VAIBHAVWADI GRAMIN BIGARSHETI SAHAKARI PATSANSTHA MARYADIT VAIBHAVWADI,VAIBHAVWADI vs. INCOME TAX OFFICER, KUDAL

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2643/PUN/2026 िनधा�रण वष� / Assessment Year : 2018-19 Vaibhavwadi Gramin Vs. ITO, National e- Bigarsheti Sahakari Assessment Centre, Patsanstha Maryadit Delhi. Vaibhavwadi, 1201, Vaibhavwadi, S.O. Vaibhavwadi, Sindhudurg- 416810 PAN : AAAAV7831M Appellant Respondent Assessee by : Shri Pramod S. Shingte Revenue by : Smt. R. M. Brindha Date of hearing : 29.07.2026 Date of pronouncement : 12.10.2026 आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 06.03.2026 passed by Ld. CIT(A)/NFAC for the assessment year 2018-19. 2. There is delay in filing of the present appeal. After going through the application for condonation of delay, we are satisfied with the reasons mentioned in the application for condonation of

2 ITA No.2643/PUN/2026 delay duly supported by an affidavit that the applicant was prevented by sufficient & reasonable cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal. 3. The appellant has raised the following grounds of appeal :- “1. On the facts and circumstances of the case and in law the CIT(A), NFAC erred in confirming the action of the AO of denying deduction under section 80P in respect interest earned by the appellant society on deposits with other co-operative banks, not accepting the submission of the appellant in this respect. The appellant prays that the AO be directed to delete the addition. The appellant craves leave to add, amend, alter, modify, delete or add a new ground of appeal before or at the time of hearing.” 4. Facts of the case, in brief, are that the assessee is a credit cooperative society engaged in the activity of providing credit facilities to its members and also accepting deposits from them and has furnished its return of income on 26.09.2018 by declaring income of Rs.Nil after claiming deduction u/s 80P of the IT Act. The case was selected for scrutiny and notices u/s 143(2) and 142(1) respectively were issued to the assessee. After considering the reply and submissions of the assessee, the Assessing Officer vide order dated 06.04.2021 by placing reliance on judgement of Hon’ble

3 ITA No.2643/PUN/2026 Supreme Court passed in the case of Totgars Cooperative Sales Society Ltd. vs. ITO [2010] 188 Taxman 282 (SC) completed the assessment proceedings u/s 143(3) r.w.s. 144B r.w.s. 143(3B) of the IT Act by determining the income of the assessee at Rs.23,25,751/- as against the income of Rs.Nil returned by the assessee. The above assessed income includes addition of Rs.23,25,751/- being disallowance u/s 80P of the IT Act. 5. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal. 6. It is the above order against which the assessee is in appeal before this Tribunal. 7. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that the issue of deduction u/s 80P(2)(a)(i) with regard to income attributable to business of providing credit facility & the issue of deduction u/s 80P(2)(d) with regard to interest income from other cooperative banks being cooperative society is no more res integra in the light of various

4 ITA No.2643/PUN/2026 decisions of coordinate benches of this Tribunal including the case of Chandraprabhu Gramin Bigarsheti Sahakari Pat Sanstha vs ITO ITA No No.1858/PUN/2024 order dated 29-10-2024 wherein the Tribunal allowed the deduction u/s 80P(2)(a(i) & 80P2(d) of the IT Act by observing as under :- “9. We have heard the Ld. Representative of the parties and perused the records. We find that the impugned issue is no more res-integra by virtue of catena of decisions passed by the Co-ordinate Benches of the Tribunal and the Hon’ble High Courts. Admittedly, the facts are not in dispute. During the relevant AY 2018-19 it is noticed that the assessee has earned interest income amounting to Rs.45,81,847/- from investments/deposits made in Co-operative Societies/Co-operative banks/Scheduled banks/ Nationalized banks which it claimed as deduction u/s 80P(2)(a)(i)/ 80P(2)(d) of the Act. The Ld. CIT(A)/NFAC has allowed the claim of the assessee with respect to the interest income from investments/deposits made in Co-operative Societies and Co-operative banks amounting to Rs.7,62,162/- and disallowed the assessee’s claim of deduction with respect to the interest income from investments/deposits made in other Scheduled / Nationalized banks. The Pune Bench of the Tribunal in the case of Sharad Nagari Sahakari Patsanstha Maryadit (supra) has decided the impugned issue in favour of the assessee under the similar set of facts by holding as under : “3. Even the latter limb of interest income of Rs.96,000/- derived from investments made in nationalized/other bank(s), the Revenue could hardly dispute that case law The Vaveru Cooperative Rural Bank Ltd., vs. CCIT [2017] 396 ITR 371 (AP) that interest income(s) derived from such nationalized/other bank(s) also qualifies for sec.80P deduction and thereby declined it’s very stand. Faced with this situation, I adopt the foregoing detailed discussion mutatis mutandis to accept the assessee’s sec.80P(2)(a)(i)/80P(2)(d) deduction claim(s) in very terms. Ordered accordingly.” 10. Identical issue was considered and decided in favour of the assessee by the Pune Bench of the Tribunal in the case of Yogiraj Nagari Sahakari Patsanstha Maryadit Vs. ITO in ITA No. 1152/PUN/2023, dated 06.06.2024 wherein the Tribunal in turn relying

5 ITA No.2643/PUN/2026 on the decision of the Co- ordinate Bench in the case of The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co- op Credit Society vs. ITO in ITA No.84/PAN/2018, dated 27.05.2022 held as under : “9. Following the decision of the Co-ordinate Bench of this Tribunal (supra), we are of the considered opinion that even the interest income earned by cooperative society on deposits made out of surplus funds with cooperative banks as well as schedule banks qualify for deduction both under the provisions of section 80P(2)(a)(i) and section 80P(2)(d) of the Act, therefore, the reasoning given by the lower authorities on this issue cannot be accepted. Thus, we direct the Assessing Officer to allow deduction u/s 80P(2)(a)(i) and 80P(2)(d) in respect of interest income earned from other cooperative banks. The grounds of appeal filed by the assessee stands allowed.” 11. Respectfully following the decision(s) (supra) of the Co-ordinate Bench of the Tribunal and in the absence of any material brought on record to enable us to take a different view, we set aside the order of the Ld. CIT(A)/NFAC on the issue and allow the appeal of assessee.” 8. Respectfully following the above decision passed in the case of Chandraprabhu Gramin Bigarsheti Sahakari Pat Sanstha vs ITO ITA No No.1858/PUN/2024 order dated 29-10-2024, we are of the considered opinion that the assessee credit cooperative society is entitled to claim deduction u/s 80P(2)(a)(i) of the IT Act with regard to interest income earned from its investments with other nationalised & cooperative banks. 9. Considering the totality of the facts of the case & in view of our above discussion, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and direct the Assessing Officer to

6 ITA No.2643/PUN/2026 allow deduction of Rs.23,25,751/- claimed by the assessee u/s 80P(2)(a)(i) of the IT Act with regard to interest income earned from its investments with other nationalized & co-operative banks. Accordingly, the grounds raised by the assessee credit co-operative society are allowed. 10. In the result, the appeal filed by the assessee is allowed. Order pronounced on this 12th day of October, 2026. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; �दनांक / Dated : 12th October, 2026. Sujeet/DOC Sujeet Kumar Digitally signed by Sujeet Kumar Sharma Sharma Date: 2026.10.13 10:15:18 आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : +05'30' अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The Pr. CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब�च, 4. पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 5. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.