Income Tax Appellate Tribunal - Pune
Vaibhav Nagari Sahakari Pat Sanstha ... vs Income Tax Officer, Ward-1, ... on 26 April, 2023
IN THE INCOME TAX APPELLATE TRIBUNAL
SMC BENCH, PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
आयकर अपील सं. /ITA No.280/PUN/2023
नधारण वष / Assessment Year : 2018-19
Vaibhav Nagari Sahakari Pat Vs. ITO, Ward-1,
Sanstha Maryadit, Ichalkaranji
10/1286(10), Near Sawant Niwas,
Opp. Panchvati Theater,
Ichalkaranji - 416 115,
Maharashtra
PAN : AAAAV0226E
Appellant Respondent
Assessee by Shri Pramod Shingte
Revenue by Smt. Shraddha Nichal
Date of hearing 26-04-2023
Date of pronouncement 26-04-2023
आदे श / ORDER
PER R.S. SYAL, VP:
This appeal by the assessee arises out of the order dated 20-02-2023 passed by the CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2018-19.
2. The only issue raised in this appeal is against the denial of deduction u/s.80P of the Income-tax Act, 1961 (hereinafter also called 'the Act') on interest income earned from various cooperative banks amounting to Rs.22,52,021/-. 2 ITA No. 280/PUN/2023
Vaibhav Nagari Sahakari Pat Sanstha Maryadit
3. Tersely, the facts of the case are that the assessee is a cooperative credit society engaged in providing credit facilities to its members. The Assessing Officer (AO), during the course of assessment proceedings, found that the assessee had earned interest of Rs.22,52,021/- from various cooperative banks. Invoking provisions of section 80P(2)(d), he disallowed the interest income and the added back to the total income of the assessee under the head 'income from other sources'. The CIT(A) accorded his imprimatur to the view canvassed by the AO against which the assessee has approached the Tribunal.
4. I have heard the rival submissions and gone through the relevant material on record. It is seen that the question is of granting deduction u/s 80P of the Act on interest income earned from various cooperative banks. The extant issue is no more res integra in view of the catena of decisions delivered by the Pune Benches. The Pune Bench in Rena Sahakari Sakhar Karkhana Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) has held, vide its order dated 07-01-2022, that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section 80P(4) w.e.f. 1.4.2007, but this provision does not dent the otherwise 3 ITA No. 280/PUN/2023 Vaibhav Nagari Sahakari Pat Sanstha Maryadit eligibility u/s 80P(2)(d) of the Act of a co-operative society on interest income on investments/deposits parked with a co-operative bank, which is a registered co-operative society as per section 2(19) of the Act, defining co-operative society to mean a co-operative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force. The payer of interest is also a Co-operative society registered under the Cooperative Societies Act. Respectfully following the decision of the Division Bench, I overturn the impugned order and direct to grant deduction u/s.80P(2)(d) of the Act on the amount of interest earned from various cooperative banks.
5. In the result, the appeal is allowed.
Order pronounced in the Open Court on 26th April, 2023.
Sd/-
(R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनां क Dated : 26th April, 2023 सतीश 4 ITA No. 280/PUN/2023 Vaibhav Nagari Sahakari Pat Sanstha Maryadit आदे श की ितिलिप अ े िषत/Copy of the Order is forwarded to:
1. अपीलाथ / The Appellant;
2. थ / The Respondent
3. The Pr.CIT concerned
4. DR, ITAT, 'SMC' Bench, Pune
5. गाड फाईल / Guard file.
आदे शानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date
1. Draft dictated on 26-04-2023 Sr.PS
2. Draft placed before author 26-04-2023 Sr.PS
3. Draft proposed & placed before JM the second member
4. Draft discussed/approved by JM Second Member.
5. Approved Draft comes to the Sr.PS Sr.PS/PS
6. Kept for pronouncement on Sr.PS
7. Date of uploading order Sr.PS
8. File sent to the Bench Clerk Sr.PS
9. Date on which file goes to the Head Clerk
10. Date on which file goes to the A.R.
11. Date of dispatch of Order.
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