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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER PER R.S.SYAL, VP :
This appeal by the Revenue arises out of the order passed by the CIT(A)-1, Nashik on 04-11-2016 in relation to the assessment year 2013-14.
The only issue raised in this appeal is against not allowing deduction u/s.80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter
2 ITA No.155/PUN/2017 Swa Ashokrao Bankar Nagari Sahakari Patsanstha Maryadit
also called as ‘the Act’) on interest income of Rs.72,93,770/-
earned from banks other than cooperative banks.
Briefly stated, the facts of the case are that, the assessee is a
cooperative society engaged in providing credit facilities to its
members. Return was filed declaring NIL income after availing
deduction u/s.80P. The AO observed that the assessee earned
interest income of Rs.72,93,770/- from banks, which, in his
opinion was not eligible for deduction u/s.80P. He, therefore,
made disallowance of interest income to this extent which view
came to be affirmed in the first appeal.
We have heard both the sides and perused the relevant
material on record. The only issue in this appeal is whether
interest income earned from FDRs with the nationalized banks is
eligible for deduction u/s 80P of the Act? The Pune Bench of the
Tribunal in the case of Shri Laxmi Narayan Nagari Sahakari Pat
Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed
deduction u/s 80P of the Act in similar circumstances vide its order
dated 19-08-2015. In that case, the Pune Bench discussed the
contrary views expressed by the Hon’ble Karnataka High Court in
Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO
3 ITA No.155/PUN/2017 Swa Ashokrao Bankar Nagari Sahakari Patsanstha Maryadit
(2015) 230 taxmann 309 (Kar.) allowing the deduction u/s. 80P on
interest income and the Hon’ble Delhi High Court in Mantola
Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89
(Delhi) not allowing deduction u/s.80P on interest income earned
from banks under similar circumstances. Both the Hon’ble High
Courts have taken into consideration the ratio laid down in the case
of Totgar’s Cooperative Sale Society Ltd. 322 ITR 283 (SC).
There being no direct judgment from the Hon’ble jurisdictional
High Court on the point, the Tribunal in Shri Laxmi Narayan
Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go
with the view taken in favour of the assessee by the Hon’ble
Karnataka High Court in the case of Tumkur Merchants Souharda
Credit Cooperative Ltd. (supra). In the absence of there being no
change in the legal position prevailing on this issue after the
passing of the order by the Pune Bench of the Tribunal in Shri
Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra)
and a host of other orders reiterating the similar view, respectfully
following the precedent, we approve the impugned order in
allowing deduction u/s.80P on the interest income.
4 ITA No.155/PUN/2017 Swa Ashokrao Bankar Nagari Sahakari Patsanstha Maryadit
In the result, the appeal is dismissed.
Order pronounced in the Open Court on 23rd January, 2019.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 23rd January, 2019 सतीश आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. The CIT(A)-1, Nashik 4. The Pr.CIT-1, Nashik िवभागीय �ितिनिध, आयकर अपीलीय 5. अिधकरण, पुणे “बी” / DR ‘B’, ITAT, Pune; 6. गाड� फाईल / Guard file. // True copy // आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.155/PUN/2017 Swa Ashokrao Bankar Nagari Sahakari Patsanstha Maryadit
Date 1. Draft dictated on 22-01-2019 Sr.PS 2. Draft placed before author 22-01-2019 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *