Income Tax Appellate Tribunal - Panji
The Sesa Goa Employees Co-Op. Credit ... vs The Assistant Commissioner Of Income ... on 28 December, 2022
IN THE INCOME TAX APPELLATE TRIBUNAL
PANAJI BENCH "SMC" : PANAJI
[THROUGH VIRTUAL HEARING]
BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER
I.T.A.No.45/PAN/2019
Assessment Year 2015-16
The Sesa Goa Employees The Asst. Commissioner
Coop Credit Society Ltd. of Income Tax, Circle 2(1),
C/o. Sesa Goa Ltd., Aayakar Bhavan, Patto
Sankhlim Mines, Goa Plaza, EDC Complex,
PIN 403 505 Panaji, Goa.
PAN AAAAT6226C vs PIN 403 001
Appellant Respondent
Assessee by : Shri R L Bhobe
Revenue by : Shri N. Shrikanth
Date of hearing : 19.12.2022
Date of pronouncement : 28.12.2022
ORDER
This assessee's appeal for Assessment Year 2015-16 is directed against the Commissioner of Income Tax (Appeals) Panaji-1, Panaji's order dated 10.01.2019 passed in case No.CIT(A), PNJ-1/10325/2017-18, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short "the Act"].
2. Heard both the parties. Case file perused.
3. It emerges during the course of hearing that the assessee's sole substantive ground raised in the instant appeal challenges correctness of both the lower authorities action disallowing it's sec.80P(2)(d) deduction claim of Rs.7,06,921/- on the ground that the same represent interest income derived 2 ITA.No.45/PAN/2019 The Sesa Goa Employees Coop Credit Society Ltd., Goa.
from property tax. The CIT(A)'s detailed discussion affirming Assessing Officer's action to this effect reads as follows :
"7. Ground no. 1 pertains to disallowance of deduction u/s 80P(2)(d) in respect of interest on deposits with M/ s. Goa State Co-operative Bank Limited.
8. I have critically and carefully analysed the provisions of the IT Act as well as the citations relied upon by the AO as well as by the AR of the appellant. The provisions of section 80P(4) have been analysed clearly and lucidly by the Assessing Officer. The Hon'ble Court in Totgar's case (order dt. 16/06/2017) has given a clear finding that the banking business even though run by a co¬operative bank is sought to be excluded from the beneficial provision of deduction u/s 80P. It has also been observed by Hon'ble Court that "The income by way of interest earned by deposit or investment of ideal or surplus funds does not change its character. Irrespective of the fact whether such income of interest is earned from a scheduled bank or a co-operative bank, and thus clause (d) of section 80P(2) would not apply in the facts and circumstances of this case. The person or body corporate from which such income is received will not change its character viz interest income not arising from its business operations, which remain illegible of deduction u/ s BOP of the Act." Moving