ASHWATHAPURA PATHINA SOUHARDA SAHAKARI NIYAMITHA,BANGALORE vs. INCOME-TAX OFFICER, BANGALORE

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ITA 1358/BANG/2016Status: DisposedITAT Bangalore07 October 2016AY 2007-20083 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 eligible for deduction under Section 80P in respect of interest on fixed deposits. This decision followed a previous order of the Tribunal in the assessee's own case, which in turn followed a jurisdictional High Court judgment.

What were the facts?

The assessee, a Souharda Sahakari Niyamitha, claimed deduction under Section 80P of the Income Tax Act for the assessment years 2007-08 and 2008-09. The Assessing Officer and CIT(Appeals) denied this deduction.

What were the issues?

The key issue was whether the assessee was eligible for deduction under Section 80P of the Income Tax Act on its income from interest on fixed deposits.

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, “B” BENCH : BANGALORE

Before: SHRI A.K. GARODIA & SHRI VIJAY PAL RAO

For Appellant: Smt. S. Rajeswari, CA
For Respondent: Shri Sumer Singh Meena, Addl. CIT(DR)
Hearing: 04.10.2016Pronounced: 07.10.2016

Per A.K. Garodia, Accountant Member Both these appeals are filed by the assessee which are directed against the two separate orders of ld. CIT (Appeals)-III, Bangalore both dated 24.6.2016 for the AYs 2007-08 & 2008-09. Both these appeals were heard together and are being disposed of by way of this common order for the sake of convenience.

2.

In both the appeals, the only issue involved is regarding eligibility of the assessee for deduction u/s. 80P of the I.T. Act.

3.

It was submitted by the ld. AR of the assessee that this issue is squarely covered in favour of the assessee by the Tribunal’s order in assessee’s own case for AY 2009-10 & 2010-11 in & 817/Bang/2015 dated 10.11.2015. He submitted a copy of the same. The ld. DR supported the orders of authorities below.

4.

We have considered the rival submissions. We find that in the Tribunal’s order in assessee’s own case for the AYs 2009-10 & 2010-11, the Tribunal followed the judgment of Hon’ble jurisdictional High Court rendered in the case of Tumkur Merchants Souharda Credit Co-operative Ltd. In taxmann 309 (Kar) and by respectfully following this judgment of Hon’ble Karnataka High Court, the Tribunal decided the issue in favour of assessee. It was held that assessee is eligible for deduction u/s. 80P of the Act in respect of interest on fixed deposits.

5.

For the present two years, no difference in facts could be pointed out by the ld. DR of revenue and hence, we find no reason to take a contrary view. Therefore, respectfully following this Tribunal order, we decide the issue in dispute in favour of assessee in both the years.

6.

In the result, both the appeals of assessee are allowed.

Pronounced in the open court on this 7th day of October, 2016.

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