THE INCOME-TAX OFFICER-26(2)(1), MUMBAI. vs. RAMARAJA KSHATRIYA CO-OP CREDIT SOCIETY LTD, MUMBAI

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ITA 1146/MUM/2022Status: DisposedITAT Mumbai11 August 2022AY 2017-20183 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the exclusion provisions of Section 80P(4) were not applicable to the assessee as it was not a cooperative bank. Therefore, the deduction claimed under Section 80P(2)(d) was justified.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing deduction under Section 80P(2)(d) to a cooperative credit society. The society earned interest income on deposits kept with cooperative banks.

What were the issues?

Whether a cooperative credit society, not registered as a cooperative bank, is eligible for deduction under Section 80P(2)(d) on interest income earned from deposits with cooperative banks, despite Section 80P(4).

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(2)(d),Section 80P(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘E‘ BENCH

Before: SHRI VIKAS AWASTHY & SHRI M.BALAGANESH

For Appellant: Shri Anil M Tupiwala
For Respondent: Ms. Agnes Thomas
Hearing: 02/08/2022Pronounced: 11/08/2022

आदेश / O R D E R PER M. BALAGANESH (A.M):

1.

This appeal in for A.Y.2017-18 arises out of the order by the ld. Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (NFAC) in appeal No.CIT(A), Mumbai- 38/10142/2019-20 dated 14/03/2022 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 09/09/2019 by the ld. Income Tax Officer Ward 26(2)(5), Mumbai (hereinafter referred to as ld. AO).

2.

At the outset there is a delay in filing of appeal by the Revenue by five days. We find that the Revenue has duly explained the delay and accordingly, the same is hereby condoned and appeal of the Revenue is admitted for adjudication.

3.

The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in allowing deduction u/s.80P(2)(d) in respect of interest income earned on deposits from Co-operative bank in the facts and circumstances of the instant case.

4. We have heard rival submissions and perused the materials available on record. The assessee is a co-operative society and carrying on the business of banking for providing credit facilities to its members. It is not in dispute that the income earned by the assessee is eligible for deduction u/s. 80P of the Act. The Co-operative society is registered under the Maharashtra State Co-operative Societies Act, 1960 as credit resource society to carry out the activity of providing credit facilities to its members. The assessee is not registered under Banking Regulation Act, 1949 with Reserve Bank of India. Hence, the assessee is not a co- operative bank, accordingly, the exclusion provisions contained in Section 80P(4) of the Act shall not be applicable to assessee at all.

4.1. It is not in dispute that assessee had earned interest income from deposits kept with co-operative banks. The assessee claimed deduction for the same u/s. 80P(2)(d) of the Act. The ld. AO by applying the provisions of Section 80P(4) of the Act denied deduction to the assessee. On first appeal, the ld. CIT(A) had deleted the disallowance by placing reliance in the order of this Tribunal in assessee’s own case for A.Yrs. 2014-15 and 2015-16 in and 4897/Mum/2019 respectively dated 11/03/2021. We have perused the orders of this Tribunal dated 11/03/2021 which has been relied upon by the ld. CIT(A) and find that the issue in dispute is squarely covered in favour of the assessee. For the sake of brevity, the operative portion of the said judgement is not reproduced herein. Hence, we do not find any infirmity in the order of the ld. CIT(A) granting relief to the assessee. Accordingly, the ground raised by the Revenue is dismissed.

4.

In the result, appeal of the Revenue is dismissed.

Order pronounced on 11/08/2022 by way of proper mentioning in the notice board.

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