Assessee appeals for grant of deduction u/s 80P(2)(a)(i)

The Income Tax Appellate Tribunal has allowed an appeal by Bapooji Pattin Souharda Sahakari Niyamit concerning a deduction claimed under Section 80P(2)(a)(i) of the Act. The Assessing Officer had disallowed a deduction of Rs. 87,10,540/-, partly due to income earned from e-stamping services provided to the general public. The Tribunal's decision permits the assessee to claim the deduction.

IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH : BANGALORE
BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT
AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
ITA No.544/Bang/2019
Assessment year : 2013-14

Bapooji Pattin Souharda
Sahakari Niyamit,
7/8, Sector No.25,
Navanagar,
Bagalkot.
PAN: AAAAB 6930F

APPELLANT

VS

The Income Tax Officer,
Ward 1,
Bagalkot

RESPONDENT

Appellant by : Shri Ishwar Yanni, CA
Respondent by : Shri Kannan Narayanan, Jt. CIT(DR)(ITAT), Bengaluru

Date of hearing : 10.08.2021
Date of Pronouncement : 24.08.2021
O R D E R

The issue that arises for consideration is, as to whether the revenue authorities were justified in denying the claim of the assessee for reduction u/s 80P(2)(a)(i) of the Act. Originally the issue had come up before the Tribunal in ITA No. 827/B/17 and by its order dated 31.10.2017 remanded the matter back to the AO with a direction to apply the principles laid down by the Hon’ble Supreme Court in the case of Citizens Cooperative Society Ltd in Civil appeal No. 10245/2017 dated 08.08.2017.

2. On further appeal by the assessee before the Tribunal in ITA No.544/Bang/2019, the Tribunal decided the issue vide para 4 of its order dated 4.9.2019 in which the discussion is on the provisions of Sec 80P(2)(d) of the Act, which decision is on the point whether, interest income is eligible for deduction u/s 80P(2)(d) of the Act, whereas the deduction is one claimed u/s 80P(2)(a)(i) of the Act. In these circumstances, the order of Tribunal dated 04.09.2019 was recalled by the Tribunal in MP No.34/Bang/2020 dated 23.11.2020. Accordingly, this appeal in ITA No.544/Bang/2019 is taken up for hearing.

3. The assessee had earned income from e-stamping of Rs.4,71,572 which is earned form General public. In view of the above, the AO disallowed the deduction of Rs.87,10,540/- claimed u/s.80P(2)(a)(i) of the Act.

4. In the result, the appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on this 24th day of August, 2021.

Please find attached the enclosed file for the full judgement