RATNADEEP SAHAKARI NAGARI PATPEDHI MARYADIT,SHAHADA vs. INCOME TAX OFFICER DHULE, DHULE

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ITA 388/PUN/2022Status: DisposedITAT Pune01 September 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 assessee is entitled to deduction under Section 80P on interest income earned from deposits with nationalized banks, following the view of the Karnataka High Court.

What were the facts?

The assessee, a cooperative society, claimed deduction under Section 80P on interest income earned from deposits with nationalized banks. The Assessing Officer denied this deduction, and the National Faceless Appeal Centre upheld the denial.

What were the issues?

Whether interest income earned by a cooperative society from deposits with nationalized banks is eligible for deduction under Section 80P of the Income-tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

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

Before: SHRI R.S. SYAL

For Respondent: Shri Ramnath P. Murkunde

आदेश / ORDER

PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) on 26-03-2022 in relation to the assessment year 2017-18. 2. The assessee is aggrieved by the denial of deduction u/s.80P in respect of interest of Rs.9,46,230/- earned from deposits kept with nationalised banks. 3. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of

1.

Ratnadeep Sahakari Nagari Patpedhi Maryadit assessee. However, this issue is no more res integra by virtue of series of orders passed by the Pune Tribunal. The Pune Benches of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) 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 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 Ratnadeep Sahakari Nagari Patpedhi Maryadit the Hon’ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). I, therefore, overturn the impugned order on this score and allow the deduction.

4.

In the result, the appeal is allowed. Order pronounced in the Open Court on 01st September, 2022.

(R.S.SYAL) उपा�य�/ VICE PRESIDENT पुणे Pune; �दनांक Dated : 01st September, 2022 Satish

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