Income Tax Appellate Tribunal - Pune
Shree Santaji Maharaj Nagarisah. ... vs Income Tax Officer,, Nashik on 28 March, 2019
आयकर अपील य अ धकरण "बी" यायपीठ पण
ु े म ।
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, PUNE
BEFORE SHRI R.S.SYAL, VP AND
SHRI PARTHA SARATHI CHAUDHURY, JM
आयकर अपील सं. / ITA No. 714/PUN/2017
नधा रण वष / Assessment Year : 2014-15
Shree Santaji Maharaj Nagari Sah.
Pat. Ltd.
21/B-2, Dr. Athavale Chambers,
2nd Floor, Opp. Gavkari Press,
Tilak Peth, Nashik-422 001
PAN : AACTS8751N
.......अपीलाथ / Appellant
बनाम / V/s.
The Income Tax Officer,
Ward-1(3), Nashik.
...... यथ / Respondent
Assessee by : Shri P.S. Shingte
Revenue by : Shri M.K. Verma
सन
ु वाई क तार ख / Date of Hearing : 27.03.2019
घोषणा क तार ख / Date of Pronouncement : 28.03.2019
आदे श / ORDER
PER PARTHA SARATHI CHAUDHURY, JM :
This appeal preferred by the assessee emanates from the order of the Ld. CIT(Appeals)-1, Nashik dated 09.01.2017 for the assessment year 2014-15 as per grounds of appeal on record.
2 ITA No. 714/PUN/2017A.Y.2014-15
2. The only grievance of the assessee in this appeal is with regard to the disallowance of deduction claimed u/s.80P(2)(a)(i) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on the interest income earned by the assessee at Rs.54,68,900/-.
3. At the time of hearing the Ld. AR of the assessee invited our attention to the order of the Co-ordinate Bench of the Pune Tribunal in ITA No. 541/PUN/2018 for the assessment year 2015-16 and ITA No.155/PUN/2017 for the assessment year 2013-14 wherein on the same issue, deduction u/s.80P of the Act was allowed on the interest income earned.
4. Per contra, the Ld. DR has placed strong reliance on the orders of the Sub-ordinate Authorities.
5. We have heard the rival contentions and considered the judicial pronouncements placed before us. That on similar facts and circumstances in ITA No.541/PUN/2018 with regard to allowing deduction u/s.80P of the Act, the Co-ordinate Bench of the Pune Tribunal has held as under:
3. I have heard both the sides and perused the relevant material on record. It is observed that the ld. CIT(A) denied the claim of deduction u/s.80P on the ground that interest from nationalized banks does not qualify for deduction under this section. The ld. AR placed on record a copy of an order of the Pune Bench dated 28-11-2018 in the case of ITO Vs. Sureshdada Jain Nagri Sahakari Patsanstha (ITA No.589/PN/2016) wherein the decision of CIT(A) allowing deduction u/s.80P was approved by the Tribunal. I find the said decision is squarely applicable to the facts of the instant case.
4. Further, it is noticed that 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) allowed similar deduction. In the said case, the Tribunal 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 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 3 ITA No. 714/PUN/2017 A.Y.2014-15 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).
5. In the absence of there being any change in the legal position prevailing on this issue and respectfully following the view taken by the Pune Bench of the Tribunal in ITO Vs. Sureshdada Jain Nagri Sahakari Patsanstha (supra) and host of other orders reiterating the similar view, I reverse the impugned order in denying deduction u/s.80P on the interest income earned on Fixed Deposits kept with Nationalized banks. The deduction is directed to be given."
5.1 That on the similar situation in ITA No.155/PUN/2017, the issue raised in that appeal is as under:
"2. The only issue raised in this appeal is against not allowing deduction u/s.80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter also called as 'the Act') on interest income of Rs.72,93,770/- earned from banks other than cooperative banks.
The observation on this issue by the Co-ordinate Bench of the Tribunal is as under:
"4. We 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 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 there being no 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 4 ITA No. 714/PUN/2017 A.Y.2014-15 similar view, respectfully following the precedent, we approve the impugned order in allowing deduction u/s.80P on the interest income."
Respectfully following the aforesaid decisions of the Co-ordinate Bench of the Pune Tribunal, we set aside the order of the Ld. CIT(Appeals) and allow the appeal of the assessee.
6. In the result, appeal of the assessee is allowed.
Order pronounced on 28th day of March, 2019.
Sd/- Sd/-
R.S.SYAL PARTHA SARATHI CHAUDHURY
VICE PRESIDENT JUDICIAL MEMBER
पण
ु े / Pune; दनांक / Dated : 28th March, 2019. SB 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)-1, Nashik.
4. The Pr. CIT-1, Nashik.
5. "वभागीय %त%न&ध, आयकर अपील य अ&धकरण, "बी" ब*च, पण ु े / DR, ITAT, "B" 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.
5 ITA No. 714/PUN/2017A.Y.2014-15 Date 1 Draft dictated on 27.03.2019 Sr.PS/PS 2 Draft placed before author 27.03.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.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