Shri Shivashankar Urban Co-op. Credit Society Limited, Gokak V. Income Tax Officer, Ward - 1, Gokak

ITA 77/PAN/2023

AI Insights

The case involves Shri Shivashankar Urban Co-operative Credit Society Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC) concerning the assessment year 2018-19. The primary issue was the denial of a deduction claim under section 80P of the Income Tax Act for proportionate expenses against interest income from bank deposits. Initially, the Assessing Officer (AO) had treated the interest income as ineligible for deduction under section 80P but later allowed a proportionate deduction for expenses through a rectification order under section 154. The NFAC dismissed the appeal, stating that the assessee could not raise new claims that were not presented during the rectification proceedings. The Tribunal upheld the NFAC's decision, agreeing that the assessee's further claims were not permissible at the appellate stage.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136892 (ITAT-PANAJI)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 17-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Application of stay; Co-operative Credit Society
• Section: 154; 143(3); 80P

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH :: PANAJI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER & SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER (Through virtual hearing) S.A.No. 06/PAN/2023 And ITA No.77/PAN/2023 (A.Y. 2018-19) Shri Shivashankar Urban Co-operative Credit Society Ltd., A/P Khanagaon, Tq. Gokak, Dist. Belagavi. PAN: AAAAS 7264 D Vs ITO, Ward-1, Gokak. Appellant Respondent Assessee by : Shri Saidappa Gadadi, CA Revenue by : Shri N. Shrikanth, DR Date of hearing : 14/08/2023 Date of pronouncement : 21/08/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: The stay application and the appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 21.02.2023 for A.Y.2018-19 as per the grounds of appeal on record. 2. At the time of hearing, ld.AR submits that he wants to withdraw the stay application. Ld.DR has not raised any objection. Therefore, the stay application filed by the assessee is dismissed as withdrawn. SA No. 06/PAN/2023 & ITA No.77/PAN/2023 Shri Shivashankar Urban Co-op. Cr. Society Ltd. 2 3. Now we shall adjudicate the appeal filed by the assessee. 4. Brief facts of the case are that assessee is a co-operative society, filed its return of income for the A.Y. 2018-19. The assessment order u/sec. 143(3) r.w.s. 143(3A) & 143(3B) was passed on 15/03/2021 by treating the sum of Rs. 40,31,848/- representing interest received on bank deposits as not eligible for claim of deduction u/sec. 80P. Against the assessment order, the assessee filed application for rectification and requested for allowing deduction of proportionate expenses against such income which was treated as ineligible for claim of deduction u/sec. 80P. The AO accepted the contention of the assessee and accordingly proportionate deduction by way of expenses for earning income was worked out. Aggrieved by the order of the AO, assessee filed the appeal before the NFAC. The NFAC while adjudicating the appeal has observed that assessee had made a request for rectification stating that they had during the course of assessment proceedings, made a request for allowing deduction of proportionate expenses against such income which was to be treated as ineligible for claim of deduction u/sec. 80P. NFAC held that the AO had already allowed deduction u/sec. 80P for proportionate expenses as per the order u/sec. 154 of the Act. NFAC further held that assessee cannot make any further claim during the appellate proceeding which was not raised before the AO during the proceedings u/sec. 154 of the Act. Therefore, NFAC dismissed the appeal of the SA No. 06/PAN/2023 & ITA No.77/PAN/2023 Shri Shivashankar Urban Co-op. Cr. Society Ltd. 3 assessee. We do not find any infirmity with the findings of the NFAC, which is hereby upheld and the grounds of appeal raised by the assessee are dismissed. 5. In the result, stay application and the appeal filed by the assessee are dismissed. Order pronounced in open Court on 21 st August, 2023. Sd/- Sd/- (G.D. PADMAHSHALI) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 21 st August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, Panaji Bench, Panaji. 6. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.