RAGUNATH HARI AMRUTKAR GRAMIN BIGARSHETI SAHAKARI PATHSANSTHA MARYADIT,GUNJALNAGAR, DEOLA V. ITO WARD 1(1), NASHIK, NASHIK

ITA 675/PUN/2025

AI Insights

The case involves Raghunath Hari Amrutkar Gramin Bigarsheti Sahakari Pasthsanstha Maryadit, the appellant, contesting the denial of a deduction for interest income earned from deposits with Cooperative Banks under section 80P(2)(d) of the Income-tax Act, 1961. The Income Tax Officer (ITO), Ward-1(1), Nashik, had initially denied this deduction, which was upheld by the National Faceless Appeal Centre, Delhi. The Tribunal, referencing several precedents, overturned the lower authorities' decisions, ruling in favor of the appellant and allowing the deduction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314518 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Other Referred Cases: Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal vs. ITO, Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd. vs. ITO, The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH B BUDRUK
• Assessee Lawyers: PIYUSH P. BAFNA
• Keywords: Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.675/PUN/2025 Assessment Year : 2020-21 Raghunath Hari Amrutkar Gramin Bigarsheti Sahakari Pasthsanstha Maryadit, Gunjalnagar, Deola, Tal Deola, Dist. Nashik 423102 Maharashtra PAN : AAAAR4312F Vs. ITO, Ward-1(1), Nashik Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2020-21 is directed against the order dated 08.01.2025 passed by National Faceless Appeal Centre, Delhi arising out of the Assessment order dated 25.08.2022 passed u/s.143(3) r.w.s.144B of the Income-tax Act, 1961 (in short ‘the Act). 2. The sole grievance of the assessee is against the finding of ld.CIT(A) denying the benefit of section 80P(2)(d) for the interest earned on deposits/investments held with Cooperative Banks. 3. At the outset, Ld. Counsel for the assessee submitted that the issue stands squarely covered in favour of the assessee in plethora of decisions passed by this Tribunal and therefore, the Appellant by : Shri Piyush P. Bafna Respondent by : Shri Ganesh B Budruk Date of hearing : 29.04.2025 Date of pronouncement : 08.05.2025 ITA No.675/PUN/2025 Raghunath Hari Amrutkar Gramin Bigarsheti Sahakari Pasthsanstha Maryadit, 2 deduction claimed by the assessee u/s.80P(2)(d) of the Act deserves to be allowed. 4. Ld. Departmental Representative supported the orders of the lower authorities. 5. We have heard both the sides and perused the record placed before us. Assessee has been denied benefit of section 80P(2)(d) of the Act for the interest earned from Cooperative Banks amounting to Rs.52,73,293/-. The fact that assessee has earned alleged sum of Rs.52,73,293/- from Cooperative Banks is not in dispute. Ld. AO has specifically observed in page 13 of the assessment order providing details of the alleged sum and the interest income has been earned from Nashik District Central Coop Bank, Deola Merchants Cooperative Bank, Rajlaxmi Cooperative Bank and Cosmos Cooperative Bank. Further, the issue is no more res integra by virtue of series of decisions holding that interest income from Cooperative Banks which are basically Cooperative Societies are allowable as deduction to the assessee u/s.80P(2)(d) of the Act. 6. Recently, this Tribunal in the case of Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal in ITA No.2471/PUN/2024 order dated 24.03.2025 has decided the very same issue in favour of the assessee observing as follows : “7. We have heard both the sides and perused the record placed before us. In the instant case, the Assessing Officer disallowed the interest income of Rs.1,63,98,998/- earned out of the Fixed deposits/Investments made with Cooperative Banks treating the same as Income from Other Source. Ld.CIT(A) dismissed the appeal in limine without discussing anything on merits of the issues and on the ground that the assessee has not provided plausible explanation for admission of additional evidences. ITA No.675/PUN/2025 Raghunath Hari Amrutkar Gramin Bigarsheti Sahakari Pasthsanstha Maryadit, 3 8. Section 80P(2)(d) of the Act provides that the sum received in respect of any income by way of interest or dividend derived by Cooperative Society from its investment with any other Cooperative Society, the whole of such income is eligible for deduction u/s.80P of the Act. we find that this issue is no more res integra as the Coordinate Benches of this Tribunal has been consistently holding that the interest income earned out of the FDs/Investments kept with Cooperative Banks is allowable u/s.80P(2)(d) of the Act. We find that this Tribunal in case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd., Vs. ITO in ITA No.1365/PUN/2023, dated 01.01.2024 dealing with similar issue after placing reliance on another decision of this Tribunal in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No.84/PAN/2018, dated 27.05.2022 has held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s.80P(2)(d) of the Act as Cooperative Banks are basically Cooperative Societies only but have turned into Bank on getting necessary banking license. 9. Respectfully following the above referred decisions taking consistent view along with considering the facts of the case, where the assessee made investment with the Cooperative Banks we hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the interest income earned from Cooperative Banks at Rs.1,63,98,998/-. Findings of the ld. CIT(A) is set-aside and the Assessing Officer is directed to allow the claim made by the assessee. Effective grounds of appeal raised by the assessee are allowed.” 7. Respectfully following the above decision, the claim made by the assessee u/s.80P(2)(d) at Rs.52,73,293/- for interest earned from Cooperative Banks stands allowed. Effective grounds of appeal raised by the assessee are allowed. 8. In the result, appeal of the assessee is allowed. Order pronounced on this 08th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 08th May, 2025. Satish ITA No.675/PUN/2025 Raghunath Hari Amrutkar Gramin Bigarsheti Sahakari Pasthsanstha Maryadit, 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "