SHRI VITTHAL NAGARI SAHAKARI PAT SANSTHA MARYADIT KOLHAPUR,KOLHAPUR vs. INCOME TAX OFFICE WARD 1(1), KOLHAPUR
आयकर अपीलीय अिधकरण ”एस एम सी” Ɋायपीठ पुणेमŐ।
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCHES “SMC” :: PUNE
BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER
आयकर अपील सं. / ITA No.2648/PUN/2024
िनधाᭅरण वषᭅ / Assessment Year: 2016-17
Shri Vitthal Nagari Sahakari
Pat Sanstha Maryadit
Kolhapur,
2362 C Ward, Near Shivgiri
Math, Sonya Maruti Chowk,
Shaniwar Peth,
Maharashtra – 416002. PAN: AAFAS2551N
V s
The Income Tax Officer,
Ward-1(1), Kolhapur.
Appellant/ Assessee
Respondent / Revenue
Assessee by Shri Vaibhav Ruikar – AR
Revenue by Shri Harshit Dilip Bari – Addl.CIT(DR)
Date of hearing
21/01/2025
Date of pronouncement 22/01/2025
आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], under section 250 of the Income tax Act, 1961 dated15.10.2024 for A.Y.2016-17. The Assessee has raised the following grounds of appeal :
2
“1. Whether on the facts and circumstance of the case and in law,
CIT(A) is correct in concluding that interest earned from Co- operative Bank of Rs.11,42,735/-is not eligible for deduction under section 80P(2)(a)(i) without appreciating the fact that these deposits are Part and parcel of business activity.
Without prejudice to the above, whether on fact and circumstance of the case and in law. CIT(A) is correct in not allowing interest earned from co-operative bank of Rs. 11,42,735/-as deduction under section 80P(2)(d) without appreciating the fact that these deposit or investments are with co-operative societies which includes co- operative banks.
Whether on fact and circumstance of the case and in law, the CIT(A) is correct in applying Totagarh's Co-operative Sale Society 4. Whether on fact and circumstance of the case and in law, the CIT(A) is correct in applying Mavilayi Service Coop. Bank Ltd. & Others as the in Mavilayi Service Coop. Bank case Mavilayi Service Coop. Bank was a Co-Operative bank unlike the Appellant is a Co- Operative Society,
Without prejudice to the above, whether on the fact and circumstances of the case and in law, CIT(A) is correct in not allowing proportionate expenditure against the interest earned on Deposit and taxed as other source.
Whether CIT (A) has given fair chance of hearing to the Appellant and concluded the Appeal Proceedings?
Further it is requested that: - a) The Assessee craves leave to amend, alter or delete any of the above grounds of appeal.
b) It is prayed that the above claims and allowances be allowed.
c) Personal hearing may be granted to us for explaining our case.”
Submission of ld.AR:
Ld.Authorised Representative for the Assessee filed an elaborate paper book which contains synopsis and case laws relied. 3 Ld.AR explained that Assessee has earned interest income from Shri Panchganga Nagari Sahakari Bank Limited. Ld.AR further explained that the AO disallowed assessee’s claim of deduction under section 80P(2)(a) on the ground that the impugned interest is not earned from activity of providing credit facility to its members. Ld.AR further submitted that the AO has erred as the interest income has been earned from the main activity of assessee of providing credit facility to its members. As per Provisions of Maharashtra State Co-operative Societies Act, Assessee has to maintain the fixed deposits with Regional Sahakari Banks. Ld.AR further relied on following case laws : o ITAT Pune Decision in Jankalyan Multistate co-operative Credit Society Limited.
o ITAT Pune Decision in Sant Motiram Maharaj Sahakari Pat
Sanstha Ltd., o ITAT Pune Decision in Nashik Road Nagari SahkariPatsanstha
Limited.
Submission of ld.DR:
The ld.DR for the Revenue relied on the order of Assessing Officer(AO) and ld.CIT(A). 4 Findings & Analysis :
We have heard both the parties and perused the records. As per the assessment order, Assessee is Co-operative Credit Society registered under Maharashtra Co-operative Societies Act. Ld.AR filed copy of the Registration Certificate dated 19.04.2001 issued by Deputy