2019 (2) TMI 1784 - AT - Income Tax

Appellate Tribunal recalls orders for further adjudication on deduction u/s. 80P & 80P(2)(d) related to interest income

The Lunawada Taluka Primary School Teachers Co-op Credit Society Ltd., Lunawada, Shree Ram Co-op Credit Society Ltd., Dahod Versus The ITO, Ward-1

The Appellate Tribunal acknowledged an apparent error in failing to address specific grounds raised by the assessee regarding deduction u/s. 80P and ... Deduction u/s. 80P and 80P(2)(d) - interest income earned by the assessee on deposit with the nationalized banks - HELD THAT:- Issue was covered by the Hon’ble High Court in the case of State Bank of India [2016 (7) TMI 516 - GUJARAT HIGH COURT] . However with regard to the interest earned from other cooperative societies and co-operative banks the issue has not been adjudicated relating to claim of deduction u/s. 80P(2)(d). This issue has specifically been pleaded in ground no. 3 of Shree Ram Co-op. Credit Society and ground no. 5 in the case of the Lunawada Taluka Primary School Teachers Co-op. Credit Society Therefore, an apparent error has crept in the order of the Tribunal. On the other hand ld. Departmental representative relied on the order of Tribunal. Taking into consideration the above facts, we are satisfied that an apparent error has been crept in the order of the tribunal because it failed to adjudicate two specific grounds raised by the assessee, therefore, we recall both the orders in both the cases. Issues: Apparent error in the order dated 10th May, 2018 related to deduction u/s. 80P and 80P(2)(d) of the income tax act for interest income earned from nationalized banks, cooperative societies, and cooperative banks.Analysis:The judgment delivered by the Appellate Tribunal ITAT Ahmedabad involved two miscellaneous applications filed by the assessee pointing out an apparent error in the order passed on their respective appeals. The counsel for the assessee argued that the claim for deduction u/s. 80P and 80P(2)(d) of the income tax act was made, specifically concerning interest income earned from deposits with nationalized banks. The issue regarding interest earned from other cooperative societies and cooperative banks had not been adjudicated, unlike the case of State Bank of India. Grounds related to the claim of deduction u/s. 80P(2)(d) were raised in the cases of Shree Ram Co-op. Credit Society and Lunawada Taluka Primary School Teachers Co-op. Credit Society. The Departmental representative, however, relied on the Tribunal's order. Upon considering the arguments, the Tribunal acknowledged the apparent error in failing to address the specific grounds raised by the assessee. Consequently, both orders were recalled for further adjudication. The appeals were directed to be listed for adjudicating ground no. 3 in the case of Shree Ram Co-op. Credit Society and ground no. 5 in the case of Lunawada Taluka Primary School Teachers Co-op. Credit Society on 21st Feb, 2019, without issuing a separate notice to the parties. As a result, both miscellaneous applications were allowed, and the order was pronounced in the open court on 13-02-2019.