BHIMA SAHAKARI SAKHAR KARKAHANA SEVAK SAHAKARI PATSANSTHA TAKALI,SOLAPUR vs. INCOME-TAX OFFICER, WARD -2, PANDHARPUR

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ITA 828/PUN/2022Status: DisposedITAT Pune09 December 2022AY 2017-184 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the deduction claimed under Section 80P(2)(a)(i) for interest income was allowable. It followed a previous Pune Tribunal decision which distinguished the applicability of Section 80P(2)(a)(i) from Section 80P(2)(d) in similar cases.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P(2)(a)(i) for interest income earned from investments in other co-operative societies and nationalized banks. The Assessing Officer and CIT(A) denied this deduction, considering Section 80P(2)(d).

What were the issues?

The primary issue was whether interest income earned by a co-operative society from investments in other co-operative societies and banks is eligible for deduction under Section 80P(2)(a)(i) or if it falls under Section 80P(2)(d) where such deduction might be denied.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80P(2)(d)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

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

Before: SHRI R.S. SYAL

For Appellant: Shri Pramod Shingte
For Respondent: Shri Kalpesh Kumar Rupavatiya

Assessee by Shri Pramod Shingte Revenue by Shri Kalpesh Kumar Rupavatiya Date of hearing 09-12-2022 Date of pronouncement 09-12-2022 आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by National Faceless Appeal Centre (NFAC), Delhi on 26.10.2022 in relation to assessment year 2017-18.

2.

The only issue raised in this appeal is against denial of deduction u/s 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) in respect of interest income received from investments/FDRs in other Co-operative societies and nationalized banks.

2 Bhima Sahakari Sakhar Karkhana Sevak Sahakari Patsanstha

3.

Briefly stated, the facts of the case are that the assessee is a Co-operative society, who filed return of income declaring total income at Rs.55,050 after claiming deduction u/s 80P amounting to Rs.33,41,655. The Assessing Officer (AO) denied the deduction, inter-alia, on interest income of Rs.22,30,655 by considering the provisions of section 80P(2)(d) of the Act. The ld. CIT(A) affirmed the action of the AO. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

4.

I have heard both the sides and gone through the relevant material on record. The only issue pressed in this appeal is against the denial of deduction u/s 80P(2) in respect of interest income. The claim of the assessee is that the deduction was claimed u/s 80P(2)(a)(i) and the same ought to have been allowed. I find that similar issue has been considered by the Pune Tribunal in Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO (2020) 120 taxmann.com 10 (Pune-Trib). Para 10 is relevant for the purpose, which reads as under: “10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society

(2017) 395 ITR 611 (Kar.) is concerned, we find that the 3 Bhima Sahakari Sakhar Karkhana Sevak Sahakari Patsanstha

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