SHRI GANESH URBAN COOPERATIVE CREDIT SOCIETY LIMITED,SAMBHAJINAGAR vs. ITO WARD 1(1), AURANGABAD

This appeal at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 13.12.2024 which is arising out the order u/s. 143(3) of the Act for Assessment Year 2016-17 framed by ITO, Ward-1(4), Aurangabad.

The sole grievance of the assessee is that the Ld. CIT(A) erred in denying the deduction u/s. 80P(2)(d)/80P(2)(a)(i) of the Act for the of Rs.48,01,504/- earned from investment made with Co-operative Banks.

At the outset, the Ld. Counsel for the assessee submitted that the case of the assessee is squarely covered by the decision of the Co-ordinate Bench of the Tribunal in the case of Shri Ganesh Urban Cooperative Credit Society Limited Vs. ITO in for AY 2017-18 vide order dated 21.06.2024 and held that the interest earned from the Co-operative Bank is eligible for deduction u/s. 80P(2)(d) of the Act.

On the other hand, the Ld. Departmental Representative failed to controvert the contentions made by the Ld. AR by placing any other binding precedents.

We have heard the rival contentions and perused the record placed before us. The assessee has been denied the benefit of deduction u/s. 80P(2)(d) of the Act for the interest income of Rs.48,01,504/- earned from investment with Co- operative Banks. The facts remain undisputed that the alleged sum is the interest income from deposits with Co-operative banks which are basically Co-operative Societies. The decision of the Co-ordinate Bench of the Tribunal in the case of Shri Ganesh Urban Cooperative Credit Society Limited (supra), it has been held that the interest earned from Co-operative Bank is eligible for deduction u/s 80P(2)(d) of the Act. Similar view has also been taken consistently by this Tribunal in plethora of the decisions including that of Samarth Nagari Sahkari Pat Sanstha Maryadit Vs. ITO in for AY 2020-21 vide order dated 03.05.2024. Respectfully, following the same and taking consistent view, we are inclined to hold in favour of the assessee and direct the Ld. Assessing Officer to allow the claim of deduction u/s. 80P(2)(d) of the Act for the alleged sum of interest income of Rs.48,01,504/- earned from investments with Co-operative Banks. The finding of Ld. CIT(A) is reversed and the ground No. 1 raised by the assessee is allowed.

Ground No. 2 raised by the assessee being consequential in nature, needs no adjudication.

Ground No. 3 raised by the assessee is general in nature, hence, requires no adjudication.

In the result, the appeal of the assessee is allowed.