Tribunal Upholds Deduction Eligibility for Co-op Bank Interest Income

The Tribunal allowed both appeals, upholding the deduction eligibility for interest received from Co-operative banks under section 80P(2)(d) for AYs 2017-18 and 2018-19. The Tribunal relied on legal precedents and judgments, dismissing the Revenue's appeal and deleting the additions made by the Assessing Officer. The decision was based on a Co-ordinate Bench judgment and jurisdictional High Court precedent, ultimately favoring the assessee and directing the Registry to include the order in relevant case files.

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Issues:
Appeals challenging denial of deduction under section 80P(2)(d) of Income Tax Act for interest received from Co-operative banks for AYs 2017-18 and 2018-19.

Analysis:
1. The appeals filed by the assessee challenged the denial of deduction under section 80P(2)(d) of the Income Tax Act for interest received from Co-operative banks for AYs 2017-18 and 2018-19. The orders under appeal were passed by the Learned Commissioner of Income Tax (Appeals), Surat, arising from assessment orders by the Assessing Officer under section 143(3) of the Act.

2. The counsel for the assessee argued that the issues in both appeals were common and identical. The contention was that the Co-operative banks, being primarily Co-operative societies, entitled the assessee to claim deductions under section 80P(2)(d) of the Act. Reference was made to a previous judgment by a Co-ordinate Bench in the assessee's own case, supporting the deduction claim.

3. The Departmental Representative for the Revenue relied on the lower authorities' orders. However, the Tribunal found the issue to be in favor of the assessee based on a previous judgment where it was held that interest income from Co-operative banks is eligible for deduction under section 80P(2)(d) without any further restriction or condition.

4. The Tribunal referred to various legal decisions, including those of the jurisdictional High Court and ITAT benches, supporting the eligibility of interest income earned by Co-operative banks for deduction under section 80P(2)(d). The Tribunal upheld the order passed by the CIT(A) in favor of the assessee.

5. The Tribunal dismissed the Revenue's appeal, confirming the deduction eligibility for interest income from Co-operative banks under section 80P(2)(d) based on the binding precedent of the jurisdictional High Court. The Tribunal also deleted the additions made by the Assessing Officer for both AYs 2017-18 and 2018-19, as the issue was conclusively settled in favor of the assessee by a Co-ordinate Bench judgment.

6. In conclusion, both appeals filed by the assessee were allowed, and the Tribunal upheld the deduction eligibility for interest received from Co-operative banks under section 80P(2)(d) for AYs 2017-18 and 2018-19 based on the binding legal precedents and previous judgments in the assessee's own case. The Tribunal directed the Registry to place a copy of the order in all relevant case files.

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