Solapur District Police Employees Credit Co-Op Society , Solapur vs Principal Commissioner of Income-Tax -4, Pune

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R.S.

SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No.277/PUN/2022 Assessment Year : 2017-18 Sholapur Dist.

Police Employees Credit co.op.

Society Flat No.

11/14 Mellenium SDquae, second floor, 165 Railway lines, Solapur – 413 001 PAN: AABAS 7620 J Vs.

Pr.CIT-4 Pune Pune Appellant Respondent ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JM This appeal filed by the assessee emanates from the order of the ld.

Pr.

C.I.T. – 4, Pune dated 21-03-2022 passed u/s.263 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) for A.Y.

2017-18.

2.

Briefly stated, the facts of the case are that the assessee is a Cooperative credit society engaged in providing credit facilities to its members.

The assessee filed return declaring total income at Nil after claiming deduction u/s.80P for a sum of Rs.37,92,216/-.

The assessment was completed by the Assessing Officer (AO) u/s.143(3) at the declared income.

The ld.

PCIT, on examination of records, observed that the assessee claimed deduction u/s.80P to the tune of Rs.37,92,216/- on interest income earned from deposits kept with cooperative societies.

He, therefore, opined that, the assessment order, allowing deduction u/s.80P on such interest income, was erroneous and prejudicial to the interest of the Revenue.

Setting aside the assessment order, he directed the AO to pass the assessment order afresh as per law after allowing opportunity of hearing to the assessee.

Aggrieved thereby, the assessee has approached the Tribunal.

Assessee by None Revenue by Shri Rajarshi Dwivedy Date of hearing 13-12-2022 Date of pronouncement -12-2022 ITA No.

277/PUN/2022 Sholapur Dist.

Police Employees Credit Co-op.

Society 2 3.

None appeared on behalf of the assessee.

We have heard the ld.

D.R. and perused the material available on record.

The assessee is admittedly a Cooperative credit society engaged in providing credit facilities to its members. s members.

PCIT has held the assessment order to be erroneous and prejudicial to the interest of the Revenue only on the ground that the claim of deduction u/s.80P on interest income amounting to Rs.37,92,216/- was not in order.

In this regard, it is observed that though co-operative banks, other than primary agricultural credit society or a primary co-operative agricultural and rural development bank, are not eligible for deduction pursuant to insertion of section 80P(4) w.e.f.

1.4.2007, but this provision does not dent the otherwise eligibility u/s 80P(2)(d) of the Act of a co-operative society on interest income on investments/deposits parked with a co- operative bank, which is a registered co-operative society as per section 2(19) of the Act, defining co-operative society to mean a co-operative society registered under the Co-operative Societies Act, 1912 or under any law for the time being in force.

The assessee is also a Co-operative society registered.

4.

Similar view has been taken by the Pune Benches of the Tribunal in several cases including The Sesa Goa Employees Coop.

Credit Society Ltd.

Vs.

ACIT (ITA No.203/PUN/2019, order dated 16-11-2022).

In view of the foregoing discussion, we are satisfied that the AO rightly allowed deduction u/s.80P(2)(a) on interest income and the ld.

PCIT was not justified in interfering with the same.

The impugned order is set aside.

5.

In the result, the appeal is allowed.

Order pronounced in the Open Court on 14th December, 2022.

Sd/- sd/- (R.S.

SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune, dated the14th day December 2022.

Ankam ITA No.

Society 3 Copy of the Order is forwarded to: 1.

The Appellant; 2.

The Respondent; 3.

The Pr.

CIT – 4, Pune.

The CIT concerned DR ‘B’, ITAT, Pune 6.

Guard file /// TRUE COPY /// BY ORDER, // True Copy // Senior Private Secretary ITAT, Pune Date 1.

Draft dictated on 13-12-2022 Sr.PS 2.

2 Sr.PS 2.

Draft placed before author 13-12-2022 Sr.PS 3.

Draft proposed & placed before the second member JM 4.

Draft discussed/approved by Second Member.

JM 5.

Approved Draft comes to the Sr.PS/PS Sr.PS 6.

Kept for pronouncement on Sr.PS 7.

Date of uploading order 14-12-2022 Sr.PS 8.

File sent to the Bench Clerk 14-12-2022 Sr.PS 9.

Date on which file goes to the Head Clerk 14-12-2022 10.

Date on which file goes to the A.R.

11.

Date of dispatch of Order. *