SHRI VIDHYUT BOARD CREDIT AND CONSUMERS CO OPERATIVE SOCIETY LIMITED,BHAVNAGAR V. A.C.I.T., CIRCLE-1, BHAVNAGAR, BHAVNAGAR

MA 27/AHD/2025

AI Insights

The case involves Shri Vidhyut Board Credit Consumers Co-operative Society Ltd., the appellant, contesting the denial of a claim under Section 80P of the Income Tax Act concerning interest income from two banks for the Assessment Year 2017-18. The Tribunal's earlier decision dated 16-01-2025 had only addressed the expenses related to interest income from State Bank of India. The assessee filed a Miscellaneous Application to include similar considerations for interest income from Saurashtra Gramin Bank, which was initially overlooked. The Departmental Representative agreed that proportionate expenses should also be considered for Saurashtra Gramin Bank. Consequently, the Tribunal modified its earlier order to include this consideration and remanded the issue back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315638 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Section 80P of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: TUSHAR HEMANI; PARIMALSINH B. PARMAR
• Keywords: Principle of natural justice

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before Shri Suchitra Kamble, Judicial Member Shri Vidhyut Board Credit Consumers Co- operative Society Ltd., Power House Compound, Chavdigate, Bhavnagr, Guajrat-364001 PAN: AAAAS7855C (Appellant) Vs The ACIT, Circle-1, ITO, Jashonath Chowk, Nauka Baug, Bhavnagar, Gujarat-364002 (Respondent) Assessee by: Shri Tushar Hemani, Sr. A.R. & Shri Parimalsinh B. Parmar, A.R. Revenue by: Shri B.P. Srivastava, Sr. D.R. Date of hearing : 02-05-2025 Date of pronouncement : 14-05-2025 आदेश/ORDER This Miscellaneous Application has been filed the assessee in respect of the order dated 16-01-2025 passed by the Tribunal. 2. The ld. A.R. submitted that the A.O. denied claim u/s. 80P of the Act on the component of total interest income of Rs. 15,06,097/- and its break up as follows:- M.A. No. 27/Ahd/2025 (In ITA No.1057/Ahd/2024) Assessment Year 2017-18 M.A. No. 27/Ahd/2025 Shri Vidhyut Board Credit & Consumers Co-op. Society Ltd.., A.Y. 2017-18 2 From State Bank of India Rs. 1,08,418/- From Saurashtra Gramin Bank Rs. 13,97,679/- _______________ Total 15,06,097/- _______________ The Ld. A.R. submitted that the issue with respect of allowability of claim on proportionate expenses incurred for earning interest income was in respect of interest income earned from both the bank-wise; State Bank of India and Saurashtra Gramin Bank. Therefore, the ld. A.R. submitted that as relates to para 7.1 of the order dated 16-01-2025 while discussing the ground nos. 6- to the component on proportionate expenses is only mentioning State Bank of India and not that of Saurashtra Gramin Bank. Thus, the ld. A.R. submitted that the same may be taken into account and the order dated 16-01-2025 be rectified accordingly. 3. The ld. D.R. submitted that the proportionate expenses/expenditure has to be considered for the Saurashtra Gramin Bank as well. 4. I have heard both the parties and perused all the relevant materials available on record. From the perusal of the para 7.1 of the order dated 16-01-2025, it appears that the proportionate administrative expenses are allowable for Saurashtra Gramin Bank as well. The same should be considered. Therefore, order dated 16-01-2025 is modified as follows: “7.1 As regards ground nos. 6 to 9 in respect of proportionate administrative expenses, requires to be allowed if the assessee has incurred expenditure while earning the interest income from State Bank of India. Thus, this issue is remanded back to the file of the Assessing Officer for proper adjudication of the issues to determine the interest income as well as miscellaneous income M.A. No. 27/Ahd/2025 Shri Vidhyut Board Credit & Consumers Co-op. Society Ltd.., A.Y. 2017-18 3 earned by the assessee from State Bank of India and Saurashtra Gramin Bank and only thereafter that income can be considered for admissibility of the deduction under Section 80P(2) of the Act. The assessee be given opportunity of hearing by following the principles of natural justice. Thus, ground nos. 6 to 9 are partly allowed for statistical purpose” 5. Thus, M.A. filed by the assessee is allowed. Order pronounced in the open court on 14-05-2025 Sd/- (Suchitra Kamble) Judicial Member Ahmedabad : Dated 14/05/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "