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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R.S. SYAL & SHRI PARTHA SARATHI CHAUDHURY
PER R.S. SYAL:
These four appeals by different assessees relating to the
assessment years 2017-18, 2018-19 & 2019-20 have been filed
2 Saska Nagari Sahakari Patsanstha Maryadit and others
against the denial of deduction u/s.80P by the ld. CIT(A). Since all
these appeals are based on similar facts and common grounds of
appeal, we are, therefore, proceeding to dispose them off by this
consolidated order for the sake of convenience.
There is a delay of 08 days in ITA No.370/PUN/2022. At the
outset, the ld. Counsel submitted that the delay pertains to Covid-19
pandemic period. We are satisfied with the reason of the delay.
Therefore, the said delay is condoned and the appeal is admitted for
disposal on merits by virtue of the judgment of the Hon’ble
Supreme Court in Cognizance for Extension of Limitation, In re
438 ITR 296 (SC) read with judgment in Cognizance for Extension
of Limitation, In re 432 ITR 206 (SC) dated 08-03-2021 and 421
ITR 314.
For the appeal at Sl.No.1, the assessee has filed written
submissions and requested to decide the appeal based on the same.
For the appeals at Sl.No.2 and 3, there is no appearance from the
side of the assessees despite notice. We are, therefore, proceeding
to dispose those appeals ex parte qua the assessees after hearing the
ld. DR.
Succinctly, the assessees in these appeals filed returns
claiming deduction u/s.80P of the Act in relation to interest income
earned from cooperative banks/nationalized banks. The Assessing
3 Saska Nagari Sahakari Patsanstha Maryadit and others
Officers denied the benefit of deduction u/s.80P, which came to be
countenanced in the first appeal.
We have heard the ld. DR and Sh. Pramod S. Shingte in
respect of ITA No.370/PUN/2022 and gone through the relevant
material on records. Insofar as the allowability of deduction
u/s.8P(2)(a)(i) is concerned, we find that the Pune Tribunal in
Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The
Pr.CIT (ITA No.713/PUN/2016) has decided the question of
availability of deduction u/s 80P on interest income by noticing that
the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari
Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has
allowed similar deduction. In the said case, the Tribunal discussed
the contrary views expressed by the Hon’ble Karnataka High Court
in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO
(2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on
interest income and that of the Hon’ble Delhi High Court in
Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110
DTR 89 (Delhi) not allowing deduction u/s.80P on interest income
earned from banks. Both the Hon’ble High Courts took into
consideration the ratio laid down in the case of Totgar’s
Cooperative Sale Society Ltd. (supra). No direct judgment from
the Hon’ble jurisdictional High Court on the point having been
4 Saska Nagari Sahakari Patsanstha Maryadit and others
pointed out, the Tribunal in Shri Laxmi Narayan Nagari Sahakari
Pat Sanstha Maryadit (supra) preferred to go with the view in
favour of the assessee by the Hon’ble Karnataka High Court in the
case of Tumkur Merchants Souharda Credit Cooperative Ltd.
(supra). The position continues to remain the same before this
Tribunal also. Respectfully following the precedent, we entitle the
assesses to the deduction.
Coming to the cases of deduction u/s.80P(2)(d), it is observed
that though co-operative banks, other than primary agricultural
credit society or a primary co-operative agricultural and rural
development bank, are not eligible for deduction pursuant to
insertion of section 80P(4) w.e.f. 1.4.2007, but this provision does
not dent the otherwise eligibility u/s 80P(2)(d) of the Act of a co-
operative society on interest income on investments/deposits
parked with a co-operative bank, which is a registered co-operative
society as per section 2(19) of the Act, defining co-operative society
to mean a co-operative society registered under the Co-operative
Societies Act, 1912 or under any law for the time being in force.
The assessees are also Co-operative societies registered under the
Act. We, ergo, hold that the assessees in question are entitled to the
benefit of deduction u/s 80P(2)(d) of the Act. Similar view has been
taken by the Pune Benches of the Tribunal in several cases
5 Saska Nagari Sahakari Patsanstha Maryadit and others
including The Sesa Goa Employees Coop. Credit Society Ltd. Vs.
ACIT (ITA No.203/PUN/2019, order dated 16-11-2022).
We, thus, overturn the impugned orders and order to grant
deduction u/s 80P of the Act in all such cases.
In the result, all the appeals are allowed.
Order pronounced in the Open Court on 21st December, 2022.
Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 21st December, 2022 Satish
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order is forwarded to: 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. The CIT(A) concerned 4. The CIT concerned िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A” / 5. DR ‘A’, ITAT, Pune गाड� फाईल / Guard file 6.
आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
6 Saska Nagari Sahakari Patsanstha Maryadit and others
Date 1. Draft dictated on 20-12-2022 Sr.PS 2. Draft placed before author 21-12-2022 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *