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

ITA 369/PUN/2025

AI Insights

The case involves three appeals by Shri Viroba Nagari Sahakari Patsanstha Maryadit against the orders of the National Faceless Appeal Centre, Delhi, concerning the Assessment Years 2017-18, 2018-19, and 2020-21. The primary legal issue was whether the assessee was eligible for deduction under section 80P(2)(d) of the Income-tax Act for interest income from investments/deposits with Co-operative Banks. The Tribunal noted that similar issues had been previously adjudicated in favor of the assessee, citing a decision in the case of Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit Society vs. ITO. The Tribunal also considered the delay in filing the appeals, which was attributed to administrative oversights following the departure of the society's accountant, and found the reasons sufficient to condone the delay.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474123 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: Collector Land Acquisition Vs. MST Katiji (1987) 167 ITR 471 (SC), 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
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BASAVARAJ HIREM ATH
• Assessee Lawyers: ABHAY AVACHAT

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.369, 370 & 371/PUN/2025 Assessment Years : 2017-18, 2018-19 & 2020-21 Shri Viroba Nagari Sahakari Patsanstha Maryadit, Near Purva Vesh, Shubham Corner, A/P Narayangaon, Tal.- Junnar, Dist.-Pune-410504 PAN : AABAS8708H Vs. ITO, Ward- 10(1), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, AM : The captioned three appeals pertaining to the Assessment Years 2017-18, 2018-19 and 2020-21 at the instance of assessee are directed against the separate orders passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short „the Act‟) which inturn are arising out of the respective Assessment orders. 2. Registry has informed that ITA No. 369/PUN/2025 is delayed by 439 days, ITA Nos. 370 & 371/PUN/2025 are delayed by 408 days respectively. Affidavit has been filed explaining the reasons for the said delay. After hearing both the sides, we observe that the main reason for the delay was on account of Appellant by : Shri Abhay Avachat Revenue by : Shri Basavaraj Hiremath Date of hearing : 25.03.2025 Date of pronouncement : 28.03.2025 ITA Nos.369, 370 & 371/PUN/2025 2 email id of the employee who was working as Accountant in the society but left the job in August, 2023. Due to this reason the impugned orders which were passed in the year 2023 could not be noticed by the assessee society. Subsequently, when new email id was registered on the e-portal in the January, 2025 penalty notices were received through which the assessee society came to know about the impugned orders and then had filed the instant appeals. Considering the reasons mentioned in the affidavit and also taking guidance from the judgment of the Hon‟ble Supreme Court in the case of Collector Land Acquisition Vs. MST Katiji (1987) 167 ITR 471 (SC), we find that the assessee would not have gained from delaying the appeal and therefore condone the delay and admit the instant appeals for adjudication on merits. 3. Common issue raised in all these three appeals are as to whether the assessee is eligible for deduction u/s. 80P(2)(d) of the Act for the interest income earned from investments/ deposits with Co-operative Banks. 4. The Ld. Counsel for the assessee at the outset stated that the issue is squarely covered in favour of the assessee by the plethora of decisions and therefore the assessee deserves to succeed. 5. On the other hand, the Ld. Departmental Representative referred to the impugned orders and also brought our attention to section 194A(3)(5) of the Act stating that Co-operative Banks are considered separate from Co-operative Society. 6. We have heard the rival contentions and perused the record placed before us. In the instant three appeals, the ITA Nos.369, 370 & 371/PUN/2025 3 common issue is as to whether the assessee is eligible for deduction u/s 80P(2)(d) of the Act for the interest income earned from the deposits held with Pune District Central Co-operative Bank. We find that this issue are whether interest of Co- operative Bank is eligible for deduction u/s 80P(2)(d) of the Act has been consistently held to be allowable u/s 80P(2)(d) of the Act by catena of decisions by this Tribunal. It has been held that since the Co-operative Banks are basically Co-operative Societies, therefore, the interest income earned from Co- operative Bank is also to be treated as interest income earned from Co-operative Society. Reliance placed on the decision of this Tribunal in the case of 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. Respectfully following the decision referred (supra) we are inclined to hold that the assessee deserves to succeed on the issue raised in the instant appeals and the Ld. Assessing Officer is directed to grant the deduction u/s 80P(2)(d) of the Act for the interest income earned from the Co-operative Banks during the impugned years. Effective grounds of appeals raised in the instant appeals are allowed. 7. In the result, all the three appeals of the assessee are allowed. Order pronounced on this 28th day of March, 2025. Sd/- Sd/- (S.S. VISWANETHRA RAVI) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ददन ंक / Dated : 28th March, 2025. RK ITA Nos.369, 370 & 371/PUN/2025 4 आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति, आयकर अपीलीय अतिकरण, “SMC” बेंच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. आदेश नुस र / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अतिकरण, पुणे / ITAT, Pune. "