2020 (10) TMI 715 - AT - Income Tax

Deduction u/s 80P(2)(a)(i) - interest received by the assessee from Jaipur Central Cooperative Bank is not covered u/s 80P(2)(d) as the assessee has not produced any document to prove that Jaipur Central Cooperative Bank is a Cooperative Society - validity of Certificate issued by the Registrar of Cooperative Societies - HELD THAT - Assessee has produced the Certificate issued by the Registrar of Cooperative Societies whereby Jaipur Central Cooperative Bank was registered as a Cooperative Society. As regards the objection of the ld. D/R regarding production of this Certificate at this stage as an additional evidence, it is to be noted that the Certificate produced by the assessee is not the assessee s own document but it is a document otherwise available in public domain and issued by the Registrar of Cooperative Societies. Therefore, this fact cannot be disputed or the Certificate issued by the Registrar of Cooperative Societies cannot be doubted. Substance in the objection made by the ld. D/R against the production of the Certificate issued by the Registrar of Cooperative Societies. Once Jaipur Central Cooperative Bank is found to be a Cooperative Society, the interest received from the said Cooperative Bank/Society is eligible for deduction under section 80P(2)(d). As relying on SHREE KESHORAI PATAN SAHAKARI SUGAR MILL AND VICE-VERSA 2018 (2) TMI 499 - ITAT JAIPUR held Jaipur Central Cooperative Bank is a Cooperative Society registered under Cooperative Societies Act, the interest received by the assessee from the said Cooperative Bank is eligible for deduction under section 80P(2)(d) of the Act. The disallowance/addition made by the AO and confirmed by the ld. CIT (A) is deleted.

Issues Involved:
1. Validity of the appellate order dated 25.03.2019 by CIT (A)-2, Jaipur.
2. Disallowance of deduction under section 80P(2)(a)(i) on account of interest received from a Co-operative Bank.
3. Confirmation of addition of ?2,51,866/- and allowance of deduction of ?50,000/- under section 80P(2)(c)(ii).
4. Right to add, amend, withdraw, or alter grounds of appeal.

Issue-wise Detailed Analysis:

1. Validity of the appellate order dated 25.03.2019 by CIT (A)-2, Jaipur:
The assessee contended that the appellate order was unjustified, arbitrary, and prejudged against the weight of evidence on record. The Tribunal noted that the CIT (A) did not dispute the claim of the assessee regarding the interest received from Jaipur Central Cooperative Bank being allowable under section 80P(2)(d), provided the bank is a Cooperative Society. The CIT (A) denied the claim due to the lack of documentation proving that Jaipur Central Cooperative Bank is a Cooperative Society.

2. Disallowance of deduction under section 80P(2)(a)(i) on account of interest received from a Co-operative Bank:
The assessee argued that the interest received from Jaipur Central Cooperative Bank should be eligible for deduction under section 80P(2)(d) as the bank is a Cooperative Society. The assessee produced a Certificate from the Registrar of Cooperative Societies confirming the bank's status as a Cooperative Society. The Tribunal found that the Certificate is a public document and cannot be doubted. Therefore, the interest received from Jaipur Central Cooperative Bank is eligible for deduction under section 80P(2)(d).

3. Confirmation of addition of ?2,51,866/- and allowance of deduction of ?50,000/- under section 80P(2)(c)(ii):
The CIT (A) had confirmed the disallowance of ?2,51,866/- on the grounds that the assessee did not provide documents proving Jaipur Central Cooperative Bank's status as a Cooperative Society. The Tribunal, however, accepted the Certificate provided by the assessee and found that the interest received from the Cooperative Bank is eligible for deduction under section 80P(2)(d). Consequently, the disallowance/addition made by the AO and confirmed by the CIT (A) was deleted.

4. Right to add, amend, withdraw, or alter grounds of appeal:
The appellant reserved the right to add, amend, withdraw, or alter any grounds of appeal before the finalization of the appeal. This right was acknowledged but not specifically addressed in the Tribunal's decision.

Conclusion:
The Tribunal allowed the appeal of the assessee, concluding that the interest received from Jaipur Central Cooperative Bank is eligible for deduction under section 80P(2)(d) of the IT Act. The disallowance/addition made by the AO and confirmed by the CIT (A) was deleted. The order was pronounced in the open court on 15/10/2020.

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