Income Tax Appellate Tribunal - Ahmedabad
Dhanlaxmi Credit Co.Opreative Society ... vs The Income Tax Officer,Ward-2,, Patan on 8 September, 2017
आयकर अपील
य अ धकरण, अहमदाबाद यायपीठ ।
IN THE INCOME TAX APPELLATE TRIBUNAL,
"C" BENCH, AHMEDABAD
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI AMARJIT SINGH, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA.No.3268 and 3269/Ahd/2014
नधा रण वष / Asstt. Year: 2010-2011 and 2011-12
Dhanalaxmi Credit Co- ITO, Ward-2
operative Society Ltd. Vs Patan.
Poonam Complex
Unjha.
अपीलाथ!/ (Appellant) "#यथ!/ (Respondent)
Assessee by : Shri D.K. Parikh, CA
Revenue by : Shri Prasoon Kabra, Sr.DR
सन
ु वाई क तार ख/ Dateof Hearing : 08/08/2017
घोषणा क तार ख / Date of Pronouncement: 08 /09/2017
आदे श/O R D E R
PER RAJPAL YADAV, JUDICIAL MEMBER:
Assessee is in appeals before the Tribunal against order of ld.CIT(A), Gandhinagar dated 22.9.2014 passed for the Asstt.Years 2010-11 & 2011-12.
2. In both the appeals, the grievance of the assessee is that the ld.CIT(A) has erred in confirming disallowance section 80P(2)(a)(i) of the Income Tax Act, 1961 on the interest income earned from nationalized banks amounting to Rs.7,85,525/- and Rs.6,84,382/- in the Asstt.Year 2010-11 and 2011-12.
ITA No.3268 and 3269 /Ahd/2014 2
3. The ld.counsel for the assessee, at the very outset, submitted that an identical issue was considered in the case for the Asstt.Year 2009-10. The Tribunal has upheld the disallowance of deduction under section 80P(2)(1) on the interest income earned from the nationalized banks, after putting reliance upon the decision of the Hon'ble jurisdictional High Court in the case of State Bank of India Vs. CIT, 389 ITR 578. He placed on record copy of Tribunal's order and submitted that similar directions be given in the present years.
4. The ld.DR was unable to controvert the contentions of the ld.counsel for the assessee.
5. We have duly considered rival contentions and gone through the record carefully. We find that in an identical situation the Tribunal has issued following directions in the Asstt.Year 2009-10 for verification of the assessee's claim.
"11) Respectfully following the judgment of Hon. Jurisdictional High Court and examining the facts of the case as also in the light of decision of the Co-ordinate Bench discussed in the above paragraphs, we are of following view :-
(1) Assessee is not eligible for deduction u/s 80P(2)(a)(i) of the Act on the interest income earned from surplus deposits held with Nationalized/Scheduled banks.
(2) Assessee will be eligible to statutory deduction of Rs.50,000/-u/s 80P(2)(c) (ii) of the Act.
(3) Assessee will also be eligible to claim pro rata expenses for earning interest income of Rs.8,55,854/- assessee's claim of pro rata expenses of Rs.5,77,423/- against the interest income of Rs.8,55,854/- after due verification by the learned Assessing Officer.
We, therefore, direct the Assessing Officer to verify assessee's claim of pro rata expenses by examining the record to be shown for verification by the assessee. Needless to mention proper opportunity of being heard ITA No.3268 and 3269 /Ahd/2014 3 is to be given to the assessee. We order accordingly. The appeal of the assessee is partly allowed for statistical purposes."
6. Respectfully following order of the Co-ordinate Bench in the Asstt.Year 2009-10, we direct the AO to carry out similar exercise in these two years after providing proper opportunity to the assessee.
7. In the result, the appeals of the assessee are partly allowed for statistical purpose.
Order pronounced in the Court on 8th September, 2017 at Ahmedabad.
Sd/- Sd/- (AMARJIT SINGH) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER