Annapurna Nagari Sahkari Vs ITO (ITAT Pune)
The appeal concerned Assessment Year 2013-14 and arose from the order of the National Faceless Appeal Centre passed under Section 250 of the Income-tax Act against an assessment framed under Sections 147, 144 and 144B. At the outset, the assessee did not press Grounds Nos. 1 to 4, which were dismissed as not pressed. The surviving issue in Grounds Nos. 5 to 8 was whether the assessee was entitled to deduction under Section 80P(2)(d) on interest income of ₹1,02,95,103 earned from deposits and investments with Cooperative Banks. The assessee submitted that the issue was covered by the Tribunal’s decision in its own case for Assessment Year 2020-21. The Revenue contended that the assessee had not furnished the necessary details before the lower authorities and sought restoration of the matter to the Assessing Officer. The Tribunal noted that the Assessing Officer had accepted that the interest income was earned from deposits with Cooperative Banks and observed that the allowability of deduction under Section 80P(2)(d) on such interest was no longer res integra. Following its decision in the assessee’s own case and earlier coordinate bench decisions holding that Cooperative Banks are basically Cooperative Societies for the purpose of Section 80P(2)(d), the Tribunal held that the assessee was entitled to deduction of ₹1,02,95,103. The findings of the CIT(A) on merits were set aside, Grounds Nos. 5 to 8 were allowed, Ground No. 9 was held to be general in nature requiring no adjudication, and the appeal was partly allowed.
