YASHWANTBHAU PATIL GRAMIN BIGARSHETI SAHAKARI PATSANSTHA LTD,SOLAPUR vs. INCOME-TAX OFFICER, WARD - 2, PANDHARPUR

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ITA 689/PUN/2018Status: DisposedITAT Pune17 January 2019AY 2014-153 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to claim the benefit under Section 80P of the Act on the interest income earned from nationalized banks. This decision followed previous orders of the Tribunal in the assessee's own case.

What were the facts?

The assessee, a Credit Co-operative Society, claimed deduction under Section 80P for interest earned on bank deposits with nationalized banks. The Assessing Officer and CIT(A) disallowed this claim, viewing it as not eligible for deduction.

What were the issues?

Whether interest income earned by a co-operative society on deposits with nationalized banks is eligible for deduction under Section 80P of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(3),Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

For Appellant: Shri S.N. Puranik
For Respondent: Shri Rajesh Gawali
Hearing: 02.01.2019Pronounced: 21.01.2019

आदेश / ORDER

PER SUSHMA CHOWLA, JM:

The appeal filed by assessee is against order of CIT(A)-7, Pune, dated 18.01.2018 relating to assessment year 2014-15 against order passed under section 143(3) of the Income-tax Act, 1961 (in short ‘the Act’).

2.

The assessee has raised the following grounds of appeal:- 1. CIT(A) has erred in not granting deduction u/s 80P for Interest on Bank deposits with nationalized banks, Appellant prays to allow the same.

ITA No.689/PUN/2018 2 Yashwantbhau Patil Gramin Bigersheti Sah. Patsanstha Ltd.

2.

CIT(A) has erred in not following the binding Order of Pune ITAT on the issue and rejecting appellant claim. 3. Appellant claim for just and equitable relief. 4. Appellant prays for awarding cost for CIT(A) not following Pune ITAT Decision. 5. Appellant prays for deletion of Interest u/s 234B

3.

The learned Authorized Representative for the assessee at the outset pointed out that the issue raised in the present appeal is squarely covered by the orders of Pune Bench of Tribunal in assessee’s own case.

4.

The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below.

5.

We have heard the rival contentions and perused the record. Briefly, in the facts of the case, the assessee was Credit Co-operative Society engaged in the activity of accepting deposits from members and giving advances to its members. The assessee filed return of income declaring total income at Nil on 29.11.2014. The case of assessee was selected for scrutiny under CASS and the Assessing Officer was of the view that the interest on the investments made by assessee with Nationalized banks amounting to ₹ 20,63,207/- was not eligible for deduction under section 80P of the Act. Accordingly, the same has been disallowed and added to the total income of the assessee. The CIT(A) upheld the order of Assessing Officer.

6.

On perusal of record, it transpires that the issue raised in the present appeal is squarely covered by the order of Tribunal in assessee’s own case in ITA No.705/PUN/2017, relating to assessment year 2012-13, order dated 18.05.2018, wherein the Tribunal has in turn, relied on various orders of Tribunal and held that the assessee is entitled to claim the benefit under

ITA No.689/PUN/2018 3 Yashwantbhau Patil Gramin Bigersheti Sah. Patsanstha Ltd.

section 80P of the Act on the interest income earned from nationalized banks. The relevant findings of Tribunal are vide paras 13 to 17 of the order, which are being referred to and are not being reproduced for the sake of brevity. The said decision has further been followed in assessee’s own case relating to assessment year 2013-14 in ITA No.2107/PUN/2017, order dated 13.11.2018. Following the same parity of reasoning, we hold that the assessee is entitled to claim the benefit under section 80P of the Act on the interest income earned on FDs from nationalized banks. Hence, the ground of appeal raised by the assessee is allowed.

7.

In the result, the appeal of assessee is allowed.

Order pronounced on this 21st day of January, 2019.

Sd/- Sd/- (ANIL CHATURVEDI) (SUSHMA CHOWLA) ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक Dated : 21st January, 2019. GCVSR आदेश की प्रयतलऱपप अग्रेपषत/Copy of the Order is forwarded to : अऩीऱाथी / The Appellant; 1. 2. प्रत्यथी / The Respondent; 3. आयकर आयुक्त(अऩीऱ) / The CIT(A)-7, Pune; 4. The Pr.CIT-6, Pune; ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩुणे, एक-सदस्य 5. मामऱा / DR ‘SMC’, ITAT, Pune; गार्ड पाईऱ / Guard file. 6. आदेशािुसार/ BY ORDER, सत्यावऩत प्रतत //True Copy// वररष्ठ तनजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण ,ऩुणे / ITAT, Pune

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