S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit, Pune, Pune V. Deputy Commissioner of Income Tax, Circle-12, Pune, Pune

ITA 873/PUN/2022

AI Insights

The case involves S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit, a cooperative society, which appealed against the order of the CIT(A) that upheld the Assessing Officer's decision denying deduction under section 80P(2)(d) of the Income-tax Act, 1961. The deduction was claimed on interest and dividend income from Pune District Central Cooperative Bank. The primary legal contention was whether the income from a cooperative bank, which is also a cooperative society, qualifies for deduction under section 80P(2)(d) despite the restrictions imposed by section 80P(4) effective from April 1, 2007. The Tribunal referenced a prior decision (Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT) which supported the assessee's position, leading to the overturning of the lower authorities' decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124176 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 05-12-2022
• Other Referred Cases: PCIT Vs. Totgars Co-operative Sale Society Ltd., Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2(19)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.873/PUN/2022 नधा रण वष / Assessment Year : 2018-19 S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit Pune, S.P. College Employees Credit Cooperative Society, S.P. College, Biology Building Basement, Tilak Road, Pune 411 030 Maharashtra PAN : AAWAS0833N Vs. DCIT, Circle-12, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee is directed against the order dated 20-10-2022 passed by the CIT(A) in National Faceless Appeal Centre, 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 in this appeal is against not allowing deduction u/s.80P(2)(d) in respect of interest and dividend income from another cooperative bank. 3. Briefly stated, the facts concerning the issue in appeal are that the assessee filed the return claiming deduction u/s.80P(2) in respect Assessee by Shri Kishore B. Phadke Revenue by Shri Mahesh Jasnani Date of hearing 15-03-2023 Date of pronouncement 15-03-2023 ITA No. 873/PUN/2022 S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit 2 of interest and dividend from Pune District Central Cooperative Bank totalling to Rs.8,80,967/-. The Assessing Officer (AO) did not allow the deduction either u/s.80P(2)(a)(i) or u/s.80P(2)(d) by relying on judgment of the Hon’ble Supreme Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd., 83 taxmann.com 140. The ld. CIT(A) echoed the assessment order on this issue, against which the assessee has come up in appeal before the Tribunal contending that the deduction be allowed u/s 80P(2)(d) of the Act. 4. After considering the rival submissions and perusing the relevant material on record, it is seen that the assessee is a co-operative society which earned interest and dividend from Pune Central District Co- operative Bank. It is seen that the Pune Benches of the Tribunal in Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) has held, vide its order dated 07-01-2022, 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 ITA No. 873/PUN/2022 S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit 3 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. Pune District Central Co-operative Bank is also a co-operative society, being, registered as such. Respectfully following the decision of the Division Bench, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest and dividend income earned from Pune District Central Co-operative Bank, a co-operative society. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 15 th March, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 15 th March, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 873/PUN/2022 S.P. Mahavidyalaya Sevak Sahakari Patpedhi Maryadit 4 Date 1. Draft dictated on 15-03-2023 Sr.PS 2. Draft placed before author 15-03-2023 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. *