9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 1027 - AT - Income TaxDeduction u/s 80P(2)(d) - interest income from Co-operative Banks - conflicting decisions - whether interest income derived from deposits with cooperative banks is eligible for deduction under section 80P(2)(d) of the Act or not? - HELD THAT - The Hon'ble Bombay High Court in the case of K. Subramanian vs. Siemens India Ltd. 1983 (4) TMI 3 - BOMBAY HIGH COURT has held that when two conflicting decisions of non-jurisdictional High Courts are available, the view that favours the assessee is to be preferred. Accordingly, following the decision of Totagars Co-operative Sale Society 2017 (1) TMI 1100 - KARNATAKA HIGH COURT and case of Vankar Sahakari Sangh 2016 (7) TMI 1217 - GUJARAT HIGH COURT the deduction claimed by the assessee under section 80P(2)(d) of the Act in respect of interest derived from investments with the cooperative banks is allowed. Appeals by assessee are allowed.
Issues:
1. Disallowance of deduction of interest income under section 80P(2)(d) of the Income Tax Act, 1961. Analysis: The judgment by the Appellate Tribunal ITAT Mumbai involved two appeals by the assessee against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2017-18 and 2018-19. The main issue in both appeals was the disallowance of the assessee's claim of deduction of interest income under section 80P(2)(d) of the Act. The assessee, a Co-operative Housing Society, had earned interest income from deposits with Co-operative Banks and claimed deduction under section 80P(2)(d). However, the Assessing Officer disallowed the deduction based on the provisions of section 80P(4) inserted by the Finance Act, 2006. The CIT(A) upheld the disallowance, leading to the appeals before the Tribunal. The assessee argued that various judgments, including a decision of the Hon'ble Apex Court, supported their eligibility for deduction under section 80P(2)(d) on interest income from Co-operative Banks. On the other hand, the Department relied on the decisions of the Hon'ble Supreme Court and the Hon'ble Karnataka High Court to defend the disallowance of the deduction. The Tribunal analyzed the provisions of section 80P(4) and concluded that it did not exclude Co-operative Societies, other than Co-operative Banks, from claiming deductions under section 80P for interest income from Co-operative Banks. The Tribunal referred to previous cases and highlighted that interest income derived by a Co-operative Society from investments with a Co-operative Bank would be entitled to deduction under section 80P(2)(d) of the Act. The Tribunal also discussed conflicting decisions by different High Courts regarding the eligibility of interest income from Co-operative Banks for deduction under section 80P(2)(d). In the absence of a judgment by the Jurisdictional High Court, the Tribunal followed the principle that favors the assessee when conflicting decisions exist. Consequently, the Tribunal allowed the deduction claimed by the assessee under section 80P(2)(d) for interest income from investments with Co-operative Banks. In conclusion, the Tribunal held that the assessee was eligible to claim deduction under section 80P(2)(d) for interest income from deposits with Co-operative Banks and allowed both appeals by the assessee. This comprehensive analysis of the judgment highlights the interpretation of relevant legal provisions, the arguments presented by both parties, and the Tribunal's reasoning for allowing the deduction claimed by the assessee.
|
