SHRI GANESH NAGARI SAHAKAR PATSANSTHA M. CHIPLUN TA. CHIPLUN,RATNAGIRI V. INCOME TAX OFFICER, RATNAGIRI

ITA 1743/PUN/2025

AI Insights

The case involves Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun, the appellant, contesting the denial of a deduction claim under section 80P(2)(d) of the Income Tax Act, 1961, for the Assessment Year 2018-19. The primary issue was the eligibility of interest income from deposits with Cooperative Banks for deduction under the specified section. The Tribunal referenced several precedents where it was consistently held that such interest income is eligible for deduction. However, it was noted that a portion of the claimed deduction included interest from Yes Bank, which is not covered under section 80P(2)(d). The Tribunal directed the Assessing Officer to verify the details and allow the deduction for the eligible amount.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785889 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 19-07-2025
• 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: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AJITESH MEENA
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Set aside; Additional evidence
• Section: 2

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1743/PUN/2025 Assessment Year : 2018-19 Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun T.A. Chiplun, C/o. Balaji Yashwant Chile, At Post Kherdi, Tal. Chiplun, Dist. Ratnagiri – 415605 Maharashtra PAN : AADAS9535Q Vs. Income Tax Officer, Ward-1, Ratnagiri Appellant Respondent आदेश / ORDER The captioned appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order dated 23.05.2025 of National Faceless Appeal Centre, Delhi emanating out of Assessment order dated 21.01.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Income Tax Act, 1961. 2. The only grievance of the assessee is that ld.CIT(A) has erred in not allowing the claim of deduction u/s.80P(2)(d) of the Act at Rs.9,11,820/-. 3. At the outset, Ld. Counsel for the assessee submitted that this Tribunal has been consistently holding in plethora of decisions that interest earned from investments held with Cooperative banks/Cooperative Societies is eligible for Appellant by : Shri Pramod S. Shingte Respondent by : Shri Ajitesh Meena Date of hearing : 14.10.2025 Date of pronouncement : 29.10.2025 Printed from counselvise.com ITA No.1743/PUN/2025 Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun T.A. Chiplun 2 deduction u/s.80P(2)(d) of the Act. He fairly admitted that in the claim of assessee deduction u/s.80P(2)(d) of the Act at Rs.9,11,820/- also includes the interest received from Yes Bank at Rs.1,02,121/- which is not eligible for deduction. However, for the remaining amount of Rs.8,08,698/- the same has been earned from investments with Cooperative banks/Cooperative Societies. 4. On the other hand, ld. DR supported the order of ld.CIT(A) but failed to controvert the contentions putforth by ld. Counsel for the assessee. 5. I have heard the rival contentions and perused the record placed before me. The issue under consideration is no longer longer res integra by virtue of catena of decisions taking consistent view that interest income earned from deposits with Cooperative Banks is eligible for deduction u/s.80P(2)(d) of the Act. Recently, this Bench in the case of Annapurna Nagari Sahkari Pathsanstha Maryadit Yawal Vs. ITO in ITA No.313/PUN/2025, order dated 07.05.2025 has allowed the deduction claimed by the assessee u/s.80P(2)(d) of the Act observing as under : “5. We have heard the rival submissions and perused the record placed before us. There is no dispute to the fact that assessee has earned interest income of Rs.1,02,95,103/- from deposits/investments with Cooperative Banks. This fact has been accepted by the Assessing Officer in the assessment order also. Admittedly, assessee has not filed the requisite details before ld.CIT(A). We however considering the fact that the issue regarding allowability of deduction u/s.80P(2)(d) of the Act for the interest earned from Cooperative Banks is no longer res integra as the very same issue has been decided by this Tribunal in catena of decisions and in assesse’s own case for A.Y. 2020-21 holding that the assessee is eligible for deduction u/s.80P(2)(d) of the Act as the Cooperative Banks are basically Cooperative Societies. For the sake of brevity, the finding given in ITA No.2471/PUN/2024 is reproduced below: Printed from counselvise.com ITA No.1743/PUN/2025 Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun T.A. Chiplun 3 “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. 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.” 6. Respectfully following the same, we hold that deduction of Rs.1,02,95,103/- u/s.80P(2)(d) of the Act claimed by the assessee on the interest earned from deposits/Investments with Cooperative Banks deserves to be allowed. Relevant finding of ld.CIT(A) on merits is set aside and grounds of appeal No.5 to 8 raised by the assessee are allowed.” Printed from counselvise.com ITA No.1743/PUN/2025 Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun T.A. Chiplun 4 6. Considering the above decisions and the consistent view taken by this Tribunal, I hold that the interest income earned from deposits/Investments with Cooperative Bank is eligible for deduction u/s.80P(2)(d) of the Act. However, the details in support of the said same were not placed before the lower authorities. It has been demonstrated by ld. Counsel for the assessee that out of the alleged sum of Rs.9,11,822/- the assessee’s claim should be restricted to Rs.8,08,698/- for the deduction u/s.80P(2)(d) of the Act and for necessary verification of the same ld. Jurisdictional Assessing Officer is directed to carry out the exercise and do the needful in accordance with law. I therefore in the given facts and circumstances firstly direct the ld. JAO to examine the details to be filed the assessee after providing reasonable opportunity to the assessee and if found to be correct then allow the claim of deduction u/s.80P(2)(d) of the Act. 7. Here, I would like to make it clear that the claim of deduction u/s.80P(2)(a)(i) of the Act at Rs.22,09,844/- and claim of deduction u/s.80P(2)(c) at Rs.50,000/- has already been allowed by the ld. JAO and the same is not in dispute. 8. In the result, the appeal filed by the assessee is partly allowed. Order pronounced on this 29th day of October, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 29th October, 2025. Satish Printed from counselvise.com ITA No.1743/PUN/2025 Shri Ganesh Nagari Sahakari Patsanstha M. Chiplun T.A. Chiplun 5 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, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "