Income Tax Appellate Tribunal - Hyderabad
South Central Railway Employees ... vs Income Tax Officer, Ward-10(5), ... on 24 March, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES "SMC", HYDERABAD
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER
ITA No. A.Y. Appellant Respondent
M/s.South Central
1527/Hyd/19 2012-13 Railway Employees Income Tax
Co-operative Credit Officer,
Society Ltd., Ward-10(5),
1528/Hyd/19 2013-14 Hyderabad Hyderabad
[PAN: AABAS9059D]
For Assessee : Shri A.V.Raghu Ram, AR
For Revenue : Smt. N.Swapna, DR
Date of Hearing : 23-02-2021
Date of Pronouncement : 24-03-2021
ORDER
These two assessee's appeals for AYs.2012-13 & 2013-14 arise against the CIT(A)-6, Hyderabad's order(s) dated 07-06-2019 passed in appeal Nos.10283 & 10284 / 2018-19 / A3 / CIT(A)-6, involving proceedings u/s.143(3) r.w.s.147 of the Income Tax Act, 1961 [in short, 'the Act'].
Heard both parties. Case files perused.
2. The assessee's identical sole substantive grievance raised in both these appeals challenges correctness of the lower authorities' action disallowing 80P deduction claim of Rs.1,10,870/- and Rs.15,72,855/-; respectively on the ground that the same represents interest derived from surplus funds invested in nationalised banks/SBI.
:- 2 -:
ITA Nos. 1527 & 1528/Hyd/2019
3. Learned departmental representative quoted CIT Vs. South Eastern Railway Employees Co-operative Credit Society Ltd., (2017) [390 ITR 524] (Kol) that the impugned Section 80P deduction is not allowable to a co-operative credit society u/s.80P(2) of the Act. I, however, notice that the hon'ble jurisdictional high court's decision in Vavveru Co-operative Rural Bank Ltd., Vs. CIT (2017) [396 ITR 371] (AP) allowing such a deduction has been followed mutatis mutandis in the case of a co-operative credit society as well in ITTA No.669/2016, dt.12-04-2017. I therefore go by hon'ble jurisdictional high court to conclude that the assessee's identical interest income from deposits made in nationalised banks (supra) are very much entitled for 80P deduction. Necessary computation to follow as per law therefore.
4. These assessee's appeals are allowed in above terms.
Order pronounced in the open court on the 24 th March, 2021 Sd/-
( S.S.GODARA ) JUDICIAL MEMBER Hyderabad, Dated: 24-03-2021 TNMM :- 3 -:
ITA Nos. 1527 & 1528/Hyd/2019 Copy to :
1.M/s.South Central Railway Employees Co-operative Credit Society Limited, 10-3-194, Sahakar Bhavan, Himmat Nagar, 236, Rezmental Bazar, Secunderabad.
2.The Income Tax Officer, Ward-10(5), Hyderabad.
3.CIT(Appeals)-6, Hyderabad.
4.Pr.CIT-6, Hyderabad.
5.D.R. ITAT, Hyderabad.
6.Guard File.