INDAPUR TALUKA PRATHAMIK SHIKANCHI SAHKARI PATASANSTHA MARYADIT,PUNE vs. INCOME TAX OFFICER WARD 14(5) PUNE, PUNE
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Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: MEMBER, & DR.DIPAK P. RIPOTE
।आयकर अपीलीय अिधकरण ”ए” �ायपीठ पुणेम�। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A” :: PUNE BEFORE MS.ASTHA CHANDRA, JUDICIAL MEMBER, AND DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1010/PUN/2024 िनधा�रण वष� / Assessment Year: 2017-18 Indapur Taluka Prathamik V The Income Tax Officer, Shikanchi Sahkari s Ward-14(5), Pune. Patasanstha Maryadit, At Post Indiapur, Near Kadam Hospital, Tal Indapur, Dist-Pune. Maharashtra – 413106. PAN: AAAAI1014K Appellant / Assessee Respondent / Revenue Assessee by Shri Pramod S Shingte – AR Revenue by Shri Ramnath P Murkunde - DR Date of hearing 09/09/2024 Date of pronouncement 11/09/2024 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the assessee is against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], under section 250 of the Income Tax Act, 1961 dated 12.03.2024 for the Assessment Year 2017-18. The assessee has raised the following grounds of appeal :
ITA No.1010/PUN/2024
“1. On the facts and in the circumstances of the case and in law, learned Assessing Officer have erred in in rejecting deduction under section 80P(2)(a)(i) for a sum of Rs.41,05,813 for part of the profit of appellant society without appreciating the fact that earning of interest is an integral part of society’s business and appellant prays for allowing such deduction.
On the facts and in the circumstances of the case and in law the learned Assessing Officer erred in treating the interest received from investment as income from other sources by rejecting appellant’s contention that said interest income is integral part of business activity and your appellant prays for cancellation of Assessing officer’s action.
Without prejudice to above ground on the facts and circumstances of the case and in the law Learned Assessing Officer erred in not allowing the deduction under section 80P(2)(d) on interest income received from other co-operative society. Your appellants pray for allowing of the same.
Without prejudice to above ground, On the facts and circumstances of the case and in the law Learned Assessing Officer erred in treating entire interest income as interest income received from other co-operative society or bank without allowing deduction on account of interest/administrative expenses. Your appellant prays for such deduction Your appellant craves for to add, alter, amend, modify, delete all above or any grounds of appeal before or during the course of hearing in the interest of natural justice.”
Submission of ld.AR : 2. The ld.AR for the assessee submitted that ITAT Pune in assessee’s own case in A.Y.2018-19 in ITA No.348/PUN/2024 vide order dated 04.06.2024 allowed the appeal of the assessee
ITA No.1010/PUN/2024
holding that interest earned from Co-operative Societies is eligible for deduction u/sec.80P(2)(a) of the Act. The Ld.AR explained that the facts for A.Y.2017-18 are identical to the facts of A.Y.2018-19. Therefore, ld.AR for the assessee pleaded that assessee’s appeal may be allowed.
Submission of ld.DR : 3. The ld.DR for the Revenue relied on the order of Assessing Officer and Ld.CIT(A).
Findings & Analysis : 4. We have heard both the parties and perused the records.
Facts of the case : 'Appellant is a credit co- operative society registered under Maharashtra Co-operative Societies Act 1960 and it has filed its Return of Income for A. Y 2017-18 on 24.10.2017 by declaring total income of Rs.10,67,460 by claiming deduction under section 80Pfora sum of Rs.1,43,15,867 The case was selected for scrutiny under CASS for the reason large deduction under u/ c VIA and Learned AO passed order under section 143(3) dt. 27.11.2019 by accepting he returned income, subsequently Hon'ble Pr. CIT has treated this order as erroneous and prejudicial to interest of revenue and set aside the proceedings by passing order under section 263 dt. 24.03.2022, in consequence to this order Learned AO has initiated the reassessment proceedings and passed order under section 143(3) r.w.s. 263 r.w.s. 144B dated 14.03.2023 wherein he has assessed the income at Rs.51,73,273 by disallowing the claim of Rs.41,05,813, being claim interest on deposits kept with other co- operative banks."
ITA No.1010/PUN/2024
4.1 During the year, assessee has earned Interest Income of Rs.41,05,813/- from Pune District Central Co-operative Bank(PDCC). It is observed that ITAT Pune in assessee’s own case in ITA No.348/PUN/2024 for A.Y.2018-19 had allowed the assessee’s appeal holding that the interest earned was eligible for deduction u/sec.80P(2)(a)(i) of the Act. The facts are identical. Therefore, respectfully following the decision for A.Y.2018-19, assessee’s appeal for A.Y.2017-18 is allowed.
In the result, appeal of the assessee is allowed. Order pronounced in the open Court on 11th September, 2024.
Sd/- Sd/- (MS.ASTHA CHANDRA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; �दनांक / Dated : 11th Sep, 2024/ SGR* आदेशक��ितिलिपअ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. िवभागीय�ितिनिध, आयकर अपीलीय अिधकरण, “ए” ब�च, 5. पुणे / DR, ITAT, “A” Bench, Pune. गाड�फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.
