Income Tax Appellate Tribunal - Pune
Mahatma Phule Gramin Bigar Sheti ... vs Income-Tax Officer, Ward - 2,, ... on 22 February, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "SMC", PUNE
BEFORE SHRI R.S. SYAL, VICE PRESIDENT
आयकर अपील सं. / ITA No.541/PUN/2018
िनधा रण वष / Assessment Year : 2015-16
Mahatma Phule Gramin Vs. ITO, Ward-2,
Bigar Sheti Sahakari Pat Pandharpur
Sanstha Maryadit,
At Post Malinagar,
Tal. Mashiras,
Dist. Solapur - 413108
PAN : AAAAM4675Q
(Appellant) (Respondent)
Appellant by Shri Sunil Ganoo
Respondent by Shri M.K. Verma
Date of hearing 21-02-2019
Date of pronouncement 22-02-2019
आदेश / ORDER
PER R.S.SYAL, VP :
This appeal by the assessee arises out of the order passed by the CIT(A)-7, Pune on 09-01-2018 in relation to the assessment year 2015-16.
2. The only issue raised in this appeal is against not allowing deduction u/s.80P of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to interest income 2 ITA No.541/PUN/2018 Mahatma Phule Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit of Rs.8,88,884/- earned from Fixed Deposits kept with the Nationalized Banks.
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 3 ITA No.541/PUN/2018 Mahatma Phule Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit 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).
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 4 ITA No.541/PUN/2018 Mahatma Phule Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit income earned on Fixed Deposits kept with Nationalized banks. The deduction is directed to be given.
6. In the result, the appeal is allowed.
Order pronounced in the Open Court on 22nd February, 2019.
Sd/-
(R.S.SYAL) उपा य VICE PRESIDENT उपा य / पुणे Pune; दनांक Dated : 22nd February, 2019 सतीश आदेश क ितिलिप अ िे षत / Copy of the Order is forwarded to :
1. अपीलाथ / The Appellant;
2. यथ / The Respondent;
3. आयकर आयु (अपील) / The CIT (Appeals)-7, Pune
4. The Pr. CIT-6, Pune
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे "SMC" / DR 'SMC', ITAT, Pune;
6. गाड फाईल / Guard file.
// True copy // आदेशानुसार/ ार BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune 5 ITA No.541/PUN/2018 Mahatma Phule Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit Date
1. Draft dictated on 21-02-2019 Sr.PS
2. Draft placed before author 21-02-2019 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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