Shir Dhokeshwar Gramin Bigarsheti Sahakari Patsanstha Maryadit, Ahmednagar V. Principal Commissioner of Income Tax, Pune-1, Pune

ITA 86/PUN/2023

AI Insights

The case involves Dhokeshwar Gramin Bigarsheti Sahakari Patsanstha Maryadit, a cooperative society, which appealed against the order of the Pr.CIT under section 263 of the Income Tax Act, 1961. The Pr.CIT had set aside the initial assessment order, claiming it was erroneous and prejudicial to the interest of the Revenue, specifically concerning the deduction claimed under section 80P on interest income from deposits with a cooperative bank. The Tribunal examined precedents and the specific provisions of the Act, particularly focusing on the eligibility of cooperative societies to claim deductions under section 80P(2)(d) despite the restrictions imposed by section 80P(4).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137231 (ITAT-PUNE)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 22-01-2023
• 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 “A”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. /ITA No.86/PUN/2023 िनधा रण वष / Assessment Year: 2018-19 Dhokeshwar Gramin Bigarsheti Sahakari Patsanstha Maryadit, 1, Takli Dhokeshwar, Parner, Ahmednagar 414 304 Maharashtra PAN : AACAS1229C Vs. Pr.CIT-1, Pune Appellant Respondent आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order dated 13-01-2023 passed by the Pr.CIT u/s.263 of the Income- tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19. 2. Succinctly, the facts of the case are that the assessee is a co-operative society and is engaged in the business of accepting deposits from its members and providing credit facilities to its members. It filed the return declaring total income at NIL Assessee by: Shri Prasad Bhandari Revenue by: Shri Ramnath P. Murkunde Date of hearing 24-03-2023 Date of pronouncement 24-03-2023 ITA No.86/PUN/2023 2 claiming deduction u/s.80P in respect of interest income amounting to Rs.53,08,827/- from the deposits kept with cooperative bank. The case was selected for scrutiny through CASS for the reason “ Large claim of deduction under Chapter VIA”. The AO passed the order u/s.143(3) r.w.s.143(3A) & 143 (3B) accepting the returned income. The ld. PCIT invoked the jurisdiction u/s 263 of the Act and disputed the allowability of the claim of deduction u/s.80P(2) on such interest income. He eventually set aside the assessment order declaring it to be erroneous and prejudicial to the interest of the Revenue. Aggrieved thereby, the assessee has approached the Tribunal. 3. We have heard the rival submissions and gone through the relevant material on record. The extant issue under consideration is no more res integra by virtue of several orders passed by the Tribunal. It is seen that the assessee is a Cooperative credit society engaged in providing credit facilities to its members. 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 interest income was not in order. In this regard, it is observed that ITA No.86/PUN/2023 3 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-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 registered Co- operative society. 4. 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 fact that the Pune Benches of the Tribunal in series of decisions have held that the assessees are entitled to deduction u/s.80P(2)(a)(i)/80P(2)(d) in respect of interest income, we hold that the impugned order cannot be sustained. ITA No.86/PUN/2023 4 We, therefore, overturn the impugned order revising the assessment order granting deduction u/s.80P of the Act in respect of interest income earned from the deposits kept with cooperative banks. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 24 th March, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 24 th March, 2023 Satish आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent; 3. The Pr.CIT concerned 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A” / DR ‘A’, ITAT, Pune 5. गाड फाईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.86/PUN/2023 5 Date 1. Draft dictated on 24-03-2023 Sr.PS 2. Draft placed before author 24-03-2023 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. *