SOLAPUR DCC BANK EMPLOYEES CO- OPERATIVE SOCIETY LIMITED,SOLAPUR vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX -4, PUNE
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Income Tax Appellate Tribunal, PUNE BENCH, ‘B’ PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER R.S. SYAL, VP :
This appeal by the assessee is directed against the order
dt. 23-03-2022 passed by the Pr.CIT, Pune-4 u/s.263 of the Income-
tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the
assessment year 2017-18.
The appeal is time barred by 390 days. The assessee has filed
an affidavit explaining the reasons for the delay. We are satisfied
with the reasons. The delay in filing the appeal is, therefore,
condoned and the appeal is admitted for disposal on merits.
2 ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd.
Succinctly, the facts of the case are that the assesse filed its
return claiming deduction u/s.80P in respect of interest income
earned from the deposits kept with Cooperative Banks/Societies,
which was allowed by the AO. The ld. PCIT invoked the
jurisdiction u/s 263 of the Act and held the assessment order to be
erroneous and prejudicial to the interest of the revenue on account
of allowing the deduction either u/s.80P(2)(a)(i) or u/s.80P(2)(d) in
respect of such interest income. Aggrieved thereby, the assessee has
come up in appeal before the Tribunal.
We have heard the rival submissions and gone through the
relevant material on record. The ld. PCIT has held the assessment
order to be erroneous and prejudicial to the interest of the Revenue
only on the ground that the claim of deduction u/s.80P on the
interest income was not in order. In this regard, it is observed 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
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-
3 ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd.
operative society registered under the Co-operative Societies Act,
1912 or under any law for the time being in force. Similar view has
been taken by the Pune Benches of the Tribunal in several cases
including The Sesa Goa Employees Coop. Credit Society Ltd. Vs.
ACIT (ITA No.203/PUN/2019, order dated 16-11-2022).
In view of the foregoing discussion, we hold that the
impugned order cannot be sustained. The same is, therefore,
overturned.
In the result, the appeal is allowed.
Order pronounced in the Open Court on 23rd August, 2023.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 23rd August, 2023 सतीश आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The respondent 2. DR, ITAT, ‘B’ Bench, Pune 3. गाड� फाईल / Guard file. 4.
आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
4 ITA No.712/PUN/2023 Solapur DCC Bank Emp. Coop Society Ltd.
Date 1. Draft dictated on 22-08-2023 Sr.PS 2. Draft placed before author 23-08-2023 Sr.PS 3. Draft proposed & placed before JM the second member 4. Draft discussed/approved by JM Second Member. 5. Approved Draft comes to the Sr.PS Sr.PS/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. *
