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Income Tax Appellate Tribunal, ‘B’ (SMC
Before: SHRI MAHAVIR SINGH
आयकर अपील सं./ 2021-2022. M/s. Vellakovil Co-operative Vs. The Income Tax Officer, Primary Agricultural and Rural Ward No.68, Chennai. Development Bank Ltd, Vellakovi Cpard Bank Ltd, Erode 638 111. [PAN AAAAV 2121Q] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : None ��यथ� क� ओर से /Respondent by : Shri D. Hema Bhupal, IRS, JCIT. सुनवाई क� तार�ख/Date of Hearing : 22.02.2024 घोषणा क� तार�ख /Date of Pronouncement : 22.02.2024 आदेश/ O R D E R This appeal by assessee is arising out of the order of the Additional/Joint Commissioner of Income Tax (Appeals)-5, Office of the Commissioner of Income Tax (Appeal), Kolkata in Order No.ITBA/APL/S/250/2023-24/1058267354 (1), dated 28.11.2023. The assessment was framed by the ADIT, CPC, Bengaluru for the assessment year 2021-2022, passed u/s. 143(1) of the Income Tax Act, 1961 (in short ‘’the Act’) vide order dated 28.11.2023.
The only issue in this appeal of assessee is with regard to order of 2. the ld.CIT(A) confirming the action of the ld. Assessing Officer in disallowing the claim of deduction u/s.80P(2) (d) of the Act in regard to interest received from Erode District Central Cooperative Bank. For this, assessee has raised various grounds, which are argumentative and factual and need not be reproduced.
The brief facts of the case are that the ld. Assessing 3. Officer noted that assessee is a Co-operative Society filed its return of income declaring Nil income on 08.01.2022 after claiming deduction u/s.80P of the Act to the tune of Rs.18,74,921/-. Out of which Rs.13,67,760/- was allowed u/s.80P(2)(a) (i) of the Act by the Centralized Processing Center, Bengaluru, whereas Rs.5,07,161/- received as interest on investments from Erode District Central Cooperative Bank was disallowed u/s. 80P(2)(d) of the Act. Aggrieved, assessee preferred an appeal before the ld. Commissioner of Income Tax (Appeals).
The ld. Commissioner of Income Tax (Appeals) confirmed the 4. action of the ld. Assessing Officer. Aggrieved, assessee preferred an appeal before the Tribunal.
Before me, none is present from assessee’s side. I have 5. heard ld. Senior DR and gone through facts and circumstances of the case.
Admittedly, the assessee is a Cooperative Society, registered 6. under the Tamil Nadu Cooperative Societies Act, 1983. Assessee received Rs.5,07,161/- as interest on investments from Erode District Central Cooperative Bank. Erode District Central Cooperative Bank is registered under Tamil Nadu State Co-operative Act and once it is registered under Tamil Nadu State Co-operative Act assessee is as such eligible for deduction. Since the assessee is a Co-operative Society and it has received dividend from Erode District Central Cooperative Bank the same is eligible for claim of deduction in view of the decision of the Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd., & Ors. Vs. CIT, 123 Taxmann.com 161 (SC). Similar view has been taken by the Tribunal in the case of Tamilnadu Co-operative State Agriculture and Rural Development Bank Limited in to 33/CHNY/2021 vide order dated 29.04.2022 following the decision of Hon’ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd., supra and the Hon’ble Madras High Court in the case S-1308, Ammapet Primary Agricultural Co- operative Bank Ltd.,in T.C.A Nos.882 and 891 of 2018. Respectfully following the same, I allow the claim of deduction u/s.80P(2)(d) of the Act. Accordingly, the appeal of the assessee is allowed.
In the result, the appeal of the assessee in 2021-2022 stands allowed Order pronounced in the open court at the time of hearing on 22nd day of February, 2024, at Chennai.