M/SNLC HOWSICOS,CUDDALORE vs. INCOMETAX OFFICER, CUDDALORE

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ITA 899/CHNY/2020Status: DisposedITAT Chennai04 January 2023AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a cooperative society is eligible for deduction on interest received from TAICO Bank, which is also a cooperative society, following a previous coordinate bench decision. The AO was directed to ascertain if TAICO Bank is registered as a cooperative society.

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P(2)(d) for interest received from TAICO Bank. The AO initially allowed it, but the CIT(A) denied it, stating the deduction is only for interest from a cooperative society, not a cooperative bank.

What were the issues?

Whether interest received from a cooperative bank is eligible for deduction under Section 80P(2)(d) for a cooperative society.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपील सं./ (िनधा1रण वष1 / Assessment Year: 2016-17) M/s. NLC Howsicos ITO. बनाम Old CMC Campus Ward-2, Opp.Thermal Power Station-I Cuddalore. / Vs. Neyveli, Cuddalore-607 807. "थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AAAAN-2264-Q (अपीलाथ%/Appellant) : (&'थ% / Respondent) अपीलाथ% की ओरसे/ Appellant by : Written submissions dated 15.11.2022 &'थ% की ओरसे/Respondent by : Shri G.Johnson,(Addl.CIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 04-01-2023 घोषणा की तारीख /Date of Pronouncement : 04-01-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole substantive issue that fall for our consideration in the captioned appeal is assessee’s claim of deduction u/s 80P(2)(d) for Rs.28.05 Lacs against interest received from The Taminadu Industrial Cooperative Bank Ltd. (TAICO Bank). Both sides have filed written submissions which have duly been considered and the issue is adjudicated as under. The assessee society is duly registered as a co- operative society under Tamil Nadu Co-operative Societies Act, 1983.

2.

In assessment order dated 29.12.2016, Ld. AO did not disturb the deduction claimed by the assessee. However, Ld. CIT(A) denied impugned deduction on the ground that TAICO Bank was a co- operative bank whereas in terms of statutory provisions, the deduction would be available only if the interest was received from a co-operative society only and not in case if interest was received from a co- operative bank. Aggrieved, the assessee is in further appeal before us.

3.

We find that this issue has been decided by Tribunal in assessee’s favor in the case of M/s NLC Indcoserve vs. ITO (ITA No.900/Chny/2020 dated 08.06.2022). A copy of the same is on record. The co-ordinate bench, considering the decision of Hon’ble High Court of Madras in CIT vs. The Salem Agriculture Producers Co-operative Marketing Society Ltd. (TCA No.5/2015 dated 10.08.2016) held that a co-operative society would be eligible to claim impugned deduction on interest received from The Taminadu Industrial Cooperative Bank Ltd. (TAICO Bank) which is also a co-operative society. The only concern raised by Ld. Sr. DR is that the fact whether TAICO Bank has been registered as a co-operative society or not is not borne out of the case records. To address the same, we direct Ld. AO to ascertain whether TAICO Bank is registered as a co-operative society. If so, the assessee would be eligible to claim impugned deduction in terms of above decision of the Tribunal.

4.

The appeal stands allowed for statistical purposes. Order pronounced on 04th January, 2023. (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) "ाियक सद2 /JUDICIAL MEMBER लेखा सद2 /ACCOUNTANT MEMBER चे6ई / Chennai; िदनांक / Dated : 04.01.2023 DS आदेश की Uितिलिप अ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""यथ"/Respondent 3. आयकर आयु" (अपील)/CIT(A) 4. आयकर आयु"/CIT 5. िवभागीय "ितिनिध/DR 6. गाड" फाईल/GF

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