Income Tax Appellate Tribunal - Pune
Marathwada Krishi Vidyapeeth ... vs Pr. Commissioner Of Income-Tax-1, ... on 21 December, 2022
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND
SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER
Sl. ITA No. Name of Appellant Name of Asst. Year
No. Respondent
1 102/PUN/2020 Marathwada Krishi Vidyapeeth PCIT-1, 2014-15
Karmachari Sahkari Patsanstha Aurangabad
Ltd.,
Sahakar, Krishi Sarathi Colony,
Basmath Raod,
Parbhani-431401
PAN :AAAAM6906E
2 304/PUN/2022 Rajhans Gramin Bigarsheti ITO, 2017-18
Co.op. Credit Society Ltd., Ward-14(5),
At & Post Karanje, Pune
Tal. Baramati,
Dist. Pune - 412306
PAN :AAAAR0265M
3 305/PUN/2022 State Bank of India Employees PCIT-4, Pune 2017-18
Co.op. Credit Society Ltd.,
Pune Main Branch Campus,
Dr. Ambedkar Road,
Pune 411 001
PAN : AAAAS0886R
4 331/PUN/2022 Tuljaram Chaturchand PCIT-4, Pune 2017-18
Mahavidyalaya Sevakanchi
Saha Patsanstha Maryadit,
T.C. College Baramati,
Taluka Baramati,
Pune 413 102
PAN : AAHCS6334B
5 350/PUN/2022 Tuljabhavani Nagari Sahakari PCIT-1, Thane 2017-18
Patpedhi Ltd.,
Pragati, Plot No.9, Sector-19,
New Panvel - 410 206
PAN: AAAAJ2329Q
6 357/PUN/2022 Shri Saraswati Sarvavyavasaik PCIT-4, Pune 2017-18
Nagari Sahkari Patsanstha
Maryadit,
Block No.18, N.G. Mill Society,
Near Asara Bridge Hotgi Road,
Solapur - 413 003
PAN: ABEFS3464P
7 373/PUN/2022 Shivkrupa Nagari Sahakari Pata PCIT-4, Pune 2017-18
Sanstha Ltd., Sutar Net,
Near State Bank of India,
Daund, Pune 413 801
PAN : AAEAS3869C
2
Marathwada Krishi Vidyapeeth
Karmachari Sahkari Patsanstha Ltd. and others
8 380/PUN/2022 Samata Nagari Sahakari ITO, 2017-18
Patsanstha Maryadit, Ward-14(5),
Prasanna Residency, Pune
At & post Nira,
Tal. Purandar,
Dist. Pune - 412 102
PAN : AABAS5442E
9 384/PUN/2022 Sahyadri Gramin Bigarsheti PCIT-1, Thane 2017-18
Sahakari Patsanstha Maryadit,
Sabale Niwas, Morba Road,
Mangaon - 402 104
PAN : AACAS9027J
10 399/PUN/2022 Sakal Press Kamgar Sahakari PCIT-3, Pune 2017-18
Pathapedi Limited,
595, Budhwar Peth,
Pune 411 001
PAN : AAFFS1927E
11 400/PUN/2022 Shrinath Nagari Sahakari PCIT-4, Pune 2017-18
Patsanstha Marydit,
S.No.40, Vishal Heights,
Subashnagar, Tingarenagar,
Pune 411 015
PAN : AACAS3126Q
12 431/PUN/2022 Dhanashri Multi State PCIT-4, Pune 2017-18
Cooperative Credit Society
Limited,
Damaji Road,
Murlidhar Chowk,
Mangalwedha,
Tal. Mangalwedha,
Solapur 413 305
PAN : AABAD1879N
13 432/PUN/2022 Manorama Multi State PCIT-4, Pune 2017-18
Cooperative Credit Society
Limited,
Plot No.4, Manorama Complex,
Kotnis Nagar, Bijapur Road,
Solapur 413 004
PAN : AACAM5968L
14 448/PUN/2022 Shree Kedareshwar Nagari PCIT-4, Pune 2017-18
Sahakari Patsanstha Maryadit,
Shop No.4, House No.1376,
Near Somaji Bus Stop,
Kondhawa Bk, Pune 411048
PAN : AACAS7903B
15 460/PUN/2022 Jaywant Multi State Credit PCIT-3, Pune 2017-18
Cooperative Society Limited,
Sr.No.21/1, Sawant Corner,
Pune-Mumbai Bypass, Katraj,
Pune 411 046
PAN : AABAJ5245Q
3
Marathwada Krishi Vidyapeeth
Karmachari Sahkari Patsanstha Ltd. and others
16 492/PUN/2022 Bhimashankar SSK Ltd., National E- 2018-19
A/P. Pargaon, Tal. Ambegaon, Assessment
Dist. Pune 412 406 Centre, Delhi
PAN : AAAAB0949G
17 504/PUN/2022 Hari Ganga Cooperative PCIT-4, Pune 2017-18
Housing Society Limited,
S.No.129, Hissa No.1/2,
Plot No. 1 & 2, Yerwada,
Pune 411 006
PAN : AAAAH3944D
18 522/PUN/2022 Janahit Nagari Sahakari PCIT-4, Pune 2017-18
Pathpedhi Limited,
2035, Aacharya Atre Chowk,
Camp, Pune 411 001
PAN : AAAAJ0175A
Assessee(s) by Shri Nikhil S. Pathak & Shri Ajinkya M. Vaishampayan
Shri Kishor B. Phadke, Shri Pramod.S. Shingte,
Shri Hemant C. Shah, Shri Abhay Avchat and
Shri M.R. Bhagwat
Revenue by Shri Keyur Patel, CIT-DR
Date of hearing 20-12-2022
Date of 21-12-2022
pronouncement
आदे श / ORDER
PER BENCH:
All the above appeals have been preferred by different assessees in relation to the A.Yrs.2014-15, 2017-18 & 2018-19 agitating the passing of the order by the ld. Principal Commissioner of Income-tax (PCIT) u/s.263 of the Income-tax Act, 1961 holding that the grant of deduction u/s.80P by the Assessing Officer (AO) in respect of interest income earned from other credit cooperative societies or Nationalised banks led to the passing of erroneous 4 Marathwada Krishi Vidyapeeth Karmachari Sahkari Patsanstha Ltd. and others assessment orders prejudicial to the interest of the Revenue.
Because of the commonness of the issue, we are proceeding to dispose of all the appeals by the consolidated order for the sake of convenience.
2. There is a delay in presenting the appeals of 237 days (ITA No. 102/PUN/2020), 04 days (ITA No. 431 & 432/PUN/2022), 36 days (ITA No.460/PUN/2022), 05 days (ITA No.504/PUN/2022) and 49 days (ITA No.522/PUN/2022). In some of the appeals, the respective assessees have filed affidavits; whilst in others, prima- facie, the delay pertains to the covid-19 pandemic period. We are satisfied with the reasons so stated for the delay by the respective assessees. Hence, the delay in filing the appeals is condoned by virtue of the affidavits and the judgment of the Hon'ble Supreme Court in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC) read with judgment in Cognizance for Extension of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314.
3. Further, there is no appearance from the side of the assessees in ITA No.102/PUN/2020, ITA No.460/PUN/2022, ITA No.492/PUN/2022 and ITA No.522/PUN/2022 despite notice. We are, therefore, proceeding with these appeals ex parte qua the assessee after hearing the ld. DR.
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Marathwada Krishi Vidyapeeth Karmachari Sahkari Patsanstha Ltd. and others
4. Succinctly, the facts common in all these cases are that the assesses filed returns claiming deduction u/s.80P in respect of interest income which was allowed by the respective AOs. The ld. PCIT(s) invoked the jurisdiction u/s 263 of the Act and disputed the allowability of the claim of deduction u/s.80P(2)(a)(i) in some cases and under 80P(2)(d) in others, thereby holding the assessment orders to be erroneous and prejudicial to the interest of the Revenue. Aggrieved thereby, the assessees have approached the Tribunal.
5. We have heard the rival submissions and gone through the relevant material on record. It is seen that all the cases are based on the ld. PCIT(s)' understanding that the allowing of the deduction by the AO(s) u/s 80P is contrary to law. Insofar as the allowability of deduction u/s.8P(2)(a)(i) is concerned, we find that the Pune Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) has decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has 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 6 Marathwada Krishi Vidyapeeth Karmachari Sahkari Patsanstha Ltd. and others (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of 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. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (supra). No direct judgment from the Hon'ble jurisdictional High Court on the point having been pointed out, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). The position continues to remain the same before this Tribunal also. We thus hold that no exception can be taken to the granting of deduction on interest income by the AO u/s 80P(2)(a)(i) of the Act.
6. Coming to the other cases involving deduction u/s.80P(2)(d) of the Act, it is crystal clear from the language of the provision 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 7 Marathwada Krishi Vidyapeeth Karmachari Sahkari Patsanstha Ltd. and others 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 assessees are also Co-operative society registered under the Act and hence qualify for the grant of the deduction. Similar view has been taken by the Pune Tribunal in several cases including The Sesa Goa Employees Coop. Credit Society Ltd. Vs. ACIT (ITA No.203/PUN/2019) vide order dated 16-11-2022).
7. In view of the foregoing, we hold that the impugned orders questioning the deduction u/s.80P(2)(a)(i)/80P(2)(d) in respect of interest income, cannot be sustained.
8. In the result, all the appeals are allowed.
Order pronounced in the Open Court on 21st December, 2022.
Sd/- Sd/-
(PARTHA SARATHI CHAUDHURY) (R.S.SYAL)
JUDICIAL MEMBER VICE PRESIDENT
पण
ु े Pune; दनांक Dated : 21 December, 2022
st
Satish
8
Marathwada Krishi Vidyapeeth
Karmachari Sahkari Patsanstha Ltd. and others आदे श क त ल प अ े षत/Copy of the Order is forwarded to:
1. अपीलाथ / The Appellant;
2. यथ / The Respondent;
3. The CIT(A) concerned
4. The CIT concerned
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे "A" / DR 'A', ITAT, Pune
6. गाड फाईल / Guard file आदे शानस ु ार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date
1. Draft dictated on 20-12-2022 Sr.PS
2. Draft placed before author 21-12-2022 Sr.PS
3. Draft proposed & placed before the JM second member
4. Draft discussed/approved by Second JM Member.
5. Approved Draft comes to the Sr.PS/PS Sr.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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