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Income Tax Appellate Tribunal, PANAJI ‘SMC’ BENCH : PANAJI
Before: SHRI SATBEER SINGH GODARA
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI ‘SMC’ BENCH : PANAJI (THROUGH VIRTUAL HEARING) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA.No.260/PAN/2019 Assessment Year 2009-2010 Bellad Bagewadi Krishi Seva The Income Tax Officer, Sahakari Bank Ltd., Bellad vs., Ward – 1, Bagewadi Tal Hukkeri Dist. Belgaum Gokak, State-Karnataka. Karnataka. PIN 590 005 PAN AAAAT0640C (Appellant) (Respondent) For Assessee : Shri Praveen P Ghali For Revenue : Shri N. Shrikant Date of Hearing : 17.11.2022 Date of Pronouncement : 21.11.2022 ORDER This assessee’s appeal for assessment year 2009-10, arises against the CIT(A)’s Belgaum order dated 05.01.2019 passed in Case No. CIT(A)/BGM/10129/2018-19, in proceedings u/s. 143(3) r.w.s. 260A of the Income Tax Act, 1961 (in short "the Act").
Heard both the parties. Case file perused.
Coming to the assessee’s sole substantive grievance that both lower authorities have erred in law and on facts in denying it section 80P(2)(a)(i) deduction of Rs.25,01,300/- in issue, the CIT(A)’s detailed discussion to this effect reads as follows :
2 ITA.No.260/Pan/2019 & ITA.No.296/Pan/2019 Bellad Bagewadi Krishi Seva Sahakari Sangh Ltd., Hukkeri. Karnataka.
3 ITA.No.260/Pan/2019 & ITA.No.296/Pan/2019 Bellad Bagewadi Krishi Seva Sahakari Sangh Ltd., Hukkeri. Karnataka.
4 ITA.No.260/Pan/2019 & ITA.No.296/Pan/2019 Bellad Bagewadi Krishi Seva Sahakari Sangh Ltd., Hukkeri. Karnataka.
The Revenue vehemently argued during the course of hearing that since assessee has derived the impugned interest income from long term deposits made with M/s. Vishwanath Sugar Ltd., it does not deserve the impugned deduction as the said interest payer was not a member of the society. I find that the issue of such a membership is no more res integra in the light of hon’ble apex court recent landmark decision in Mavilayi Service Co- operative Bank Ltd., vs., CIT [2021] 431 ITR 1 (SC) wherein their lordships have rejected the Revenue’s identical stand seeking to create a distinction between nominal and regular members of an eligible society. This is not the Revenue’s case raised during the course of hearing that M/s. Vishwanath Sugars Ltd., is otherwise not a member of this assessee society or its membership violates the provision of the Karnataka state co-operative law, in any manner, whatsoever. The impugned section 80P deduction disallowance is deleted therefore.
No other ground or argument has been raised during the course of hearing.
5 ITA.No.260/Pan/2019 & ITA.No.296/Pan/2019 Bellad Bagewadi Krishi Seva Sahakari Sangh Ltd., Hukkeri. Karnataka.
This assessee’s appeal is allowed in above terms.
Sd/- [SATBEER SINGH GODARA] JUDICIAL MEMBER Pune, Dated 21st November, 2022 VBP/- Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Panaji ‘SMC’ Bench, Panaji 6. Guard File. //By Order//
Assistant Registrar, ITAT, Pune Benches, Pune.