INCOME-TAX OFFICER vs. SURESHDADA JAIN NAGRI SAHAKARI PATSANSTHA, JALGAON

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.

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).

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.

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.

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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