INCOME-TAX OFFICER vs. TATA MOTORS KARAMCHARI SAHAKARI PATPEDHI LTD, PUNE

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ITA 2596/PUN/2016Status: DisposedITAT Pune02 November 2018AY 2012-133 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, following the precedent set in the assessee's own case for a preceding year, which had also considered the ratio in Totgar's Co-operative Society. No distinguishing features for the current year were presented by the Revenue.

What were the facts?

The assessee, a co-operative society providing credit facilities to its members, claimed deduction under Section 80P on interest income earned from fixed deposits. The Assessing Officer denied this deduction, but the CIT(A) allowed it, relying on a previous Tribunal order in the assessee's own case.

What were the issues?

Whether interest income earned by a co-operative society from its deposits with a bank is eligible for deduction under Section 80P, especially in light of Supreme Court judgments.

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 “B”, PUNE

Before: SHRI R.S. SYAL & SHRI VIKAS AWASTHY, JM

For Appellant: Shri K. Srinivasan
For Respondent: Shri Sudendhu Das
Hearing: 01.11.2018Pronounced: 02.11.2018

आदेश / ORDER आदेश आदेश आदेश

PER R.S.SYAL, VP :

This appeal by the Revenue is directed against the order passed by the CIT(A)-6, Pune, dated 26-08-2016 in relation to the assessment year 2012-13.

2.

The only issue in this appeal is against granting deduction u/s. 80P(2)(A)(i) of the Income-tax Act, 1961 (hereinafter also called as ‘the Act’) despite the judgment of the Hon’ble Supreme Court in Totgar’s Co-operative Society vs. ITO 322 ITR 283.

3.

Briefly stated, the facts of the case are that the assessee is a Co-operative Society registered under Maharashtra Co-operative Societies Act, 1960. It is engaged in providing credit facilities to its members and the main activity of the society is to disburse and recover loans to/from its members. The members of the society are permanent employees of Tata Motors, Pimpri, Pune.

ITA No.2596/PUN/2016 Tata Motors Karamchari Sahakari Patpedhi Ltd.,

The assessee claimed deduction u/s. 80P of the Act, inter alia, on

interest income of Rs.96,32,941/- earned from Bank of India on

Fixed Deposits. The AO denied the benefit of deduction on such

interest income. The Ld. CIT(A), following the Tribunal order

passed in the case of the assessee itself for the A.Y. 2009-10,

allowed the deduction in respect of interest on deposits, against

which the Revenue has come up in appeal before the Tribunal.

4.

Having heard both the sides and perused the relevant

material on record, it is observed that the Ld. CIT(A) decided the

issue in assessee’s favour by relying on the order passed by the

Tribunal in assessee’s own case for a preceding year. This order

also took into account the ratio in the case of Totgar’s Co-

operative Society (supra). Nothing has been brought on record to

demonstrate that the said order of the Tribunal has been reversed

or modified by the Hon’ble High Court in any manner. In the

absence of any distinguishing features for the instant year and

respectfully following the precedent given in the case of the

assessee itself, we uphold the impugned order.

5.

In the result, the appeal is dismissed.

Order pronounced in the Open Court on 02nd November,

2018.

Sd/- Sd/- (VIKAS AWASTHY) (R.S.SYAL) �याियक सद�य �याियक �याियक �याियक सद�य सद�य /JUDICIAL MEMBER उपा�य� सद�य उपा�य� उपा�य�/ VICE PRESIDENT उपा�य�

पुणे Pune; �दनांक Dated : 02nd November, 2018 सतीश

ITA No.2596/PUN/2016 Tata Motors Karamchari Sahakari Patpedhi Ltd.,

आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत

अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / The CIT (Appeals)-6, Pune. 3. आयकर आयु� / The Pr. CIT-5, Pune 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “बी 5. बी बी” / DR ‘B’, बी ITAT, Pune; गाड� फाईल / Guard file. 6.

// True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार

// True Copy //

Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune *

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