2018 (9) TMI 2105

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....rned from the Fixed Deposits with banks other than the Cooperative Banks/Societies with reference to the provision of section 80P of the Act, is the core issue. Considering the settled nature of the issue and hearing ITA No.2827/PUN/2016 Shri Laxmi Narayan Nagari Sahakari Pat Sanstha the Ld. DR for the Revenue, we proceed to adjudicate the appeal in the succeeding paragraphs. 3. Grounds raised by the Revenue read as under: 1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) was justified in holding that the assessee Society was eligible for deduction u/s.80P (2)(a)(i) of the Income Tax Act, 1961, in respect of interest income on bank deposits with banks other than co- operative banks/societies, ignoring....

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....e Act. 5. In the First Appellate Proceedings, CIT(A), after placing reliance on the decisions of the Tribunal in assessees own cases for A.Y. 2010-11 as well as another decision of the Tribunal in ITA No.257/PUN/2016 for the ITA No.2827/PUN/2016 Shri Laxmi Narayan Nagari Sahakari Pat Sanstha A.Y. 2012-13, allowed the claim of the assessee for the year under consideration. Aggrieved with the order of CIT(A), the Revenue filed the present appeal before the Tribunal raising the grounds extracted above. 6. Ld. DR for the Revenue Placed reliance on the order of AO. He further submitted that while dealing with the issue, CIT(A) ignored the provisions of section 80P(2)(d) of the Act wherein it has been held that income by way of interest or divi....

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....llant. An identical issue was dealt with by the Hon'ble ITAT, B Bench, Pune in appellant's own case for assessment year 2010-11 in ITA No.604/PN/2014 dated 19/08/2015. While deciding the issue, the Hon'ble Tribunal relied on the judgment of Hon'ble Supreme Court in the case of CIT Vs. Vegetable Products reported in 88 ITR 192 and held that the interest income earned on short term deposits kept with banks has to be allowed as deduction under section 80P(2)(a)(i). Further, I have also perused the order of the honourable ITAT, SMC Bench, Pune in appellant's case for assessment year 2012-13 wherein the Department was in appeal against the decision of CIT(A)-I, Kolhapur allowing appellant's claim of deduction under sectio....