KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY LIMITED,PANDHARPUR vs. ITO WARD 2, PANDHARPUR

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ITA 545/PUN/2026Status: DisposedITAT Pune15 May 2026AY 2020-215 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income earned by a cooperative society on deposits held with cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act. The Tribunal relied on previous decisions of the ITAT and High Court judgments.

What were the facts?

The assessee, a cooperative society, claimed deduction for interest income earned on investments held with cooperative banks. The Assessing Officer denied this deduction, and the assessee's appeals to the CIT(A) were unsuccessful.

What were the issues?

Whether interest income earned by a cooperative society on investments made with cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

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, PUNE

Before: HON’BLE MANISH BORAD & HON’BLE PAVAN KUMAR GADALE

For Respondent: Shri Pramod Shahakar, JCIT

आदेश / ORDER

PER MANISH BORAD, ACCOUNTANT MEMBER: These two appeals are filed by the Assessee against the different orders of Ld. NFAC, Delhi common dated 26-Dec-2025 for the Assessment Year 2020-21 arising out of the different assessment orders framed u/s 143(3) r.w.s 144B of the Act dated 05.08.2022.

2.

At the outset, Ld. Counsel for the assessee submitted that the issue raised in the instant appeals regarding the allowability of deduction u/s 80(P)(2)(d) of the Act for the interest income earned by the assessee cooperative society on the investments held with cooperative banks has also came for adjudication in assessee own

ITA 545 & 551/PUN/2026 KARMAYOGI S R PARICHARAK KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY STATE COOPERATIVE CREDIT SOCIETY LIMITED case for A.Y 2021 e for A.Y 2021-22 vide ITA No. 2476/PUN/2024 dated 22 vide ITA No. 2476/PUN/2024 dated 22 vide ITA No. 2476/PUN/2024 dated 29.08.2025 and the claim of interest earned on investment held that 29.08.2025 and the claim of interest earned on investment held that 29.08.2025 and the claim of interest earned on investment held that 29.08.2025 and the claim of interest earned on investment held that cooperative bank has been allowed as deduction u/s 80(P)(2)(d) of cooperative bank has been allowed as deduction u/s 80(P)(2)(d) of cooperative bank has been allowed as deduction u/s 80(P)(2)(d) of cooperative bank has been allowed as deduction u/s 80(P)(2)(d) of the Act.

3.

On the other hand, ld. DR supported the order of ld. CIT(A) On the other hand, ld. DR supported the order of ld. CIT(A) On the other hand, ld. DR supported the order of ld. CIT(A)

4.

We have heard the rival have heard the rival contentions and contentions and perused the material perused the material placed before placed before us. The assessee is a cooperative society and for the The assessee is a cooperative society and for the The assessee is a cooperative society and for the A.Y 2018-19 and A.Y 2020 19 and A.Y 2020-21 deduction u/s 80P of the Act was 21 deduction u/s 80P of the Act was 21 deduction u/s 80P of the Act was denied for the interest on deposit held with cooperative banks denied for the interest on deposit held with cooperative banks denied for the interest on deposit held with cooperative banks denied for the interest on deposit held with cooperative banks amounting to Rs. 16,49,431/ nting to Rs. 16,49,431/- and Rs. 49,73,034/ and Rs. 49,73,034/-. The assessee . The assessee failed to get any relief from ld. CIT(A) and now the assessee is appeal failed to get any relief from ld. CIT(A) and now the assessee is appeal failed to get any relief from ld. CIT(A) and now the assessee is appeal failed to get any relief from ld. CIT(A) and now the assessee is appeal before this Tribunal. before this Tribunal.

5.

We observe We observe that the quantum of interest earned on deposits that the quantum of interest earned on deposits that the quantum of interest earned on deposits held with cooperative banks for the impugned assessment years is held with cooperative banks for the impugned assessment years is held with cooperative banks for the impugned assessment years is held with cooperative banks for the impugned assessment years is not in dispute as the necessary details are appearing in the body of not in dispute as the necessary details are appearing in the body of not in dispute as the necessary details are appearing in the body of not in dispute as the necessary details are appearing in the body of assessment order. This assessment order. This issue has come for adjudication before this issue has come for adjudication before this issue has come for adjudication before this Tribunal in many cases and it has been consistently held that nal in many cases and it has been consistently held that nal in many cases and it has been consistently held that nal in many cases and it has been consistently held that interest income interest income earned on deposits held held with cooperative banks is with cooperative banks is eligible for deduction u/s 80(P)(2)(d) of eligible for deduction u/s 80(P)(2)(d) of eligible for deduction u/s 80(P)(2)(d) of the Act. Though the the Act. Though the assessee has relied on decision of this Tribunal in assessee’s own relied on decision of this Tribunal in assessee’s own relied on decision of this Tribunal in assessee’s own case for A.Y 2021 e for A.Y 2021-22 but in that case main issue was disallowance 22 but in that case main issue was disallowance 22 but in that case main issue was disallowance of such deduction of such deduction in the return processed u/s 143(1)(a) of the Act. in the return processed u/s 143(1)(a) of the Act. in the return processed u/s 143(1)(a) of the Act. So far as issue raised in the instant appeal is concerned, we find So far as issue raised in the instant appeal is concerned, we find So far as issue raised in the instant appeal is concerned, we find So far as issue raised in the instant appeal is concerned, we find that the same has been dealt in another decision of this that the same has been dealt in another decision of this that the same has been dealt in another decision of this Tribunal in Tribunal in the case of Vishnuanna Sahakari Kharedi Vikri Sangh Limited, Vishnuanna Sahakari Kharedi Vikri Sangh Limited, Vishnuanna Sahakari Kharedi Vikri Sangh Limited, in ITA No. 3005/Pun/2025 dated 03.02.2026, and the relevant and the relevant ITA No. 3005/Pun/2025 dated 03.02.2026, ITA No. 3005/Pun/2025 dated 03.02.2026, observation of this Tribunal reads as under: observation of this Tribunal reads as under: observation of this Tribunal reads as under:

6.

I have heard the rival contentions and perused the record placed before 6. I have heard the rival contentions and perused the record placed before 6. I have heard the rival contentions and perused the record placed before 6. I have heard the rival contentions and perused the record placed before me. I note me. I note that ld. Assessing Officer while completing the assessment that ld. Assessing Officer while completing the assessment that ld. Assessing Officer while completing the assessment u/s.143(3) r.w.s.144B of u/s.143(3) r.w.s.144B of the Act has denied the deduction u/s.80P of the Act has denied the deduction u/s.80P of the Act has denied the deduction u/s.80P of the Act for the interest income earned by the Act for the interest income earned by the assessee at Rs.1,52,829/- the assessee at Rs.1,52,829/ and the short issue for my considerati and the short issue for my consideration is whether the on is whether the interest amount of interest amount of Rs.1,52,829/ Rs.1,52,829/- earned by the assessee out of the investments held earned by the assessee out of the investments held with with Cooperative Banks is eligible for deduction u/s.80P of the Act. Cooperative Banks is eligible for deduction u/s.80P of the Act. Cooperative Banks is eligible for deduction u/s.80P of the Act.

ITA 545 & 551/PUN/2026 KARMAYOGI S R PARICHARAK KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY STATE COOPERATIVE CREDIT SOCIETY LIMITED 7. Before me, ld. Counsel for the assessee 7. Before me, ld. Counsel for the assessee 7. Before me, ld. Counsel for the assessee claimed that alleged sum is claimed that alleged sum is interest earned from investments made with Cooperative banks. However, interest earned from investments made with Cooperative banks. However, interest earned from investments made with Cooperative banks. However, interest earned from investments made with Cooperative banks. However, necessary details in support of this fact remains to be filed nor has been necessary details in support of this fact remains to be filed nor has been necessary details in support of this fact remains to be filed nor has been necessary details in support of this fact remains to be filed nor has been observed in the assessment order. He further submitted that the observed in the assessment order. He further submitted that the observed in the assessment order. He further submitted that the observed in the assessment order. He further submitted that the assessee’s case i assessee’s case is squarely covered by plethora of decisions passed by s squarely covered by plethora of decisions passed by s squarely covered by plethora of decisions passed by this Tribunal on this very issue and therefore prayed for deleting the this Tribunal on this very issue and therefore prayed for deleting the this Tribunal on this very issue and therefore prayed for deleting the this Tribunal on this very issue and therefore prayed for deleting the disallowance. disallowance. 8. On the other hand, ld. Departmental Representative supported the 8. On the other hand, ld. Departmental Representative supported the 8. On the other hand, ld. Departmental Representative supported the 8. On the other hand, ld. Departmental Representative supported the orders of the lower authorities. orders of the lower authorities. 9. There is no 9. There is no dispute that the assessee is a registered cooperative society dispute that the assessee is a registered cooperative society dispute that the assessee is a registered cooperative society and is providing credit facilities to its Members and derived interest income and is providing credit facilities to its Members and derived interest income and is providing credit facilities to its Members and derived interest income and is providing credit facilities to its Members and derived interest income on investments kept with Cooperative Societies/Banks. The provisions of on investments kept with Cooperative Societies/Banks. The provisions of on investments kept with Cooperative Societies/Banks. The provisions of on investments kept with Cooperative Societies/Banks. The provisions of section 80P(2)(d) of the Act, provides for section 80P(2)(d) of the Act, provides for deduction towards any income by deduction towards any income by deduction towards any income by way of interest or dividend derived by a co way of interest or dividend derived by a co way of interest or dividend derived by a co-operative society from its operative society from its investment with any other co investment with any other co-operative society. The term Cooperative operative society. The term Cooperative operative society. The term Cooperative Society has been defined u/s. 2(19) of the Act, which includes a co Society has been defined u/s. 2(19) of the Act, which includes a co Society has been defined u/s. 2(19) of the Act, which includes a co- Society has been defined u/s. 2(19) of the Act, which includes a co operative societ operative society registered under the Cooperative Societies Act, 1912 or y registered under the Cooperative Societies Act, 1912 or y registered under the Cooperative Societies Act, 1912 or under any other law for the time being in force in any state for the under any other law for the time being in force in any state for the under any other law for the time being in force in any state for the under any other law for the time being in force in any state for the registration of cooperative societies. Perusal of the aforesaid definition registration of cooperative societies. Perusal of the aforesaid definition registration of cooperative societies. Perusal of the aforesaid definition registration of cooperative societies. Perusal of the aforesaid definition would make it clear that cooperative Society means a c would make it clear that cooperative Society means a c would make it clear that cooperative Society means a cooperative society ooperative society registered under Cooperative Societies Act, 1912 as defined under the Act, registered under Cooperative Societies Act, 1912 as defined under the Act, registered under Cooperative Societies Act, 1912 as defined under the Act, registered under Cooperative Societies Act, 1912 as defined under the Act, be it a co be it a co-operative society carrying on banking business or cooperative operative society carrying on banking business or cooperative operative society carrying on banking business or cooperative society carrying on the other business or society carrying on the other business or society carrying on the other business or society carrying on the other business or a cooperative bank. a cooperative bank. a cooperative bank. a cooperative bank. Interest/dividend income ea Interest/dividend income earned from a cooperative society from its rned from a cooperative society from its rned from a cooperative society from its investment with other cooperative societies, whether such society is investment with other cooperative societies, whether such society is investment with other cooperative societies, whether such society is investment with other cooperative societies, whether such society is cooperative bank or not is to be considered for allowing deduction cooperative bank or not is to be considered for allowing deduction cooperative bank or not is to be considered for allowing deduction cooperative bank or not is to be considered for allowing deduction u/s.80P(2)(d) of the Act. u/s.80P(2)(d) of the Act. 10. This issue is no longer res integra by virtue of 10. This issue is no longer res integra by virtue of 10. This issue is no longer res integra by virtue of catena of decisions catena of decisions passed by this Tribunal on this very issue and the assessee’s case is passed by this Tribunal on this very issue and the assessee’s case is passed by this Tribunal on this very issue and the assessee’s case is passed by this Tribunal on this very issue and the assessee’s case is squarely covered in its favour. In the case of Thorapadi Urban Co squarely covered in its favour. In the case of Thorapadi Urban Co squarely covered in its favour. In the case of Thorapadi Urban Co-op Credit op Credit Society Ltd & Others vs ITO in W.P. Nos. 11172 and others, judgment Society Ltd & Others vs ITO in W.P. Nos. 11172 and others, judgment Society Ltd & Others vs ITO in W.P. Nos. 11172 and others, judgment Society Ltd & Others vs ITO in W.P. Nos. 11172 and others, judgment dated 10.10.2023 whic dated 10.10.2023 which the assessee relied upon, the Hon'ble High Court h the assessee relied upon, the Hon'ble High Court h the assessee relied upon, the Hon'ble High Court of Madras following the decision of Division Bench of Hon'ble High Court of of Madras following the decision of Division Bench of Hon'ble High Court of of Madras following the decision of Division Bench of Hon'ble High Court of of Madras following the decision of Division Bench of Hon'ble High Court of Madras in the case of CIT vs The Salem Agricultural Producers Co Madras in the case of CIT vs The Salem Agricultural Producers Co Madras in the case of CIT vs The Salem Agricultural Producers Co- Madras in the case of CIT vs The Salem Agricultural Producers Co operative Marketing Society Ltd in Tax Case Appeal No. 5 of 2015 operative Marketing Society Ltd in Tax Case Appeal No. 5 of 2015 operative Marketing Society Ltd in Tax Case Appeal No. 5 of 2015 held that held that a cooperative society is entitled to avail the benefit u/s.80P(2)(d) of the Act. a cooperative society is entitled to avail the benefit u/s.80P(2)(d) of the Act. a cooperative society is entitled to avail the benefit u/s.80P(2)(d) of the Act. a cooperative society is entitled to avail the benefit u/s.80P(2)(d) of the Act. 6. In light of the above decision as well as other decis In light of the above decision as well as other decis In light of the above decision as well as other decisions of this ions of this Tribunal referred Tribunal referred above we find that the same is squarely applicable above we find that the same is squarely applicable above we find that the same is squarely applicable on the facts of the instant c on the facts of the instant case and that the ssessee deserves to be ase and that the ssessee deserves to be ase and that the ssessee deserves to be allowed the deduction u/s 80(P)(2)(d) of the Act for the interest allowed the deduction u/s 80(P)(2)(d) of the Act for the interest allowed the deduction u/s 80(P)(2)(d) of the Act for the interest allowed the deduction u/s 80(P)(2)(d) of the Act for the interest income income of of Rs. Rs. 49,73,034/ 49,73,034/- and and 16,49,431/ 16,49,431/- earned earned from from investments / deposits held with cooperative banks for A.Y 2020 investments / deposits held with cooperative banks for A.Y 2020 investments / deposits held with cooperative banks for A.Y 2020-21 21 and 2018-19 respectively. Fi 19 respectively. Finding of ld. CIT(A) is set aside and nding of ld. CIT(A) is set aside and nding of ld. CIT(A) is set aside and grounds of appeal raised by the assessee are appeal raised by the assessee are appeal raised by the assessee are allowed.

ITA 545 & 551/PUN/2026 KARMAYOGI S R PARICHARAK KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY STATE COOPERATIVE CREDIT SOCIETY LIMITED 7. In the result, both appeals filed by the assessee In the result, both appeals filed by the assessee In the result, both appeals filed by the assessee for A.Y 2020 for A.Y 2020- 21 & 2018-19 19 are allowed.

Order pronounced in the open court on Order pronounced in the open court on Order pronounced in the open court on 15.05.2026.

Sd/- Sd/- PAVAN KUMAR GADALE PAVAN KUMAR GADALE MANISH BORAD JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER

Pune Dated: 15.05.2026 6

ITA 545 & 551/PUN/2026 KARMAYOGI S R PARICHARAK KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY STATE COOPERATIVE CREDIT SOCIETY LIMITED Copy to: KARMAYOGI S R PARICHARAK MULTI KARMAYOGI S R PARICHARAK MULTI STATE COOPERATIVE CREDIT SOCIETY STATE COOPERATIVE CREDIT SOCIETY LIMITED, 1 FIRST FLOOR, TILAK SMARAK MANDIR, FIRST FLOOR, TILAK SMARAK MANDIR, STATION ROAD STATION ROAD, PANDHARPUR PANDHARPUR-413306, MAHARASHTRA MAHARASHTRA ITO WARD 2, ITO WARD 2, 2 INDRAPRASTHA, STATION ROAD INDRAPRASTHA, STATION ROAD, PANDHARPUR PANDHARPUR-413306, MAHARASHTRA 3 THE PCIT / CIT THE PCIT / CIT, 4 THE D.R., ITAT, , ITAT, PUNE BENCH 5 GUARD FILE

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