THE GUJARAT HOUSING UMARWADA URBAN CO OP CREDIT SOCIETY LIMITED,SURAT V. .ITO, WARD 1(2)(5), SURAT

ITA 1050/SRT/2024

AI Insights

The case involves The Gujarat Housing Umarwada Urban Co-op. Credit Society Ltd., which appealed against the order of the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals) that denied them deductions under section 80P(2)(d) of the Income Tax Act, 1961, for the assessment year 2020-21. The primary contention was regarding the eligibility of deductions for interest and dividends received from cooperative banks. The Tribunal considered various precedents, including decisions from the jurisdictional High Court and previous Tribunal decisions, which supported the assessee's claim. The Tribunal's decision emphasized the cooperative nature of the banks involved and the applicability of section 80P(2)(d) to the income earned from these institutions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472216 (ITAT-SURAT)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Appeal Filed On: 14-10-2024
• Other Referred Cases: Shree Salabatpura Urban Co-Op. Credit Society Ltd. vs. DCIT, Surat Vankar Sahakari Sangh Ltd. vs. ACIT, PCIT vs. Totagars Co-operative Sale Society, M/s Bantwal Public Employees Consumers Co-operative Society vs. ITO, Murthedarara Seva Sahakari Sangha (N) vs. ITO, Althan Bhatar Co-operative Credit Society Ltd. Vs ACIT, Vishal Co-operative Housing Services Society Limited vs. ITO
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: UMESH DALAL
• Keywords: Co-operative Credit Society
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण, सूरत Ɋायपीठ, सूरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1050/SRT/2024 (AY 2020-21) (Physical court hearing) The Gujarat Housing Umarwada Urban Co-Op. Credit Society Ltd., 8, 173 to 176 Gujarat Housing Board Nr. Bombay Market, Umarwada, Surat-395 010 [PAN : AABAT 3313 R] बनाम Vs Income Tax Officer Ward- 1(2)(5), Surat, Aaykar Bhavan, Adajan, Surat-395009 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Umesh Dalal, CA राजˢ की ओर से /Revenue by Shri Mukesh Jain– Sr-DR अपील पंजीकरण/Appeal instituted on 14.10.2024 सुनवाई की तारीख/Date of hearing 05.12.2024 उद ्घोषणा की तारीख/Date of pronouncement .12.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi/Commissioner of Income tax (Appeals) [for short to as “NFAC/Ld.CIT(A)] dated 19.09.2024 for assessment year (AY) 2020-21, which in turn arises out of assessment order passed by Assessing Officer under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) 21.09.2022. The assessee has raised the following grounds of appeal:- “1. On the facts and circumstances of the case, the learned Commissioner of Income-tax(Appeals) has erred in confirming of Rs.16028372/-. ITA No.1050/SRT/2024 (A.Y.20-21) The Gujarat Housing Umarwada Urban Co-op. Credit Society Ltd. 2 2. On the facts and circumstances of the case, the learned Commissioner of Income-tax(Appeals) has erred in not allowing deduction under section 80P as claimed in the return of income. 3.On the facts and circumstances of the case, the learned Commissioner of Income-tax(Appeals) has erred in not granting deduction in respect of interest and dividend received from Co.Op. Bank etc., 4.On the facts and circumstances of the case, the learned Commissioner of Income-tax(Appeals) has erred in not appreciating that there are various decisions in favour of the appellant. 5. The appellant reserves right to add, alter, vary any or all grounds of appeal.” 2. Rival submission of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that the assessee is a cooperative credit society registered under The Gujarat Cooperative Act. The assessee while filing return of income in the computation of total income, claimed deduction of interest and dividend received from Co- operative bank under section 80P(2)(d) aggregating to Rs.1.60 crore. The figure of such amount is mentioned in para-8 of assessment order. The Ld. AR of the assessee submits that ground of appeal raised by assessee is covered by a series of decisions including by the decision of this Tribunal in case of Shree Salabatpura Urban Co-Op. Credit Society Ltd. vs. DCIT in ITA No.150/SRT/2023 for assessment year 2018-19, wherein this Tribunal by following various decisions including the judgment of Hon’ble jurisdictional High Court in case of Surat Vankar Sahakari Sangh Ltd. vs. ACIT held that co- operative bank are primarily co-operative society and interest or dividend earned from such co-operative bank are eligible for deduction under section 80P(2)(d) of the Act. ITA No.1050/SRT/2024 (A.Y.20-21) The Gujarat Housing Umarwada Urban Co-op. Credit Society Ltd. 3 3. On the other hand, Ld. Senior Departmental Representative (Ld.Sr-DR) for the Revenue relied upon the decision of Hon’ble Karnataka High Court in case of PCIT vs. Totagars Co-operative Sale Society [2017] 83 taxmann.com 140 (Kar) ITAT Bangalore Benches in case of M/s Bantwal Public Employees Consumers Co-operative Society vs. ITO in ITA No.903/Bang/2023 dated 18.12.2023 and Murthedarara Seva Sahakari Sangha (N) vs. ITO in ITA No.1474/Bang/2023 dated 29.11.2024. The Ld. Sr-DR for the Revenue submits that since interest earned from assessee’s business operation and not eligible for deduction under section 80P(2)(d) of the Act. 4. We have considered the rival submissions of both the parties and have gone through order of lower authorities carefully. We have also deliberated the case law relied upon by both the parties. We find that Ld. AR of the assessee has made a limited prayer about deduction under section 80P(2)(d) of the Act which has been mentioned by Assessing Officer in para-10 of assessment order i.e., interest earned from co-operative bank. We find that ground of appeal raised by assessee is squarely covered by a series of decisions of this co- ordinate Bench of this Tribunal even after considering the decisions of Hon’ble Karnataka High Court in the case of Totagars Co-operative Sale Society (supra) relied by Ld. Sr-DR for the Revenue. 5. We find that in Althan Bhatar Co-operative Credit Society Ltd. Vs ACIT in ITA No. 143/Srt/2024, this combination on similar contention of the parties passed the following order; 7. We have considered the rival submissions of both the parties and perused the orders of the lower authorities carefully. The dispute relates to deduction claimed under section 80P(2)(d) of the Act with regard to interest earned on ITA No.1050/SRT/2024 (A.Y.20-21) The Gujarat Housing Umarwada Urban Co-op. Credit Society Ltd. 4 fixed deposit with Surat District Co-operative Bank. We find that issue related with the deduction under section 80(P)(2)(d) is squarely covered by the series of decisions of jurisdictional High Court in Surat Vankar Sahakari Sangh Ltd. vs. ACIT ( supra) as well as by decisions of this Tribunal in favour of assessee including in the case of Vishal Co-operative Housing Services Society Limited vs. ITO, in ITA No.886/SRT/2023, dated 22.02.2024 (Surat – Trib.), wherein it was held that Co-operative Banks are primarily the Co-operative Society and the interest earned on deposit with Co-operative banks are eligible for deduction under section 80P(2)(d) of the Act. Similar, view was taken in assesses own case for AY 2014-15 in ITA No.151/SRT/2019, dated 31.03.2022. Having gone through the order of Co-ordinate Bench (supra), we see no reason to take a different view from the view taken by the Co-ordinate Bench (supra). 8. Considering the aforesaid consisting decision, which is followed in a series of decisions by this co-ordinate Bench of this Tribunal and respectfully following the said decisions, we direct the Assessing Officer to delete the deduction under section 80P(2)(d) of the Act. So far as reliance on the decision of Hon’ble Karnataka High Court in case of PCIT vs. Totagars Co-operative Sale Society (supra) is concerned, we find that the decision of Jurisdictional High Court in Surat Vankar Sahkari Sangh (supra) has binding precedent on this bench. 9. In the result, the grounds of appeal raised by the assessee is allowed. Order pronounced in the open court on 10/12/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member सूरत / Surat Dated: 10/12/2024 Dkp Outsourcing Sr.P.S* आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT ITA No.1050/SRT/2024 (A.Y.20-21) The Gujarat Housing Umarwada Urban Co-op. Credit Society Ltd. 5  गाडŊ फाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "