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Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR. DIPAK P. RIPOTE & SHRI VINAY BHAMORE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax, Appeal(ADDL/JCIT)(A)-5, Kolkata u/sec.250 of the Act dated 27.02.2024. The Assessee has raised following grounds of appeal :
1. The learned A.O has grossly erred in disallowing the deduction claimed u/s.80P(2)(a)(i) of Income Tax Act, 1961 in respect of interest received of Rs. 4,12,160/ from Central Bank of India, and Dena Bank, which is a attributed to the part of business income and hence appellant is eligible for the deduction. Therefore, finding of the learned A.O be vacated and due deduction u/s. 80P(2)(a)(i) of the I T Act may please be allowed. Mhasimata Mahila Gramin Bigar Sheti Sahakari Pathsanstha Limited [A]
2. The learned A.O. has grossly erred in charging the Interest of Rs.29,822/-, u/s.234 B of the I T Act, even though appellant society is not liable to pay the Advance Tax as per provisions of section 208 of the I T Act. Therefore, Interest charged at Rs.29,822/-, u/s.234 B of the IT Act, may please be deleted.
The Appellate craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal.”
At the outset of hearing, Shri Hemant Shah attended appeared on behalf of the assessee. Brief facts of the case : 2.1 In the assessment order it is mentioned that the assessee society has received interest of Rs.4,12,160/- on investment made with Nationalized Banks i.e.Rs.1,98,510/- from Central Bank of India, Rs.1,99,606/- and Rs.14,044/- from Dena Bank. The Assessing Officer denied assessee’s claim for deduction u/sec.80P(2)(A) following the decision of Totgars’ Co-operative Sale Society Ltd., Vs. ITO.
Findings &Analysis : 4. The Assessing Officer(AO) in the assessment order denied assessee deduction u/sec.80P(2) of the Act relying on the decision of the Hon’ble Karnataka High Court in the case of PCIT Vs. Totagars Co-operative Sale Society [2017] 83 taxmann.com 2 Mhasimata Mahila Gramin Bigar Sheti Sahakari Pathsanstha Limited [A] 140(KAR). The AO in the Assessment Order observed that the Banks in which the assessee has deposited / invested funds such as Central Bank of India & Dena Bank are not Co-operative Societies. Therefore, the AO held that assessee is not eligible for deduction u/sec.80P(2)(a)(i) of the Act. Aggrieved by the assessment order, assessee filed appeal before the ld.CIT(A). Ld.CIT(A) confirmed addition made by the AO. Aggrieved by the order of the Ld.CIT(A), assessee has filed appeal before the ITAT.
The assessee had claimed deduction u/sec.80P(2) for the interest earned from Central Bank of India and Dena Bank. In this case, the AO has ignored most important submission of the assessee that the Assessee is a Co-Operative Society registered under Maharashtra State Co-Operative Society Act and it is under the control of