SHARADCHANDRA NAGARI SAHAKARI PATSANSTHA MARYADIT,PUNE V. ITO, WARD 10(1), PUNE, PUNE

ITA 1041/PUN/2025

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The case involves Sharadchandra Nagari Sahakari Patsanstha Maryadit, a cooperative society, which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2015-16. The primary issue was the denial of deduction under section 80P(2)(d) of the Income Tax Act for interest income earned from Cooperative Banks. The Tribunal referenced a previous decision in the appellant's own case for A.Y. 2020-21, where it was held that such interest income is eligible for deduction as Cooperative Banks are considered Cooperative Societies. The Departmental Representative did not oppose the appellant's request for the deduction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398152 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Other Referred Cases: Samarth Nagari Shakari Path Sanstha Maryadit 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: AKHILESH SRIVASTVA
• Assessee Lawyers: ABHAY AVCHAT

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.1041/PUN/2025 Assessment Year : 2015-16 Sharadchandra Nagari Sahakari Patsanstha Maryadit, At Post Rajuri, Taluka Junnar, Dist. Pune – 412 411 Maharashtra PAN : AAABS1016L Vs. ITO, Ward-10(1), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated 28.03.2025 of National Faceless Appeal Centre, Delhi arising out of Assessment Order dated 29.12.2017 passed u/s.143(3) of the Income Tax Act, 1961 ( in short ‘the Act’). 2. The only grievance of the assessee is that ld.CIT(A) erred in not granting benefit u/s.80P(2)(d) of the Act for the interest earned from Cooperative Banks. 3. At the outset, Ld. Counsel for the assessee referring to the decision of this Tribunal in assessee’s own case for A.Y. 2020-21 in ITA No.1391/PUN/2024 order dated 24.03.2025 stated that the issue remains the same and that during the assessee under Appellant by : Shri Abhay Avchat Respondent by : Shri Akhilesh Srivastva Date of hearing : 04.06.2025 Date of pronouncement : 05.06.2025 ITA No.1041/PUN/2025 Sharadchandra Nagari Sahakari Patsanstha Maryadit 2 consideration assessee has made investment with Cooperative Banks and has earned interest of Rs.1,48,18,262/- and therefore net profit for the year at Rs.72,30,149/- deserves to be allowed as deduction u/s.80P(2)(d) of the Act. Ld. Departmental Representative did not oppose this request. 4. We have heard the rival contentions and perused the record placed before us. We notice that the assessee is a Cooperative Society and has earned interest of Rs.1,48,18,262/- from the investments made with Cooperative Banks. Assessee has claimed deduction u/s.80P at Rs.72,30,149/- which is less than the interest income from Cooperative Banks. This Tribunal is taking consistent view that interest income received from Cooperative Banks is also eligible for deduction u/s.80P(2)(d) of the Act as the Cooperative Banks are basically Cooperative Societies. This issue has come up in assessee’s own case for A.Y. 2020-21 before this Tribunal wherein the Tribunal held in favour of the assessee. Finding of this Tribunal in Para No.7 reads as under : “7. We have heard rival contentions and perused the records placed before us. We observe that the assessee which is a co-operative society has declared income of Rs.3,92,570/- after claiming deduction u/s 80P at Rs.1,33,50,608/-. We also observe that during the year the assessee society has earned interest income of Rs.18,96,95,893/- and has made interest payments of Rs.13,78,57,308/-. Further, the net total income of Rs.1,37,43,180/- has been assessed after considering the interest income earned from surplus funds deposited with cooperative banks at Rs.4,15,27,813/-. We observe that since the cooperative banks are basically cooperative societies, therefore, the interest earned from cooperative banks are clearly eligible for deduction u/s 80P(2)(d) of the Act and this view has been consistently followed by the Co-ordinate Bench of Tribunal in plethora of decisions including that of Samarth Nagari Shakari Path Sanstha Maryadit (supra) and The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO in ITA No.84/PAN/2018 order dated 27.05.2022. Therefore, in view of the above, the interest income from cooperative banks at Rs.4,15,27,813/- is eligible for deduction u/s 80P(2)(d) of the Act. However, deposit with MSEDCL at Rs.1,09,529/-, Ld. Counsel for the assessee failed to furnish any judicial precedent, therefore, ITA No.1041/PUN/2025 Sharadchandra Nagari Sahakari Patsanstha Maryadit 3 disallowance to the extent of Rs.1,09,529/- is hereby confirmed. In view of the above, against the total disallowance u/s 80P of the Act at Rs.1,33,50,608/-, we allow the deduction u/s 80P of the Act to the extent of Rs.1,32,41,080/- and confirm the disallowance of Rs.1,09,529/-. Effecting grounds of appeal raised by the assessee are partly allowed.” 5. Respectfully following the above decision and taking consistent view we are inclined to hold in favour of the assessee and allow the claim of deduction u/s.80P(2)(d) of the Act at Rs.72,30,149/-. Grounds of appeal raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed. Order pronounced on this 05th day of June, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 05th June, 2025. Satish 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. "