Indian Kanoon - Search engine for Indian Law

Income Tax Appellate Tribunal - Pune

Mohol Nagari Sahakari Pat Purvatha ... vs Income-Tax Officer, Ward - 2,, ... on 13 December, 2018

           IN THE INCOME TAX APPELLATE TRIBUNAL

                    PUNE BENCH "SMC", PUNE

             BEFORE SHRI R.S. SYAL, VICE PRESIDENT

              आयकर अपील सं. / ITA No.584/PUN/2018
              
नधा रण वष  / Assessment Year : 2014-15

Mohol Nagari Sahakari Pat
Purvatha Sanstha Maryadit,
Market Yard, At Post- Mohol,
Dist.- Solapur-413 213
Maharashtra
PAN : AAAAM1185F
                                             .......अपीलाथ  / Appellant

                               बनाम / V/s.

The Income Tax Officer,
Ward-2, Pandharpur.
                                             ......  यथ  / Respondent


                 Assessee by              : None (written submission)
                 Revenue by               : Shri M.K. Verma



      सन
       ु वाई क  तार ख / Date of Hearing                 : 12.12.2018
      घोषणा क  तार ख / Date of Pronouncement            : 13.12.2018


                           आदे श / ORDER

PER R.S. SYAL, VP :

This appeal by the assessee arises out of the order passed by the CIT(Appeals)-9, Pune on 12.02.2018 in relation to the assessment year 2014-15.

A.Y.2014-15

2. The only issue raised in the present appeal is against non- granting of deduction u/s.80(P) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') in respect of interest income on FDRs maintained with the Nationalized Banks.

3. Briefly stated, facts of the case are that the assessee is a Co- operative Society engaged in providing credit facilities to its members. During the course of assessment proceedings, the AO observed that the assessee earned interest income of Rs.15,36,909/- on FDRs placed with IDBI Bank and Axis Bank, on which deduction was claimed u/s.80P of the Income-tax Act, 1961 (hereinafter also called `the Act'). The AO negatived the assessee's claim of deduction on such interest income, which action came to be echoed in the first appeal.

4. I have heard both the sides and perused the relevant material on record. The only issue in this appeal is whether interest income earned from FDRs with the nationalized banks is eligible for deduction u/s 80P of the Act? The Pune Bench of the Tribunal in the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed deduction u/s 80P of the Act in similar circumstances vide its order dated 19-08-2015. In that case, the Pune Bench discussed the contrary views expressed by the Hon'ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 taxmann 309 (Kar.) allowing the deduction u/s. 80P on interest income and the Hon'ble Delhi High 3 ITA No. 584/PUN/2018 A.Y.2014-15 Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s.80P on interest income earned from banks under similar circumstances. Both the Hon'ble High Courts have taken into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view taken in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). In the absence of their being any change in the legal position prevailing on this issue after the passing of the order by the Pune Bench of the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) and a host of other orders reiterating the similar view, respectfully following the precedent, I overturn the impugned order in not allowing deduction u/s.80P on the interest income and direct to grant deduction on such interest income.

5. In the result, the appeal is allowed.

Order pronounced on 13th day of December, 2018.

Sd/-

R.S. SYAL उपा य /VICE-PRESIDENT पण ु े / Pune; #दनांक / Dated : 13th December, 2018. SB 4 ITA No. 584/PUN/2018 A.Y.2014-15 आदे श क त ल प अ े षत / Copy of the Order forwarded to :

1. अपीलाथ / The Appellant.

2. यथ / The Respondent.

3. The CIT(Appeals)-9, Pune.

4. The Pr. CIT-6, Pune.

5. &वभागीय त न)ध, आयकर अपील य अ)धकरण, "एक-सद य" ब+च, पुणे / DR, ITAT, "SMC" Bench, Pune.

6. गाड फ़ाइल / Guard File.

// True Copy // आदे शानस ु ार / BY ORDER, नजी स)चव / Private Secretary आयकर अपील य अ)धकरण, पण ु े / ITAT, Pune.

ITA No. 584/PUN/2018

A.Y.2014-15 Date 1 Draft dictated on 12.12.2018 Sr. PS/PS 2 Draft placed before author 12.12.2018 Sr. PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved AM/JM by second Member 5 Approved draft comes to Sr. the Sr. PS/PS PS/PS 6 Kept for pronouncement Sr. on PS/PS 7 Date of uploading of order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order *