M/SNLC HOWSICOS, CUDDALORE V. INCOMETAX OFFICER, CUDDALORE

ITA 899/CHNY/2020

AI Insights

The case revolves around the denial of a deduction claimed by the assessee, M/s. NLC Howsicos, under section 80P(2)(d) of the Income Tax Act, 1961, for interest received from The Taminadu Industrial Cooperative Bank Ltd. (TAICO Bank). The Assessing Officer initially did not disturb the deduction claimed in the assessment order dated 29.12.2016. However, the Commissioner of Income Tax (Appeals) denied the deduction, stating that the deduction is applicable only if the interest is received from a cooperative society, not a cooperative bank. The Tribunal referenced a similar case, M/s NLC Indcoserve vs. ITO, where it was held that a cooperative society is eligible for the deduction on interest received from a cooperative bank, provided the bank is registered as a cooperative society.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134055 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-01-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 04-11-2020
• Other Referred Cases: M/s NLC Indcoserve vs. ITO, CIT vs. The Salem Agriculture Producers Co-operative Marketing Society Ltd.
• Laws Referred To: Tamil Nadu Co-operative Societies Act, 1983
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण ‘सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.899/Chny/2020 (िनधा1रण वष1 / Assessment Year: 2016-17) M/s. NLC Howsicos Old CMC Campus Opp.Thermal Power Station-I Neyveli, Cuddalore-607 807. बनाम / V s. ITO. Ward-2, Cuddalore. था यी ले खा सं./जी आ इ आ र सं./P AN /GI R No . AAAAN - 2 2 6 4 -Q (अ पीलाथ%/Appellant) : (&'थ% / Respondent) अपीलाथ% की ओरसे/ Appellant by : Written submissions dated 15.11.2022 &'थ% की ओरसे/Respondent by : Shri G.Johnson,(Addl.CIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 04-01-2023 घोषणा की तारीख /Date of Pronouncement : 04-01-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole substantive issue that fall for our consideration in the captioned appeal is assessee’s claim of deduction u/s 80P(2)(d) for Rs.28.05 Lacs against interest received from The Taminadu Industrial Cooperative Bank Ltd. (TAICO Bank). Both sides have filed written submissions which have duly been considered and the issue is adjudicated as under. The assessee society is duly registered as a co- operative society under Tamil Nadu Co-operative Societies Act, 1983. 2. In assessment order dated 29.12.2016, Ld. AO did not disturb the deduction claimed by the assessee. However, Ld. CIT(A) denied ITA No.899/Chny/2020 - 2 - impugned deduction on the ground that TAICO Bank was a co- operative bank whereas in terms of statutory provisions, the deduction would be available only if the interest was received from a co-operative society only and not in case if interest was received from a co- operative bank. Aggrieved, the assessee is in further appeal before us. 3. We find that this issue has been decided by Tribunal in assessee’s favor in the case of M/s NLC Indcoserve vs. ITO (ITA No.900/Chny/2020 dated 08.06.2022). A copy of the same is on record. The co-ordinate bench, considering the decision of Hon’ble High Court of Madras in CIT vs. The Salem Agriculture Producers Co-operative Marketing Society Ltd. (TCA No.5/2015 dated 10.08.2016) held that a co-operative society would be eligible to claim impugned deduction on interest received from The Taminadu Industrial Cooperative Bank Ltd. (TAICO Bank) which is also a co-operative society. The only concern raised by Ld. Sr. DR is that the fact whether TAICO Bank has been registered as a co-operative society or not is not borne out of the case records. To address the same, we direct Ld. AO to ascertain whether TAICO Bank is registered as a co-operative society. If so, the assessee would be eligible to claim impugned deduction in terms of above decision of the Tribunal. 4. The appeal stands allowed for statistical purposes. Order pronounced on 04 th January, 2023. Sd/- (V. DURGA RAO) ाियक सद2 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद2 /ACCOUNTANT MEMBER चे6ई / Chennai; िदनांक / Dated : 04.01.2023 DS ITA No.899/Chny/2020 - 3 - आदेश की Uितिलिप अ 7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF