2019 (1) TMI 1201 - AT - Income Tax

Deduction u/s 80P for Interest on Bank deposits with nationalized banks - Held that - In the present appeal is squarely covered by the order of Tribunal in assessee s own case relating to assessment year 2012-13 wherein the Tribunal has in turn, relied on various orders of Tribunal and held that the assessee is entitled to claim the benefit under section 80P on the interest income earned from nationalized banks. - Decided in favour of assessee.

Summary

Issues:
- Deduction u/s 80P for Interest on Bank deposits with nationalized banks
- Applicability of Pune ITAT order on the issue
- Just and equitable relief claim
- Awarding cost for not following Pune ITAT Decision
- Deletion of Interest u/s 234B

Analysis:
1. Deduction u/s 80P for Interest on Bank deposits: The assessee, a Credit Co-operative Society, filed an appeal against the order of CIT(A) disallowing the deduction under section 80P of the Income-tax Act, 1961 on interest income from investments in Nationalized banks. The Assessing Officer added the interest amount to the total income. The Tribunal noted that the issue was previously decided in favor of the assessee in their own case for the assessment year 2012-13 and 2013-14. Relying on these precedents, the Tribunal allowed the deduction under section 80P for the interest income earned from nationalized banks.

2. Applicability of Pune ITAT order: The Tribunal emphasized that the issue raised in the appeal was already settled in the assessee's favor in previous cases decided by the Pune Bench of Tribunal. The Tribunal referred to specific orders and findings from earlier cases to support the decision to grant the benefit of section 80P to the assessee for interest income from FDs with nationalized banks. The Tribunal followed a consistent approach based on the principle of parity of reasoning in allowing the deduction.

3. Just and equitable relief claim: The assessee also sought just and equitable relief in the appeal. However, the Tribunal did not provide specific details regarding this claim in the judgment. It appears that the primary focus of the decision was on the deduction under section 80P and the applicability of previous Tribunal orders.

4. Awarding cost for not following Pune ITAT Decision: The assessee requested an award of costs for CIT(A) not adhering to the Pune ITAT Decision. Although the judgment mentions this ground of appeal, it does not provide further elaboration on whether costs were awarded or the reasoning behind the decision. The main emphasis of the Tribunal's ruling was on allowing the deduction under section 80P based on established precedents.

5. Deletion of Interest u/s 234B: The appeal also included a prayer for the deletion of interest under section 234B. However, the judgment does not provide detailed information or analysis regarding this specific issue. The primary focus of the Tribunal's decision was on the deduction under section 80P for the interest income from nationalized banks.

In conclusion, the Appellate Tribunal ITAT Pune allowed the appeal of the assessee, granting the deduction under section 80P for interest income from investments in nationalized banks based on previous Tribunal decisions. The judgment highlighted the importance of consistency in applying legal principles and precedents to ensure fair treatment for taxpayers.