ITO Vs Shri Bhairavnath Multistate Cooperative Credit Society Ltd. (ITAT Pune)
Summary: The Pune Bench of the Income Tax Appellate Tribunal considered a recalled Revenue appeal for Assessment Year 2014-15 in the case of a Co-operative Credit Society registered under the Multi State Co-operative Societies Act, 2002. The society was engaged in providing credit facilities to its members, accepting deposits and giving loans to members in accordance with cooperative laws. It had filed its return of income on 25.09.2014 declaring total income at Nil.
During the relevant year, the assessee received interest income of Rs.3,39,44,265/- from deposits made with commercial banks, cooperative banks and cooperative societies. The Assessing Officer completed the assessment under Section 143(3) by order dated 23.11.2016 at a total income of Rs.33,69,640/-. While doing so, the Assessing Officer denied the assessee’s claim of exemption of Rs.2,65,15,064/- under Section 80P(2)(a)(i)/80P(2)(d) in respect of interest and dividend income earned from deposits with various cooperative banks/societies as well as nationalised banks.
The CIT(A), however, allowed the assessee’s claim under Section 80P(2)(a)(i)/80P(2)(d), relying upon decisions of various Benches of the Tribunal and CBDT Circular No.18/2015 dated 02.11.2015. The Revenue challenged the CIT(A)’s order before the Tribunal.
The Tribunal noted that the matter was a recalled matter pursuant to order dated 30.05.2024 in M.A. No.285/PUN/2022, concerning the Revenue’s appeal in ITA No.2484/PUN/2017 dated 01.08.2018. On consideration of the issue, the Tribunal held that the matter was no longer res integra in view of decisions of Coordinate Benches.
