NASHIK ROAD NAGARI SAHKARI PATSANSTHA MARYADIT,NASHIK vs. INCOME TAX OFFICER, WARD-1(2), NASHIK, NASHIK

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ITA 480/PUN/2023Status: DisposedITAT Pune07 June 2023AY 2014-154 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following its own precedent and that of the assessee for a prior assessment year, held that deduction under Section 80P(2)(a)(i) is allowable for interest income earned from deposits with nationalized banks.

What were the facts?

The assessee, a cooperative credit society, claimed deduction under Section 80P for interest income earned from deposits with a nationalized bank. The Assessing Officer and CIT(A) denied this deduction.

What were the issues?

Whether interest income earned by a cooperative society from deposits with a nationalized bank is eligible for deduction under Section 80P of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, PUNE

Before: SHRI R.S. SYAL

For Appellant: Shri Sanket Joshi
For Respondent: Shri Gurmel Singh

आदेश / ORDER

PER R.S. SYAL, VP:

1.

This appeal by the assessee is directed against the order dated 25-02-2023 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 2014-15.

2.

The only issue raised in this appeal is against denial of deduction u/s.80P in respect of interest income earned from the deposits kept with Nationalised bank.

Nashik Road Nagari Sahkari Patsanstha Maryadit

3.

Briefly stated, the facts of the case are that the asessee is a Cooperative credit society engaged in the business of providing credit facilities to its members. It claimed deduction u/s.80P(2) in respect of interest income of Rs.3,04,556/- from the deposits kept with Bank of Baroda. The Assessing Officer (AO) did not allow the deduction, which action came to be affirmed in the first appeal.

Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

4.

Having heard the rival submissions and perused the relevant material on record, it is seen that the issue of granting deduction u/s.80P(2)(a)(i) in respect of interest income from nationalized banks has been decided in favour of the assessee by the Tribunal in several cases including the assessee’s own case for the immediately preceding assessment year 2013-14. A copy of such order dated 27- 12-2021 has been placed on record. Relevant discussion has been made in para No.9 granting deduction u/s 80P(2)(a)(i) on account of interest received from the deposits kept with Bank of Baroda in the form of Fixed deposit. Such decision has not been modified of reversed in any manner. Respectfully following the precedent, I order to grant deduction u/s 80P on the interest income earned from Bank of Baroda.

Nashik Road Nagari Sahkari Patsanstha Maryadit

5.

In the result, the appeal is allowed. Order pronounced in the Open Court on 07th June, 2023.

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