SHRI SAIKRUPA NAGARI SAHAKARI PATSANSTHA MARYADIT KOLHAPUR,KOLHAPUR vs. CIRCLE 1, KOLHAPUR, KOLHAPUR

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ITA 65/PUN/2025Status: DisposedITAT Pune28 March 2025AY 2020-21Bench: SHRI MANISH BORAD (Accountant Member), SHRI S. S. VISWANETHRA RAVI (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since cooperative banks are essentially cooperative societies, the interest earned on deposits held with them is also eligible for deduction under section 80P(2)(d) of the Act. The Tribunal followed its own precedents and the assessee's own case from a previous assessment year.

What were the facts?

The assessee, a cooperative bank, earned interest on deposits held with other cooperative banks. The assessee claimed deduction under section 80P(2)(d) of the Income Tax Act for this interest income. The assessing officer disallowed the deduction.

What were the issues?

Whether interest earned by a cooperative bank on deposits held with other cooperative banks is eligible for deduction under Section 80P(2)(d) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

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

Before: SHRI MANISH BORAD & SHRI S. S. VISWANETHRA RAVI

For Appellant: Shri A. S. Naik (Virtual)
For Respondent: Shri Manoj Tripathi
Hearing: 19.03.2025Pronounced: 28.03.2025

Assessment Year : 2020-21 Shri Saikrupa Nagari Vs. ITO, NFAC. Sahakari Patsanstha Maryadit, 720, Office Shop No.4, Near Deshmukh Hall, Old Washi Naka, A Ward, Kolhapur- 416011. PAN : AAPAS5987G Appellant Respondent Assessee by : Shri A. S. Naik (Virtual) Revenue by : Shri Manoj Tripathi Date of hearing : 19.03.2025 Date of pronouncement : 28.03.2025 आदेश / ORDER

PER S. S. VISWANETHRA RAVI, JM:

1.

This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 02.12.2024 pertaining to assessment year 2020-21.

2.

At the outset, Ld. Counsel for the assessee submitted that the sole issue involved in the instant case is the allowability of deduction u/s 80P(2)(d) of the Act for the interest earned from cooperative banks. He stated that in assessee’s own case for assessment year 2018-19 similar issue has been decided in favour of the assessee vide dated 07.01.2025. He prayed that the appeal of the assessee be allowed in view of the settled judicial precedent consistently followed by this Tribunal.

3.

On the other hand, Ld. DR did not file any binding precedent in the interest of the Revenue.

4.

We have heard rival contentions and perused the records placed before us. The assessee has earned interest of Rs.29,53,030/- on deposits held with cooperative banks. The issue is no longer res integra and considering the consistent view taken by this Tribunal and also referring to the decision of this Tribunal in the case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd. vs. ITO in dated 01.01.2024 and in assessee’s own case for assessment year 2018-19 in ITA No.2378/PUN/2024 we hold that since the cooperative banks are basically cooperative societies, therefore, the interest earned on deposits earned from cooperative banks are also allowable as deduction u/s 80P(2)(d) of the Act. We accordingly reverse the finding of Ld. CIT(A)/NFAC and direct the Assessing Officer to 80P(2)(d) of the Act at Rs.29,53,030/-. Effective grounds of appeal

raised by the assessee are allowed.

5. In the result, the appeal of the assessee is allowed. Order pronounced on 28th day of March, 2025.

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