SHARADCHANDRA NAGARI SAHAKARI PATSANSTHA MARYADIT,PUNE vs. ITO, WARD 10(1), PUNE, PUNE

IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “B”, PUNE

BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER

आयकर अपील सं. / ITA No.1041/PUN/2025
Assessment Year : 2015-16

Sharadchandra Nagari
Sahakari Patsanstha Maryadit,
At Post Rajuri, Taluka Junnar,
Dist. Pune – 412 411
Maharashtra
PAN : AAABS1016L
Vs. ITO, Ward-10(1),
Pune
Appellant

Respondent

आदेश / ORDER

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated 28.03.2025 of National Faceless Appeal Centre, Delhi arising out of Assessment
Order dated 29.12.2017 passed u/s.143(3) of the Income Tax
Act, 1961 ( in short ‘the Act’).
2. The only grievance of the assessee is that ld.CIT(A) erred in not granting benefit u/s.80P(2)(d) of the Act for the interest earned from Cooperative Banks.
3. At the outset, Ld. Counsel for the assessee referring to the decision of this Tribunal in assessee’s own case for A.Y. 2020-21
in ITA No.1391/PUN/2024 order dated 24.03.2025 stated that the issue remains the same and that during the assessee under Appellant by :
Shri Abhay Avchat
Respondent by :
Shri Akhilesh Srivastva
Date of hearing
:
04.06.2025
Date of pronouncement
:
05.06.2025
Sharadchandra Nagari
Sahakari Patsanstha Maryadit

2
consideration assessee has made investment with Cooperative
Banks and has earned interest of Rs.1,48,18,262/- and therefore net profit for the year at Rs.72,30,149/- deserves to be allowed as deduction u/s.80P(2)(d) of the Act.

Ld.
Departmental
Representative did not oppose this request.
4. We have heard the rival contentions and perused the record placed before us. We notice that the assessee is a Cooperative
Society and has earned interest of Rs.1,48,18,262/- from the investments made with Cooperative Banks. Assessee has claimed deduction u/s.80P at Rs.72,30,149/- which is less than the interest income from Cooperative Banks. This Tribunal is taking consistent view that interest income received from Cooperative
Banks is also eligible for deduction u/s.80P(2)(d) of the Act as the Cooperative Banks are basically Cooperative Societies. This issue has come up in assessee’s own case for A.Y. 2020-21 before this Tribunal wherein the Tribunal held in favour of the assessee.
Finding of this Tribunal in Para No.7 reads as under :

“7. We have heard rival contentions and perused the records placed before us. We observe that the assessee which is a co-operative society has declared income of Rs.3,92,570/- after claiming deduction u/s 80P at Rs.1,33,50,608/-. We also observe that during the year the assessee society has earned interest income of Rs.18,96,95,893/- and has made interest payments of Rs.13,78,57,308/-. Further, the net total income of Rs.1,37,43,180/- has been assessed after considering the interest income earned from surplus funds deposited with cooperative banks at Rs.4,15,27,813/-. We observe that since the cooperative banks are basically cooperative societies, therefore, the interest earned from cooperative banks are clearly eligible for deduction u/s 80P(2)(d) of the Act and this view has been consistently followed by the Co-ordinate
Bench of Tribunal in plethora of decisions including that of Samarth
Nagari Shakari Path Sanstha Maryadit (supra) and The Ugar Sugar
Works Kamgar & Dr. Shirgaokar Shaikshanik Trust Nokar Co-op Credit
Society vs. ITO in ITA No.84/PAN/2018 order dated 27.05.2022. Therefore, in view of the above, the interest income from cooperative banks at Rs.4,15,27,813/- is eligible for deduction u/s 80P(2)(d) of the Act. However, deposit with MSEDCL at Rs.1,09,529/-, Ld. Counsel for the assessee failed to furnish any judicial precedent, therefore,
Sharadchandra Nagari
Sahakari Patsanstha Maryadit

3
disallowance to the extent of Rs.1,09,529/- is hereby confirmed. In view of the above, against the total disallowance u/s 80P of the Act at Rs.1,33,50,608/-, we allow the deduction u/s 80P of the Act to the extent of Rs.1,32,41,080/- and confirm the disallowance of Rs.1,09,529/-. Effecting grounds of appeal raised by the assessee are partly allowed.”

Order pronounced on this 05th day of June, 2025. (VINAY BHAMORE)
ACCOUNTANT MEMBER

पुणे / Pune;
दनांक / Dated : 05th June, 2025. Satish

आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to :
1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The Pr. CIT concerned.
4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” बच,
पुणे / DR, ITAT, “B” Bench, Pune.

//// Senior Private Secretary

आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.