SHRI BALAJI KHAJGI TEACHER CO OP CREDIT SOCIETY LIMITED,JALNA vs. ITO WARD 1 JALNA, JALNA
आयकर अपीलीय अधिकरण "एस एम सी" न्यायपीठ पुणे में ।
IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, PUNE
BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER
आयकर अपील सं. / ITA No.287/PUN/2025
धििाारण वषा / Assessment Year: 2018-2019
Shri Balaji Khajgi Teacher
Co-operative Credit
Society Limited,
Behind Panchayat Samiti,
Bhokardan,
Dist-Jalna-431114
Maharashtra
PAN-AABAS9758D
Vs ITO, Ward-1,
Jalna
Appellant
Respondent
Assessee by : Shri Girish Ladda
Revenue by : Shri Aviyogi Ambadkar,
Additional CIT
Date of hearing
: 13.03.2025
Date of pronouncement
: 25.03.2025
आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of the assessee is directed against the order of Ld. CIT Appeal (NFAC) u/s 250 of the Income-tax Act, 1961 dated 30.09.2024 for the A.Y. 2018-19 which is arising out of Order passed u/s.143(3) of the Act dated 23.02.2021. 2. Assessee has raised following grounds of appeal:- 1) On the facts of the case and in law, the CIT(A) has erred in confirming the disallowance of deduction u/s 80P (2) Rs 6,83,700 in respect of interest received from banks on Fixed Deposits. The addition may please be deleted as the issue is covered in favor of the assessee by various judgements of Hon PUNE ITAT. 2) The Id. AO and CIT(A) erred in not the following the binding decisions of Juri ictional PUNE ITAT holding that cooperative societies are eligible for deduction u/s 80P(2)(a)(i) in respect of interest received from all banks including nationalized or scheduled banks. Hence, it is prayed that addition of Rs 6,83,700 may please be deleted. 3) The Appellant prays for just and equitable relief. 4) The Appellant seeks leave to add, alter, amend or drop any of the grounds taken above.
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3. Sole grievance of the assessee is that it is eligible for deduction u/s 80P(2) of the Act at Rs. 6,83,700/- in respect of interest received from Bank on fixed deposits. Reference was also made to the Paper Book containing 20 pages and also including decision of this Tribunal in ITA 1148/PUN/2018, dated 04.11.2022. On the other hand Ld. DR supported the order of both the lower authorities.
I have heard rival contentions and perused the record placed before us. The assessee is a co-operative credit society and the return of income filed for the A.Y. 2018-2019 on 15.10.2018 declaring income of Rs. 1,52,130/- was selected for scrutiny and the deduction claim u/s 80P was restricted to the extent of Rs. 6,83,700/- on account of the interest of Rs. 4,00,753/- earned from deposits with SBI Branch Bhokardan and interest of Rs. 2,82,947/- received from the Jalna Trust Co- operative Bank.
(a) So far as the interest income earned from deposits from Co-operative Banks we find that the issue stands squarely covered in favour of the assessee by various decisions of this Tribunal. We would like to refer to the decision of this Tribunal in case of the Ugar Sugar works Kamgar and Dr. Shirgaokar Shaikshanik Trust Nokar Co-operative Credit Society/ITA 84/PUN/2018, dated 27.05.2022 where it has been held that since co-operative Banks are basically co-operative societies, the interest earned from such co-operative banks is also eligible for deduction u/s 80P(2)(d) of the Act. Respectively following the same I hold that the assessee is to be granted deduction u/s 80P(2)(d) of the Act for interest earned from Co-operative Banks at Rs. 2,82,947/-
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5.(b) So far remaining amount of deduction u/s 80P of the Act at Rs. 4,00,753/- for Interest earned from Nationalized Banks
SBI it has been claimed by the assessee that the assessee has to maintain the deposits with Nationalized Banks in terms of the rules and regulations of the societies Act and also to maintain the liquidity ratio. As the necessary details placed before me were not placed before the lower authorities, I restore this issue to the file of Ld. JAO for the limited purpose of examining the claim of the assessee as discussed above and if Ld. JAO is satisfied that deposits held with SBI are for the purpose of maintaining the liquidity ratio and to follow the guidelines maintained in the society registration Act applicable to the assessee and to carry out the activity, then Ld. JAO decide in accordance with law. Accordingly grounds of assessee are partially allowed for statistical purposes as per terms indicated above.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Order pronounced on this 25th day of March, 2025. (MANISH BORAD)
ACCOUNTANT MEMBER
पुणे/ Pune; दििांक / Dated: 25th March, 2025. Neeta
आिेश की प्रधिधलधप अग्रेधषि / Copy of the Order forwarded to:
1. अपीलार्थी / The Appellant.
2. प्रत्यर्थी / The Respondent.
3. The Pr. CIT concerned.
4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, "SMC" बेंच,
पुणे / DR, ITAT, "SMC" Bench, Pune.
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5. गार्ा फाइल / Guard File.
आिेशािुसार / BY ORDER,
//// Senior Private Secretary
आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune.