks/Societies, which was allowed by the AO. The ld. PCIT invoked the jurisdiction u/s 263 of the Act and held the assessment order to be erroneous and prejudicial to the interest of the revenue on account of allowing the deduction either u/s.80P(2)(a)(i) or u/s.80P(2)(d) in respect of such interest income. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. We have heard the rival submissions and gone through the relevant material on record. The ld. PCIT has held the assessment order to be erroneous and prejudicial to the interest of the Revenue only on the ground that the claim of deduction u/s.80P on the interest income was not in order. In this regard, it is observed 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- ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd. 3 operative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force. Similar view has been taken by the Pune Benches of the Tribunal in several cases including The Sesa Goa Employees Coop. Credit Society Ltd. Vs. ACIT (ITA No.203/PUN/2019, order dated 16-11-2022). 5. In view of the foregoing discussion, we hold that the impugned order cannot be sustained. The same is, therefore, overturned. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 23 rd August, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 23 rd August, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. 3. थ / The respondent DR, ITAT, ‘B’ Bench, Pune 4. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd. 4 Date 1. Draft dictated on 22-08-2023 Sr.PS 2. Draft placed before author 23-08-2023 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. *