Shree Santaji Maharaj NagariSah. Pat.Ltd, Nashik V. Income Tax Officer, Nashik

ITA 714/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0687 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 27-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Assessee Lawyers: P S SHINGTE
• Keywords: Set aside
• Section: 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E BEFORE SHRI R.S.SYAL, VP AND SHRI PARTHA SARATHI CHAUDHURY, JM / ITA NO. 714/PUN/2017 / ASSESSMENT YEAR : 2014-15 SHREE SANTAJI MAHARAJ NAGARI SAH. PAT. LTD. 21/B-2, DR. ATHAVALE CHAMBERS, 2 ND FLOOR, OPP. GAVKARI PRESS, TILAK PETH, NASHIK-422 001 PAN : AACTS8751N .... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD-1(3), NASHIK. / RESPONDENT ASSESSEE BY : SHRI P.S. SHINGTE REVENUE BY : SHRI M.K. VERMA / DATE OF HEARING : 27.03.2019 / DATE OF PRONOUNCEMENT : 28.03.2019 / ORDER PER PARTHA SARATHI CHAUDHURY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM TH E ORDER OF THE LD. CIT(APPEALS)-1, NASHIK DATED 09.01.2017 FOR THE ASSESSM ENT YEAR 2014-15 AS PER GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 714/PUN/2017 A.Y.2014-15 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS W ITH REGARD TO THE DISALLOWANCE OF DEDUCTION CLAIMED U/S.80P(2)(A)(I) OF THE INCOME TA X ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) ON THE INTE REST INCOME EARNED BY THE ASSESSEE AT RS.54,68,900/-. 3. AT THE TIME OF HEARING THE LD. AR OF THE ASSESSEE INV ITED OUR ATTENTION TO THE ORDER OF THE CO-ORDINATE BENCH OF THE PUNE TRIBU NAL IN ITA NO. 541/PUN/2018 FOR THE ASSESSMENT YEAR 2015-16 AND ITA NO.155/PUN/2017 FOR THE ASSESSMENT YEAR 2013-14 WHEREIN ON THE SAME I SSUE, DEDUCTION U/S.80P OF THE ACT WAS ALLOWED ON THE INTEREST INCOME EARNED. 4. PER CONTRA, THE LD. DR HAS PLACED STRONG RELIANCE ON THE ORDERS OF THE SUB-ORDINATE AUTHORITIES. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND CONSIDERED T HE JUDICIAL PRONOUNCEMENTS PLACED BEFORE US. THAT ON SIMILAR FACTS AND CIRCUMSTANCES IN ITA NO.541/PUN/2018 WITH REGARD TO ALLOWING DEDUCTION U/S .80P OF THE ACT, THE CO-ORDINATE BENCH OF THE PUNE TRIBUNAL HAS HELD AS UNDER: 3. I HAVE HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD. IT IS OBSERVED THAT THE LD. CIT(A) DENIED THE CLAIM OF DEDUCTION U/S.80P ON THE GROUND THAT INTEREST FROM NATIONALIZ ED BANKS DOES NOT QUALIFY FOR DEDUCTION UNDER THIS SECTION. THE LD. AR PLACED ON RECORD A COPY OF AN ORDER OF THE PUNE BENCH DATED 28-11-2018 IN THE CASE OF ITO VS. SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA (ITA NO.589/PN/2016) WHEREIN THE DECISION OF CIT(A) ALLOWING DEDUCTION U /S.80P WAS APPROVED BY THE TRIBUNAL. I FIND THE SAID DECISION IS SQUAR ELY APPLICABLE TO THE FACTS OF THE INSTANT CASE. 4. FURTHER, IT IS NOTICED THAT THE PUNE BENCH OF T HE TRIBUNAL IN THE CASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARY ADIT VS. ITO (ITA NO.604/PN/2014) ALLOWED SIMILAR DEDUCTION. IN THE S AID CASE, THE TRIBUNAL DISCUSSED THE CONTRARY VIEWS EXPRESSED BY THE HONBLE KARNATAKA HIGH COURT IN TUMKUR MERCHANTS SOUHARDA C REDIT COOPERATIVE LTD. VS. ITO (2015) 230 TAXMANN 309 (KA R.) ALLOWING THE DEDUCTION U/S. 80P ON INTEREST INCOME AND THE HONB LE DELHI HIGH COURT IN MANTOLA COOPERATIVE THRIFT CREDIT SOCIETY LTD. V S. CIT (2014) 110 DTR 89 (DELHI) NOT ALLOWING DEDUCTION U/S.80P ON INTERE ST INCOME, EARNED FROM BANKS UNDER SIMILAR CIRCUMSTANCES. BOTH THE H ONBLE HIGH COURTS 3 ITA NO. 714/PUN/2017 A.Y.2014-15 HAVE TAKEN INTO CONSIDERATION THE RATIO LAID DOWN I N THE CASE OF TOTGARS COOPERATIVE SALE SOCIETY LTD. 322 ITR 283 (SC). T HERE BEING NO DIRECT JUDGMENT FROM THE HONBLE JURISDICTIONAL HIGH COURT ON THE POINT, THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT (SUPRA) PREFERRED TO GO WITH THE VIEW TAKEN IN FAVO UR OF THE ASSESSEE BY THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF TUM KUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. (SUPRA). 5. IN THE ABSENCE OF THERE BEING ANY CHANGE IN THE LEGAL POSITION PREVAILING ON THIS ISSUE AND RESPECTFULLY FOLLOWING THE VIEW TAKEN BY THE PUNE BENCH OF THE TRIBUNAL IN ITO VS. SURESHDADA J AIN NAGRI SAHAKARI PATSANSTHA (SUPRA) AND HOST OF OTHER ORDERS REITERA TING THE SIMILAR VIEW, I REVERSE THE IMPUGNED ORDER IN DENYING DEDUCTION U/S .80P ON THE INTEREST INCOME EARNED ON FIXED DEPOSITS KEPT WITH NATIONALI ZED BANKS. THE DEDUCTION IS DIRECTED TO BE GIVEN. 5.1 THAT ON THE SIMILAR SITUATION IN ITA NO.155/PUN/2017, TH E ISSUE RAISED IN THAT APPEAL IS AS UNDER: 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST NOT ALLOWING DEDUCTION U/S.80P(2)(A)(I) OF THE INCOME-TAX ACT, 1961 (HEREI NAFTER ALSO CALLED AS THE ACT) ON INTEREST INCOME OF RS.72,93,770/- EAR NED FROM BANKS OTHER THAN COOPERATIVE BANKS. THE OBSERVATION ON THIS ISSUE BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IS AS UNDER: 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE REL EVANT MATERIAL ON RECORD. THE ONLY ISSUE IN THIS APPEAL IS WHETHER I NTEREST INCOME EARNED FROM FDRS WITH THE NATIONALIZED BANKS IS ELIGIBLE F OR DEDUCTION U/S 80P OF THE ACT? THE PUNE BENCH OF THE TRIBUNAL IN THE C ASE OF SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT VS. IT O (ITA NO.604/PN/2014) HAS ALLOWED DEDUCTION U/S 80P OF TH E ACT IN SIMILAR CIRCUMSTANCES VIDE ITS ORDER DATED 19-08-2015. IN T HAT CASE, THE PUNE BENCH DISCUSSED THE CONTRARY VIEWS EXPRESSED BY THE HONBLE KARNATAKA HIGH COURT IN TUMKUR MERCHANTS SOUHARDA CREDIT COOP ERATIVE LTD. VS. ITO (2015) 230 TAXMANN 309 (KAR.) ALLOWING THE DEDU CTION U/S. 80P ON INTEREST INCOME AND THE HONBLE DELHI HIGH COURT IN MANTOLA COOPERATIVE THRIFT CREDIT SOCIETY LTD. VS. CIT (2014) 110 DTR 8 9 (DELHI) NOT ALLOWING DEDUCTION U/S.80P ON INTEREST INCOME EARNED FROM BA NKS UNDER SIMILAR CIRCUMSTANCES. BOTH THE HONBLE HIGH COURTS HAVE T AKEN INTO CONSIDERATION THE RATIO LAID DOWN IN THE CASE OF TO TGARS COOPERATIVE SALE SOCIETY LTD. 322 ITR 283 (SC). THERE BEING NO DIRE CT JUDGMENT FROM THE HONBLE JURISDICTIONAL HIGH COURT ON THE POINT, THE TRIBUNAL IN SHRI LAXMI NARAYAN NAGARI SAHAKARI PAT SANSTHA MARYADIT (SUPRA ) PREFERRED TO GO WITH THE VIEW TAKEN IN FAVOUR OF THE ASSESSEE BY TH E HONBLE KARNATAKA HIGH COURT IN THE CASE OF TUMKUR MERCHANTS SOUHARDA CREDIT COOPERATIVE LTD. (SUPRA). IN THE ABSENCE OF THERE BEING NO CHANGE IN THE LEGAL POSITION PREVAILING ON THIS ISSUE AFTER THE P ASSING OF THE ORDER BY THE PUNE BENCH OF THE TRIBUNAL IN SHRI LAXMI NARAYA N NAGARI SAHAKARI PAT SANSTHA MARYADIT (SUPRA) AND A HOST OF OTHER OR DERS REITERATING THE 4 ITA NO. 714/PUN/2017 A.Y.2014-15 SIMILAR VIEW, RESPECTFULLY FOLLOWING THE PRECEDENT, WE APPROVE THE IMPUGNED ORDER IN ALLOWING DEDUCTION U/S.80P ON THE INTEREST INCOME. RESPECTFULLY FOLLOWING THE AFORESAID DECISIONS OF THE CO-ORDINA TE BENCH OF THE PUNE TRIBUNAL, WE SET ASIDE THE ORDER OF THE LD. C IT(APPEALS) AND ALLOW THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 28TH DAY OF MARCH, 2019. SD/- SD/- R.S.SYAL PA RTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 28 TH MARCH, 2019. SB !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS)-1, NASHIK. 4. THE PR. CIT-1, NASHIK. 5. '#$ %%&' , ( &' , )*+ , / DR, ITAT, B BENCH, PUNE. 6. $,- ./ / GUARD FILE. // TRUE COPY // (0 / BY ORDER, %1 &+ / PRIVATE SECRETARY ( &' , / ITAT, PUNE. 5 ITA NO. 714/PUN/2017 A.Y.2014-15 DATE 1 DRAFT DICTATED ON 27 .03 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 27 .03 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER