THE UNJHA TALUKA CO. OP. SALES PURCHASE UNION LTD.,UNJHA V. THE DY.CIT, CIRCLE GANDHINAGAR, GANDHINAGAR

ITA 560/AHD/2025

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The case involves The Unjha Taluka Co. Op. Sales Purchase Union Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which denied them a deduction of Rs. 2,46,338 under Section 80P(2) of the Income Tax Act for the Assessment Year 2013-14. The deduction was sought on interest earned from fixed deposits with cooperative banks. The tribunal examined precedents and judgments from the High Court of Gujarat and other tribunals, which supported the assessee's position. Consequently, the tribunal allowed the appeal, overturning the previous decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708536 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Other Referred Cases: The Salestax Employees Co-operative Credit Society Ltd. vs. The ACIT, The ACIT vs. The Sardar Patel Co-operative Credit Society Ltd., PCIT vs. Ashwin Kumar Arban Co. Operative Society Ltd., Surat Vankar Sahakari Sangh Ltd. vs. ACIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. MAKWANA
• Assessee Lawyers: MAULIK KANSARA
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.560/Ahd/2025 (Assessment Year: 2013-14) The Unjha Taluka Co. Op. Sales Purchase Union Ltd., C/o. Divyang Shah & Co. Chartered Accountants, 201, 2nd Floor, Devashish Complex, Nr. Regenta, Central Antarim Hotel, Off. C.G. Road, Ahmedabad-380009 Vs. Deputy Commissioner of Income Tax, Circle, Gandhinagar [PAN No.AAAAT4740P] (Appellant) .. (Respondent) Appellant by : Shri Maulik Kansara, AR Respondent by: Shri B. P. Makwana, Sr. DR Date of Hearing 17.07.2025 Date of Pronouncement 18.07.2025 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 30.05.2024 passed for A.Y. 2013-14. 2. At the outset, we observe that the appeal is time barred by 225 days. The delay of 225 days is condoned on due consideration of facts of assessee’s case and owing to causing no perceptible prejudice to other side. 3. The assessee has raised the following grounds of appeal: ITA No. 560/Ahd/2025 The Unjha Taluka Co. Op. Sales Purchase Union Ltd. vs. DCIT Asst.Year –2013-14 - 2– “1. Whether, on facts and in circumstances of the case and in law, Ld. CIT(A) has erred in not allowing deduction of Rs.2,46,338/- u/s 80P(2) of the act? 2. Whether, on facts and in circumstances of the case and in law, Ld. Assessing Officer has erred in issuing notice u/s. 148 of the act? Further, appellant craves leave to add, amend, alter or withdraw all or any ground of appeal.” 4. The Assessing Officer made disallowance of Rs. 2,46,338/- under Section 80P(2) of the Act on the interest earned from Cooperative Banks. The issue is no more res integra owing to judgment of the Coordinate Bench of the Ahmedabad Tribunal in the case of The Salestax Employees Co- operative Credit Society Ltd. vs. The ACIT in ITA No. 612/Ahd/2024 vide order dated 30.07.2024 and in the case of The ACIT vs. The Sardar Patel Co- operative Credit Society Ltd. in ITA No. 525&526/Ahd/2023 vide order dated 02.04.2024 as well as the decision of Hon’ble High Court of Gujarat in the case of PCIT vs. Ashwin Kumar Arban Co. Operative Society Ltd. 168 taxmann.com 314 (Gujarat) and in the case of Surat Vankar Sahakari Sangh Ltd. vs. ACIT 72 taxmann.com 169 (Gujarat). 5. In view of the orders of the Jurisdictional High Court and various Tribunals, we are of considered view that the assessee is eligible for deduction under Section 80P(2) of the Act, on interest received from fixed deposits held with cooperative banks. 6. In the result, the appeal of the assessee is allowed. This Order pronounced in Open Court on 18/07/2025 Sd/- Sd/- (DR. BRR KUMAR) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad; Dated 18/07/2025 TANMAY, Sr. PS TRUE COPY ITA No. 560/Ahd/2025 The Unjha Taluka Co. Op. Sales Purchase Union Ltd. vs. DCIT Asst.Year –2013-14 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 17.07.2025 2. Date on which the typed draft is placed before the Dictating Member 17.07.2025 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 17.07.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 18.07.2025 6. Date on which the fair order comes back to the Sr.P.S./P.S 18.07.2025 7. Date on which the file goes to the Bench Clerk 18.07.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order…………………………………… "