Income Tax Appellate Tribunal - Pune
Income-Tax Officer,, vs Swa Ashokrao Bankar Nagari Sahakari ... on 4 May, 2017
आयकर अपीलीय अिधकरण पुणे यायपीठ "ए
ए" पुणे म
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
सु ी सुषमा चावला, याियक सद य एवं ी राजेश कु मार, लेखा सद य के सम
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI RAJESH KUMAR, AM
आयकर अपील सं. / ITA No.2006/PUN/2014
िनधा रण वष / Assessment Year : 2010-11
The Income Tax Officer,
Ward-1(1), Nashik .... अपीलाथ /Appellant
Vs.
Swa Ashokrao Bankar Nagari
Sahakari Patsanstha Maryadit,
Opp. Police Station,
Pimpalgaon (B), Tal. Niphad,
Dist. Nashik - 422 209
PAN : AAAAA2084K .... यथ / Respondent
अपीलाथ क ओर से / Appellant by : Ms. Ann Kapthuama
यथ क ओर से / Respondent by : None
सुनवाई क तारीख / घोषणा क तारीख /
Date of Hearing : 03.05.2017 Date of Pronouncement: 04.05.2017
आदेश / ORDER
PER SUSHMA CHOWLA, JM:
The captioned appeal filed by the Revenue is against order of CIT(A)- I, Nashik, dated 04.09.2014 relating to assessment year 2010-11 against order passed under section 143(3) of the Income-tax Act, 1961 (in short 'the Act').
2. The Revenue has raised the following grounds of appeal:-
"1. Whether on the facts and in the circumstances of the case, the Ld.CIT(A)-I, Nashik was justified in allowing the deduction u/s.80P(2)(a)(i) amounting to Rs.53,60,042/- in respect of interest earned on fixed deposits with Nationalised Bank.2 ITA No.2006/PUN/2014
2010-11
2. Whether on the facts and in the circumstances of the case, the Ld.CIT(A)-I, Nashik was justified in relying on the Hon'ble ITAT, Pune 'B' Bench in the case of ITO, Ward-1(4), Nashik Vs. Niphad Nagari Sahakari Patsanstha Ltd. Vide ITA No.1336/PUN/2011 - A.Y. 2008-09 dated 31-07-2013 even though the said decision is being contested further in the Hon. High Court.
3. The appellant prays that the order of the Ld.CIT(A)-I, Nashik may be please be cancelled and the order of Assessing Officer may please be restored.
4. The appellant prays leave to add, alter, clarify, amend and or withdraw any grounds of appeal as and when the occasion demands."
3. Despite service of notice none appeared on behalf of the assessee nor any application was filed for adjournment of the case. Hence we proceed to decide the present appeal after hearing the Ld. Departmental Representative for the Revenue since the issue raised in the present appeal is covered by the order of the Tribunal.
4. The only issue raised in the present appeal is against claim of deduction under section 80P(2)(a)(i) of the Act at Rs.53,60,042/- in respect of interest earned on fixed deposits with Nationalised Banks.
5. Briefly in the facts of the case the assessee society was a registered cooperative society carrying on Banking business and was registered under the Maharashtra State Cooperative Act. It provides facilities to its members, advanced loan to the members, charged interest on the same. It also accepted deposits from members and gave interest on it. The assessee also received interest on fixed deposits as well as fixed deposits kept with banks. During the year under consideration, the assessee had received interest to the extent of Rs.57,15,295/- from the Nationalised Banks. The Assessing Officer was of the view that since the interest income do not constitute the operational income of the assessee society, therefore, it was not entitled to deduction under section 80P(2)(a)(i) of the Act. The Assessing Officer allowed expenditure to the extent of Rs.3,55,253/- against 3 ITA No.2006/PUN/2014 2010-11 the said income and the net income of Rs.53,60,042/- was added to the total income of the assessee under section 56 of the Income Tax Act.
6. The CIT(A) relying on the ratio laid down by the Pune Bench of the Tribunal in the case of ITO Vs. Niphad Nagari Sahakari Patsanstha Ltd. In ITA No.1336/PUN/2011 relating to assessment year 2008-09 dated 31- 07-2013 allowed the claim of the assessee.
7. The Revenue is in appeal against the order of CIT(A).
8. On the perusal of record, we find that the issue in the present appeal is against the claim of deduction under section 80P(2)(a)(i) of the Act on interest income received from fixed deposits with Bank of India, HDFC Bank, State Bank of India and Development Credit Bank. The said issue is squarely covered by the order of the Tribunal in ITO Vs. Niphad Nagari Sahakari Patsanstha Ltd. (supra) wherein the Tribunal had held that the assessee is entitled to claim deduction under section 80P(2)(a)(i) of the Act on the interest income received by it on bank fixed deposits. The relevant findings of the Tribunal are reproduced at page 9 of the appellate order but are not being reproduced for the sake of brevity. Following the same parity of reasoning, we find no merit in the grounds of appeal raised by the Revenue and hence the same are thus dismissed.
9. In the result, the appeal of the Revenue is dismissed.
Order pronounced on this 4th day of May, 2017.
Sd/- Sd/-
(RAJESH KUMAR) (SUSHMA CHOWLA)
लेखा सद य / ACCOUNTANT MEMBER याियक सद य / JUDICIAL MEMBER
पुणे / Pune; दनांक Dated : 4th May, 2017.
Satish
4
ITA No.2006/PUN/2014
2010-11
आदेश क
ितिलिप अ ेिषत/Copy of the Order is forwarded to :
1. अपीलाथ / The Appellant;
2. यथ / The Respondent;
3. आयकर आयु (अपील) The CIT(A)-V, Pune;
/
4. आयकर आयु / The CIT-V, Pune;
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे ए / DR 'A', " "
ITAT, Pune;
6. गाड फाईल / Guard file.
आदेशानुसार/ BY ORDER, स यािपत ित //True Copy// सहायक पंजीकार / Assistant Registrar, आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune