SUGAR CANE PRODUCERS VIVIDHA KARYAKARI SAH. SOCIETY LTD,SOLAPUR vs. INCOME-TAX OFFICER, WARD - 1(4), PANDHARPUR

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ITA 3101/PUN/2017Status: DisposedITAT Pune13 November 2018AY 2014-154 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, following its own previous orders for the preceding assessment years and the Supreme Court judgment in Totgar's Cooperative Sale Society Ltd., held that the assessee is entitled to deduction under Section 80P on the interest income earned from investments.

What were the facts?

The assessee, a sugar cane producers' cooperative society, earned interest income from nationalised and private sector banks. The Assessing Officer denied deduction under Section 80P on this interest income, which was upheld by the CIT(A).

What were the issues?

Whether interest income earned by a cooperative society from its investments in banks is eligible for deduction under Section 80P of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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

Before: SHRI R.S. SYAL

For Appellant: Shri S.N. Doshi & Shri Rya Shah
For Respondent: Shri Rajesh Gawli

आदेश / ORDER PER R.S.SYAL, VP :

This appeal by the assessee is arising out of the order passed by the CIT(A)-7, Pune, dated 06-10-2017 in relation to the A.Y. 2014-15.

2.

The only issue raised in this appeal is against the denial of deduction u/s.80P of the Income-tax Act, 1961 (hereinafter

2 ITA No.3101/PUN/2017 Sugar Cane Producers Vividha Karyakari Sah. Society Ltd.,

also called `the Act’) in respect of interest earned from

Nationalised and Private Sector banks.

3.

I have heard both the sides and perused the relevant

material on record. Shorn of unnecessary details, it is

observed that the assessee earned interest income amounting

to Rs.13,80,643/- on certain investments/FDRs and claimed

deduction u/s.80P of the Act on interest income as well. The

AO denied the deduction on interest income, which view came

to be upheld in the first appeal. It is observed that similar

issue was raised in the assessee’s appeal for the immediately

preceding assessment years 2012-13 and 2013-14. Vide its

order dated 26-10-2018, the Tribunal in ITA Nos.2537 &

2538/PUN/2017 has allowed deduction on interest income

earned from investments in Fixed Deposits. A copy of such

order has been placed on record. The tribunal has passed the

order after considering the judgment of Hon’ble Supreme

Court in the case of Totgar’s Cooperative Sale Society Ltd.

VS. ITO 322 ITR 283 (SC). The ld. Departmental

Representative fairly admitted that the facts and circumstances

of the instant appeal are mutatis mutandis similar to those of

3 ITA No.3101/PUN/2017 Sugar Cane Producers Vividha Karyakari Sah. Society Ltd.,

preceding years. Respectfully following the view taken by the Tribunal in assessee’s own case for the immediately preceding assessment years, I overturn the impugned order on this score and order to grant deduction u/s.80P on such interest income.

4.

In the result, the appeal is allowed.

Order pronounced in the Open Court on 13th November, 2018. Sd/- (R.S.SYAL) उपा�य�/ VICE PRESIDENT उपा�य� उपा�य� उपा�य� पुणे Pune; �दनांक Dated : 13th November, 2018 सतीश आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: अ�ेिषत आदेश आदेश आदेश 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. आयकर आयु�(अपील) / The CIT (Appeals)-7, Pune 4. आयकर आयु� / The Pr. CIT-6, Pune 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / DR ‘SMC’, 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.3101/PUN/2017 Sugar Cane Producers Vividha Karyakari Sah. Society Ltd.,

Date 1. Draft dictated on 12-11-18 2. Draft placed before author 12-11-18 3. Draft proposed & placed before the - second member 4. Draft discussed/approved by Second - Member. 5. Approved Draft comes to the Sr.PS/PS 12-11-18 6. Kept for pronouncement on 13-11-18 7. File sent to the Bench Clerk 13-11-18 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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