BASAVESHWAR GRAMIN BIGARSHETI SAHAKARI PAT SANSTHA MARYAJATH MANGALWAR PETH JATH,SANGLI vs. INCOME TAX OFFICER, WARD-2, SANGLI, SANGLI
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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: SHRI R.S. SYAL
आदेश / ORDER
PER R.S. SYAL, VP:
This appeal by the assessee arises out of the order dated
22-05-2023 passed by the CIT(A) in National Faceless Appeal
Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also
called ‘the Act’) in relation to the assessment year 2020-21.
There is no appearance from the side of the assessee despite
notice. I have heard the ld. DR and gone through the relevant
material on record. I, therefore, proceed to dispose of the appeal on
merits.
2 ITA No.826/PUN/2023
Briefly stated, the facts of the case are that the assessee is a
cooperative credit society engaged in the business of banking or
providing credit facilities to its members. The assessee claimed
deduction u/s.80P(2)(a)(i) under Chapter VIA of the Income-tax Act,
1961 (hereinafter also called ‘the Act’) for the equal amount leading
to total income at Nil. During the course of assessment proceedings,
the Assessing Officer (AO) observed that the assessee earned interest
amounting to Rs.30,64,302/-. He worked out the proportionate
interest income from cooperative banks forming part of business
income at Rs.10,27,355/-, which in his opinion did not qualify for
deduction u/s.80P(2)(a)(i). Eventually, the AO disallowed the
deduction on this amount. The ld. CIT(A) countenanced the view
point of the AO on this score, against which the assessee has
approached the Tribunal.
The sole issue assailed in this appeal is no more res integra. The
Pune Benches of the Tribunal in Rena Sahakari Sakhar Karkhana
Ltd. Vs. Pr.CIT (ITA No.1249/PUN/2018) has held, vide its order
dated 07-01-2022, 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
3 ITA No.826/PUN/2023
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 assessee
is also a co-operative society, being, registered as such.
Respectfully following the decision of the Division Bench as
discussed supra, I overturn the impugned order and direct to grant
deduction u/s.80P of the Act on the said interest income.
In the result, the appeal is allowed. Order pronounced in the Open Court on 28th July, 2023.
Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 28th July, 2023 सतीश
4 ITA No.826/PUN/2023
आदेश की �ितिलिप अ�ेिषत/Copy of the Order is forwarded to: अपीलाथ� / The Appellant; 1. ��थ� / The Respondent 2. 3. The Pr.CIT concerned 4. DR, ITAT, ‘SMC’ Bench, Pune गाड� फाईल / Guard file. 5.
आदेशानुसार/ BY ORDER,
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
Date 1. Draft dictated on 28-07-2023 Sr.PS 2. Draft placed before author 28-07-2023 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.
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