NAMDEO KADAM GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA LTD,SATARA vs. INCOME TAX OFFICER, WARD-3, SATARA, SATARA

These two appeals by the assessee arise out of the ex parte orders dated 23-03-2023 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 years 2018-19 & 2020-21.

It is seen that the assessment orders in these cases were passed u/s.143(3) of the Act disallowing the amount of deduction claimed by the assessee u/s.80P amounting to Rs.22,40,771/- and Rs.26,85,471/- towards interest income earned by the assessee from co-operative banks. The ld. CIT(A) affirmed the view point of the AO for both the years under consideration. Aggrieved thereby, the assessee has approached the Tribunal.

I have heard both the sides and gone through the relevant material on record. It is seen that the issue assailed in both the appeals under consideration is of granting deduction u/s 80P of the Act on interest income earned from various cooperative banks. The extant issue is no more res integra in view of the catena of decisions delivered by the Pune Benches. The Pune Bench 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.

In the result, both the appeals are allowed. Order pronounced in the Open Court on 18th May, 2023.