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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R.S. SYAL & SHRI VIKAS AWASTHY
आदेश / ORDER PER R.S.SYAL, VP :
This appeal by the Revenue is directed against the order passed by the CIT(A)-2, Nashik on 20-01-2016 in relation to the Assessment Year 2012-13.
The only grievance projected by the Revenue in its appeal is against the allowing of deduction u/s.80P of the Income-tax Act, 1961 (hereinafter also called as ‘the Act’) in
2 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha
respect of interest earned by the assessee society from State
Bank of India, which was denied by the Assessing Officer
(AO).
Briefly stated, the facts of the case, are that the assessee
is a co-operative society engaged in the business of providing
credit facilities to its members. During the course of
assessment proceedings, the AO observed that the assessee
earned interest income of Rs. 71,48,551/- from State Bank of
India, Jamner branch on which deduction was claimed u/s 80P
of the Act. He negatived the assessee’s claim on such interest
income. The ld. CIT(A), following certain orders passed by
the Pune bench of the Tribunal including Shivneri Nagari
Sahakari Patsanstha Ltd., Kolkapur Vs. ITO (ITA No.
2223/PN/2013) dated 31-10-2014, allowed the assessee’s
claim, against which the Revenue has come up in appeal
before the Tribunal.
We have heard both the sides and perused the relevant
material on record. It is observed that the ld. CIT(A) allowed
the claim of deduction u/s.80P by following the order passed
by the Tribunal in the case of Shivneri Nagari Sahakari
3 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha
Patsanstha Ltd. (supra). The ld. AR placed on record a copy
of the another order of the Pune Bench dated 19-08-2015 in
the case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha
Maryadit Vs. ITO (ITA No.604/PN/2014) (to which one of us,
namely, the ld. JM is party) in which similar deduction has
been allowed. The Pune Bench of the Tribunal in the case of
Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit
(supra) has discussed the contrary views expressed by the
Hon’ble Karnataka High Court in Tumkur Merchants
Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230
taxmann 309 (Kar.) allowing the deduction u/s. 80P on interest
income and 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 under similar circumstances. Both
the Hon’ble High Courts have taken into consideration the
ratio laid down in the case of Totgar’s Cooperative Sale
Society Ltd. 322 ITR 283 (SC). There being no direct
judgment from the Hon’ble jurisdictional High Court on the
point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari
Pat Sanstha Maryadit (supra) preferred to go with the view
4 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha
taken in favour of the assessee by the Hon’ble Karnataka High
Court in the case of Tumkur Merchants Souharda Credit
Cooperative Ltd. (supra). In the absence of their being any
change in the legal position prevailing on this issue after the
passing of the order by the Pune Bench of the Tribunal in Shri
Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit
(supra) and host of other orders reiterating the similar view,
respectfully following the precedent, we uphold the impugned
order in allowing deduction u/s.80P on the interest income.
In the result, the appeal is dismissed
Order pronounced in the Open Court on 28th November, 2018.
Sd/- Sd/- (VIKAS AWASTHY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT
पुणे Pune; �दनांक Dated : 28th November, 2018 सतीश
5 ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha
आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिष �ितिलिप अ�ेिष अ�ेिषत/Copy of the Order is forwarded to: अ�ेिष आदेश आदेश आदेश 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. आयकर आयु�(अपील) / The CIT (Appeals)-2, Nashik 4. आयकर आयु� / The Pr.CIT-2, Nashik 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “ए” / DR ‘A’, ITAT, Pune; 6. गाड� फाईल / Guard file. // True copy //
आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.589/PUN/2016 Sureshdada Jain Nagri Sahakari Patsanstha
Date 1. Draft dictated on 27-11-18 Sr.PS 2. Draft placed before author 27-11-18 3. Draft proposed & placed before the second member 4. Draft discussed/approved by Second Member. 5. Approved Draft comes to the Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order.
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