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Income Tax Appellate Tribunal - Pune

Vita Urban Co-Operative Credit Society ... vs Income Tax Officer Ward 2 , Sangli on 16 December, 2022

        IN THE INCOME TAX APPELLATE TRIBUNAL
                 PUNE BENCH "SMC", PUNE

          BEFORE SHRI R.S. SYAL, VICE PRESIDENT

                     ITA No. 832/PUN/2022
               नधारण वष / Assessment Year : 2018-19

     Vita Urban Cooperative Credit       Vs.     ITO,
     Society Ltd.,                               Ward-2,
     Near Vegetable Market, Vita                 Sangli
     Maharashtra 415 311
     PAN : AAAAV0239K
                 Appellant                         Respondent

     Assessee by               None
     Revenue by                Shri Suhas Kulkarni

     Date of hearing           15-12-2022
     Date of pronouncement     16-12-2022

                          आदे श / ORDER

PER R.S. SYAL, VP :

This appeal by the assessee arises out of the ex parte order dated 15-07-2022 passed by the 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. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of assessee despite notice. I, therefore, proceed to dispose off the appeal ex parte qua the assessee.

ITA No. 832/PUN/2022

Vita Urban Cooperative Credit Society Ltd.,

3. Briefly stated, the facts of the case are that the assessee is a Cooperative credit society engaged in providing credit facilities to its members. The assessee filed return declaring total income at Nil after claiming deduction u/s.80P(2)(a)(i) for a sum of Rs.57,73,194/-. During the year under consideration, the assessee earned interest income amounting to Rs.1,73,110/- from the fixed deposits kept with Nationalised banks. The AO opined that such interest income was chargeable under the head 'Income from other sources" and hence ineligible for deduction u/s.80P(2)(a)(i). Eventually, the assessment was completed u/s.143(3) determining the total income at Rs.1,73,110/-, being, interest earned on fixed deposits kept with Nationalised Banks. The ld. CIT(A) affirmed the view point of the AO on this score. Aggrieved thereby, the assessee has approached the Tribunal.

4. After hearing the ld. DR and perusing the relevant material on record, it is seen that the assessee is a co-operative society registered under Maharashtra Cooperative Societies Act, 1960. During the year under consideration, the assessee earned interest amounting to Rs.1,73,110/- from deposits kept with banks. The issue of granting deduction u/s 80P on such an income is no more 3 ITA No. 832/PUN/2022 Vita Urban Cooperative Credit Society Ltd., 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 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 assessee 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)(a)(i) of the Act on the amount of interest earned from various Co-operative Banks.

ITA No. 832/PUN/2022

Vita Urban Cooperative Credit Society Ltd.,

5. In the result, the appeal is allowed. Order pronounced in the Open Court on 16th December, 2022.

Sd/-

(R.S.SYAL) उपा य / VICE PRESIDENT पण ु े Pune; दनांक Dated : 16 December, 2022 th Satish आदे श की ितिलिप अ े िषत/Copy of the Order is forwarded to:

1. अपीलाथ / The Appellant;

2. थ / The Respondent

3. The CIT(A) concerned

4. The Pr.CIT concerned

5. DR, ITAT, 'SMC' Bench, Pune

6. गाड फाईल / Guard file.

आदे शानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune 5 ITA No. 832/PUN/2022 Vita Urban Cooperative Credit Society Ltd., Date

1. Draft dictated on 15-12-2022 Sr.PS

2. Draft placed before author 16-12-2022 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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