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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-MS. SUCHITRA KAMBLE
PER DR. B.R.R. KUMAR, VICE-PRESIDENT :
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as "CIT(A)" for short), dated 16.03.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2017-18. 2. The Assessee has taken following grounds of appeal:-
“1. In law and on the facts and in the circumstances of the case, the order u/s 250 of the Act passed by the Ld. CIT (A) is arbitrary, erroneous, contrary to the provisions of law and on facts. Shree Vivekanand Co-op Credit Society Ltd Vs. ITO Asst. Year :– 2017-18 - 2–
In law and in the facts and circumstances of the case of the Appellant, the order u/s 250 of the Income Tax Act, 1961 passed by Ld. CIT(A) is without considering the facts of the case and responses filed by the appellant, is bad in law and deserves to be cancelled.
In law and in the facts and circumstances of the case of the Appellant, the Ld. CIT(A) has grossly erred in upholding disallowance of deduction claimed u/s 80(P)(2)(d) of the Act amounting Rs. 13,74,296/- without appreciating the fact that any income received from the investment held with a Cooperative Bank is eligible for deduction under section 80P(2)(d) of the Act.
In law and in the facts and circumstances of the case of the Appellant, the Ld. CIT(A) has grossly erred in upholding disallowance of deduction claimed u/s 80P(2)(a) (i) of the Act amounting Rs. 58,95,436/- without appreciating the fact that the appellant is a credit cooperative society and cannot be denied the benefits of deduction under section 80P(2)(a)(i) of the Act with respect to interest on advances given to members being attributable to business of the appellant.”
In this case, the Assessee had e-filed its Return of Income on 07.11.2017 declaring total income as Nil after claiming deduction under- section 80P of the Act of Rs. 72,69,732/-. The assessment order u/s 143(3) dated 12.12.2019 of the Act was passed thereby assessing the total Income at Rs. 72,69,732/- making the additions of Rs.13,74,296/- u/s. 80P(2)(d) and Rs.58,95,436/- u/s 80P(2)(a)(i) of the Act.
Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A) who also dismissed the appeal of the assessee .
Aggrieved, the assessee is now in appeal before the Tribunal.
Heard the arguments of both the parties and perused the record before us. The additions are as under:- Shree Vivekanand Co-op Credit Society Ltd Vs. ITO Asst. Year :– 2017-18 - 3–
• U/s 80P(2)(d) – Rs. 13,74,296/- - FD interest from Mehsana Dist. Central Co-operative Bank and Rajkot Nagarik Sahakari Bank.
The provisions of Section 80P(2)(d) are as under:- “80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely :— ….. ….. (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income;”
2 The undisputable facts in this case are that, The assessee is a co-operative society. The assessee has earned interest from its investments with other co- operative societies,
Hence the assessee is eligible for deduction under Section 80P(2)(d) of Rs.13,74,296/-.
• U/s 80P(2)(a)(i) – Rs.58,95,436/- - Advances to Members of Co- Operative Society
3 The provisions of Section 80P(2)(a)(i) are as under:- “80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2) The sums referred to in sub-section (1) shall be the following, namely :— (a) in the case of a co-operative society engaged in— (i) carrying on the business of banking or providing credit facilities to its members, or.” Shree Vivekanand Co-op Credit Society Ltd Vs. ITO Asst. Year :– 2017-18 - 4–
4 The undisputable facts in this case are that, The assessee is a co-operative society. The assessee is carrying on the business of banking or providing credit facilities to its members, The assessee received interest attributable to their business.
Hence the assessee is eligible for deduction under Section 80P(2)(a)(i) of Rs.58,95,436/-.
Keeping in view, the straight provisions of the Act and the facts of the source of income earned, the appeal of the assessee is hereby allowed.
The order is pronounced in the open Court on 22.11.2024 (SUCHITRA KAMBLE) VICE-PRESIDENT Ahmedabad; Dated 22/11/2024 Btk आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : अपीलाथ" / The Appellant
""थ" / The Respondent. 2. संबंिधत आयकर आयु" / Concerned CIT 3. आयकर आयु"(अपील) / The CIT(A)- 4. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. गाड" फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,उप/सहायक पंजीकार (Dy./Asstt.