Income Tax Appellate Tribunal - Pune
Income-Tax Officer,, vs Sureshdada Jain Nagri Sahakari ... on 28 November, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER
आयकर अपील सं. / ITA No.589/PUN/16
िनधा रण वष / Assessment Years : 2012-13
ITO, Ward-1(4), Sureshdada Jain Nagri
Jalgaon Vs. Sahakari Patsanstha,
7, Pandit Deendayal Market,
Jamner, Ta. Jamner,
Dist. Jalgaon
PAN : AAAAS9364C
(Appellant) (Respondent)
Appellant by Shri Sudhendu Das
Respondent by Shri Sunil Ganoo
Date of hearing 27-11-2018
Date of pronouncement 28-11-2018
आदेश / ORDER
PER R.S.SYAL, VP :
This appeal by the Revenue is directed against the order passed by the CIT(A)-2, Nashik on 20-01-2016 in relation to the Assessment Year 2012-13.
2. The only grievance projected by the Revenue in its appeal is against the allowing of deduction u/s.80P of the Income-tax Act, 1961 (hereinafter also called as 'the Act') in 2 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha respect of interest earned by the assessee society from State Bank of India, which was denied by the Assessing Officer (AO).
3. Briefly stated, the facts of the case, are that the assessee is a co-operative society engaged in the business of providing credit facilities to its members. During the course of assessment proceedings, the AO observed that the assessee earned interest income of Rs. 71,48,551/- from State Bank of India, Jamner branch on which deduction was claimed u/s 80P of the Act. He negatived the assessee's claim on such interest income. The ld. CIT(A), following certain orders passed by the Pune bench of the Tribunal including Shivneri Nagari Sahakari Patsanstha Ltd., Kolkapur Vs. ITO (ITA No. 2223/PN/2013) dated 31-10-2014, allowed the assessee's claim, against which the Revenue has come up in appeal before the Tribunal.
4. We have heard both the sides and perused the relevant material on record. It is observed that the ld. CIT(A) allowed the claim of deduction u/s.80P by following the order passed by the Tribunal in the case of Shivneri Nagari Sahakari 3 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha Patsanstha Ltd. (supra). The ld. AR placed on record a copy of the another order of the Pune Bench dated 19-08-2015 in the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) (to which one of us, namely, the ld. JM is party) in which similar deduction has been allowed. The Pune Bench of the Tribunal in the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) has 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 4 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha 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 host of other orders reiterating the similar view, respectfully following the precedent, we uphold the impugned order in allowing deduction u/s.80P on the interest income.
5. In the result, the appeal is dismissed Order pronounced in the Open Court on 28th November, 2018.
Sd/- Sd/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT
पुणे Pune; दनांक Dated : 28th November, 2018 सतीश 5 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha आदेश क ितिलिप अ ेिषत षत/Copy of the Order is forwarded to:
1. अपीलाथ / The Appellant;
2. यथ / The Respondent;
3. आयकर आयु (अपील) / The CIT (Appeals)-2, Nashik
4. आयकर आयु / The Pr.CIT-2, Nashik
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पु णे "ए ए" / DR 'A', ITAT, Pune;
6. गाड फाईल / Guard file. // True copy // आदेशानुसार/ ार BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पु णे / ITAT, Pune 6 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha Date
1. Draft dictated on 27-11-18 Sr.PS
2. Draft placed before author 27-11-18
3. Draft proposed & placed before the second member
4. Draft discussed/approved by Second Member.
5. Approved Draft comes to the Sr.PS/PS
6. Kept for pronouncement on
7. File sent to the Bench Clerk
8. Date on which file goes to the AR
9. Date on which file goes to the Head Clerk.
10. Date of dispatch of Order.
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