THE SALESTAX EMPLOYEES CO.OP. CREDIT SOCIETY LIMITED,AHMEDABAD V. THE ACIT, CIRCLE-1(3), AHMEDABAD

MA 147/AHD/2024

AI Insights

The case involves The Salestax Employees Co-op. Credit Society Ltd. appealing against an order by the ITAT which had dismissed their claim for a deduction under section 80P of the Income Tax Act on interest income from a Savings Bank account. Initially, the ITAT had relied on a decision from the Division Bench in the case of The Sardar Patel Co-operative Credit Society Ltd., which was found to be misplaced as it pertained to a different context where the CIT(A) had allowed the deduction, and the ITAT had upheld this decision against the Revenue's appeal. The assessee pointed out that in the previous assessment year, their claim was allowed, highlighting inconsistency in the ITAT's decisions. The ITAT acknowledged the mistake and recalled the earlier order for re-adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472315 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: The Sardar Patel Co-operative Credit Society Ltd. vs. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVAN LIMBASIYA
• Keywords: Co-operative Credit Society

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ ‘SMC’, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE ANNAPURNA GUPTA, ACCOUNTANT MEMBER MA No.147/Ahd/2024 – AY 2017-18 (in आयकर अपील सं./in I.T.A. No.612/Ahd/2024 – AY 2017-18) The Salestax Employees Co-op.Credit Society Ltd. C-5, Bahumali Building Apna Bazar, Lal Darwaja Ahmedabad – 380 001 (Gujarat) बनाम/ Vs. The ACIT, Circle-1(3) Vejalpur Ahmedabad – 380 015 \fथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AABAT 1830 D (अपीलाथ\u0013 /Applicant) .. (\u0014\u0015थ\u0013 / Respondent) अपीलाथ\u0013 ओर से / Applicant by : Shri Pradeep Tulsian, AR \u0014\u0015थ\u0013 की ओर से/Respondent by : Shri Kavan Limbasiya, Sr.DR सुनवाई की तारीख / Date of Hearing 31/01/2025 घोषणा की तारीख /Date of Pronouncement 07/02/2025 आदेश / O R D E R The present miscellaneous application filed by the assessee seeks rectification in the order dated 30/07/2024 passed by the ITAT Ahmedabad ‘SMC” Bench in ITA No.612/Ahd/2024 for Assessment Year (AY) 2017-18. 2. During the course of hearing before us, the Ld.Counsel for the assessee drew our attention to the alleged mistake in the order of the ITAT pointing out that on the issue of claim of deduction u/s.80P of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) on interest income earned from Savings Bank account, the ITAT had dismissed the plea of the assessee following the order of the Division Bench of the ITAT in the case of The Sardar Patel Co- operative Credit Society Ltd. vs. ACIT in ITA Nos.525 & 526/Ahd/2023. He pointed out that the ITAT had rejected the assessee’s plea despite the fact MA No.147/Ahd/2024 – AY 2017-18 (In ITA No.612/Ahd/2024) The Salestax Employees Co-op.Credit Society Ltd. vs. The ACIT 2 that in its own case in the preceding year in AY 2014-15, the ITAT had allowed deduction u/s.80P of the Act on interest income earned from the same Savings Bank account. Our attention was drawn to the order dated 08/02/2023 of the ITAT in the case of the assessee for AY 2014-15 passed in ITA No.750/Ahd/2018. He further pointed out that reliance placed by the ITAT on the Division Bench in the case of The Sardar Patel Co-operative Credit Society Ltd. was also incorrect since in the said case, the Department had come in appeal before the ITAT against the order of the CIT(A) allowing deduction in respect of interest received from bank deposits from Co-operative Banks & Nationalized Banks and the ITAT had dismissed the Revenue’s appeal upholding the order of the CIT(A) allowing assessee’s claim of deduction in respect of the interest income. He, therefore, contended that reliance placed by the ITAT on the said decision while rejecting assessee’s plea was grossly incorrect. 3. The Ld.DR when confronted with the same, was unable to controvert any of the contentions raised by the Ld.Counsel for the assessee as noted above. 4. In view of the same, we agree with the Ld.Counsel for the assessee that there is an apparent mistake in the order of the ITAT with respect to its adjudication on the issue of allowance of claim of deduction u/s.80P of the Act on interest income earned from Savings Bank account. As rightly pointed out by the Ld.Counsel for the assessee, identical claim has been allowed by the SMC Bench of ITAT in the case of assessee itself in AY 2014-15 and even the reliance placed by the ITAT on the Division Bench decision of the ITAT in the MA No.147/Ahd/2024 – AY 2017-18 (In ITA No.612/Ahd/2024) The Salestax Employees Co-op.Credit Society Ltd. vs. The ACIT 3 case of The Sardar Patel Co-operative Credit Society Ltd.(supra) was demonstrated before us to be misplaced. 4.1. In the light of the same, we consider it fit to recall the order of the ITAT passed in ITA No.612/Ahd/2024 for AY 2017-18, dated 30/07/2024, for the limited purpose of adjudicating the issue of claim of deduction u/s.80P of the Act on interest earned income from Savings Bank account amounting to Rs.32,755/-. The Registry is directed to fix the appeal for hearing on 25/02/2025. 5. In the result, miscellaneous application filed by the Assessee is, accordingly, allowed in the above terms. Order pronounced in the Court on 07th February, 2025 at Ahmedabad. Sd/- ( ANNAPURNA GUPTA ) ACCOUNTANT MEMBER Ahmedabad, Dated 07/02/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u0014ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0013 / The Appellant 2. \u0014\u0015थ\u0013 / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-concerned/Addl/JCIT(A)-2 Coimbatore 5. िवभागीय \u0014ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड+ फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u0015ािपत \u0014ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "