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Income Tax Appellate Tribunal - Ahmedabad

Shri Nilkanth Co.Op. Credit Society ... vs Ito, Patan Ward-5,, Mehsana on 28 June, 2018

           आयकर अपील
य अ धकरण, अहमदाबाद  यायपीठ 'lh' अहमदाबाद ।
          IN THE INCOME TAX APPELLATE TRIBUNAL
                   "C" BENCH, AHMEDABAD

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  BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER
     And SMT MADHUMITA ROY, JUDICIAL MEMBER

                 आयकर अपील सं./I.T.A.  No.1711/Ahd/2017
                (  नधा रण वष  / Assessment Year : 2014-15)
 Shri Nilkanth Co-op Credit              बनाम/      The Income Tax
          Society Ltd.,                   Vs.           Officer,
  At & Post : Dagava Diya,                          Patan Ward -5,
          Tal : Vijapur,                               Mehsana.
      Mehsana - 382 830

थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AAAJS 2855 B
      (अपीलाथ  /Appellant)               ..       (  यथ  / Respondent)
   अपीलाथ  ओर से /Appellant by :     Shri Sulabh Padshah, A.R.
     यथ  क  ओर से/Respondent by :    Shri Prasoon Kabra, Sr. D.R.

       ु वाई क  तार ख /
      सन                Date of Hearing               26/06/2018
      घोषणा क  तार ख /Date of Pronounce ment          28/06/2018

                              आदे श / O R D E R

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the assessee against the appellate order of the Commissioner of Income Tax(Appeals)-Gandhinagar, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)/GNR/270/2016-17 dated 05.05.2017 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the Act") dated 23.08.2016 relevant to Assessment Year (AY) 2014-15.

Shri Nilkanth Co-op Credit Society ltd. vs. ITO Asst.Year -2014-15 -2-

2. The grounds of appeal raised by the assessee are as under:-

"Your appellant being aggrieved by the Order passed by the learned Commissioner of Income Tax (Appeals), Gandhinagar, presents this appeal against the same on the following amongst other grounds.

1. The Commissioner of Income Tax (Appeals) has erred in directing the AO to tax the Interest Income received by the appellant from Savings Accounts held in State Bank of India and Dena Bank for Rs 2,51,385/- under the head Income From Other Sources u/s. 56 of the Income Tax Act,1961. Appellant is entitled to exemption u/s 80P of the Interest Income and therefore Income assessed u/s 56 of the Act may please be deleted.

2. Notwithstanding the decision of Gujarat High Court in the case of State bank of India vs CIT. the appellant co. op. society is entitled to exemption u/s 80P of the Income Tax Act on the Interest income of Rs 2,51,385/- also.

3. The order passed by the learned C.I.T(A) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now.

4. Your appellant craves leave to add, alter and/or to amend all or any of the grounds before the final hearing."

3. The solitary issue involved in the grounds of appeal relates to whether interest income earned on fixed deposits with the nationalized bank would qualify for deduction under section 80P(2)(a)(i) of the Income Tax Act.

4. At the outset, the learned counsel for the assessee fairly conceded that issue in dispute is squarely covered against the assessee by the decision of the Hon'ble jurisdictional High Court in the case of State Bank of India Vs. CIT, 389 ITR 578 wherein Hon'ble Court held that ITA No.1711/Ahd/2017 Shri Nilkanth Co-op Credit Society ltd. vs. ITO Asst.Year -2014-15 -3- interest earned from the investment made in any bank is not deductible under section 80P(2)(a)(i) of the Act. In this view of the matter, we dismiss the appeal of the assessee.

5. In the result, the appeal of the assessee is dismissed.

This Order pronounced in Open Court on                                         28/06/2018



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           U;kf;d lnL;                                                  Yks[kk lnL;
                                                                               lnL;
     (MADHUMITA ROY)                                           (WASEEM AHMED)
     JUDICIAL MEMBER                                    ACCOUNTANT MEMBER
Ahmedabad;              Dated         28/06/2018
Priti Yadav, Sr.PS

आदे श क      त"ल#प अ$े#षत/Copy of the Order forwarded to :
1.    अपीलाथ  / The Appellant
2.      यथ  / The Respondent.
3.    संबं'धत आयकर आयु)त / Concerned CIT

4. आयकर आयु)त(अपील) / The CIT(A)-Gandhinagar, Ahmedabad.

5. ,वभागीय /त/न'ध, आयकर अपील य अ'धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड4 फाईल / Guard file.

आदे शानुसार/ BY ORDER, स या,पत /त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad