SHRI ARYA CHANAKYA NAGARI SAHKARI PATSANSTHA MARYA ICHALKARANJI,ICHALKARANJI V. INCOME TAX OFFICER, ICHALKARANJI

ITA 2682/PUN/2024

AI Insights

The case involves Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji, a cooperative society, appealing against the order of the CIT(A) which confirmed the action of the Assessing Officer (AO) in denying deduction under section 80P(2)(d) for interest earned on deposits with other cooperative banks. The Tribunal examined whether the interest income of Rs.4,58,43,605 earned from fixed deposits with various cooperative banks qualifies for deduction under section 80P(2)(d) of the Income Tax Act, 1961. The Tribunal referenced decisions from similar cases, concluding that such interest income is indeed eligible for deduction.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24693 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Other Referred Cases: 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: RAMNATH P. MURKUNDE
• Section: 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2682/PUN/2024 िनधा\u0005रण वष\u0005 / Assessment Year: 2020-21 Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji, Girnar Apartments, Fire Fighter Road, Behind Municipal Building, Ichalkaranji-416115 Maharashtra PAN : AAAAA2055Q Vs. ITO Ward-1, Ichalkaranji अपीलाथ\u0007 / Appellant \t यथ\u0007/Respondent Assessee by: None Department by: Shri Ramnath P. Murkunde Date of hearing: 27.01.2025 Date of Pronouncement: 30.01.2025 आदेश / ORDER PER DR. MANISH BORAD, AM : This appeal at the instance of the assessee is directed against the order of the Ld. CIT(A) dated 21.11.2024 which is arising out of order u/s.143(3) of the Income Tax Act, 1961 dated 30.08.2022. 2. Assessee has raised following grounds of appeal: “1. On the facts and circumstances of the case and in law the CIT(A), NFAC erred in confirming the action of the AO of denying deduction under section 80P in respect interest earned by the appellant society on deposits with other co-operative banks, not accepting the submission of the appellant in this respect. ITA No.2682/PUN/2024 Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji 2 The appellant prays that the AO be directed to delete the addition. The appellant craves leave to add, amend, alter, modify, delete or add a new ground of appeal before or at the time of hearing.” 3. The sole grievance of the assessee is that ld. CIT(A) erred in denying the benefit u/s. 80P(2)(d) of the Act for the interest of Rs.4,58,43,605/- earned from deposits made with various Co- operative Banks. 4. In the course of hearing, none appeared on behalf of the assessee. However, considering that the issue in question has already been decided by this Bench through catena of decisions, we have considered to hear the appeal with the able assistance from the ld. Departmental Representative. 5. We have heard the ld. Departmental Representative and perused the record placed before us. The solitary issue raised in the instant appeal is whether the assessee is entitled for deduction u/s 80(P)(2)(d) of the Act on the interest earned on deposits made with other Co-operative Banks. Undisputedly, the assessee has earned interest of Rs.4,58,43,605/- from Fixed deposits made with various cooperative banks. 6. 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 observe that section 80P(2)(d) of the Act refers to the interest from Cooperative Society but it has been consistently held by this Tribunal (Pune Benches) that ITA No.2682/PUN/2024 Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji 3 Cooperative banks are basically Cooperative Societies except that they get license for doing the banking business. 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. We therefore respectfully following the above referred decisions hold that the assessee is eligible for deduction u/s.80P(2)(d) of the Act for the alleged interest income earned from Cooperative Banks. Findings of the ld. CIT(A) is set-aside and the alleged disallowance is deleted. Effective grounds of appeal raised by the assessee are allowed. 7. In the result, appeal of the assessee is allowed. Order pronounced on this 30th day of January, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 30th January, 2025. Satish ITA No.2682/PUN/2024 Shri Arya Chanakya Nagari Sahkari Patsanstha Marya Ichalkaranji 4 आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\r फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "