आयकर अपीलीय अधिकरण “बी” न्यायपीठ पुणे में ।

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI R.K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं . / ITA Nos.1800 & 1801/PUN/2025 धििाारण वर्ा / Assessment Years : 2018-19 & 2020-21 Dy. CIT, Shri Siddhanath Nagari Sahakari Satara Circle, Satara Patsanstha Marya Dahiwadi, Vs. At Post-Dahiwadi, Tal.-Man Satara, Satara-415508 PAN : AAOAS0059G अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri R.C. Doshi Department by : Shri S. Sadananda Singh Date of hearing : 11-11-2025 Date of 18-12-2025 Pronouncement : आदेश / ORDER PER ASTHA CHANDRA, JM :

These two appeals filed by the Revenue are directed against the two separate orders both dated 19.05.2025 of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [“CIT(A)/NFAC”] pertaining to Assessment Year (“AY”) 2018-19 and 2020-21. Since the issue(s) involved are identical, these were heard together and are being disposed of by this common order.

ITA No. 1800/PUN/2025, AY 2018-19

2. Briefly stated, the facts of the case are that the assessee is a Co-operative Society registered under the Maharashtra Co-operative Society Act, 1960. For the AY 2018-19, it e-filed its return of income on 16.10.2018 declaring total income of Rs.4,03,690/- and claiming deduction of Rs.5,15,931/- u/s 80P(2)(a)(i) of the Income Tax Act, 1961 (the “Act”). The case was selected for scrutiny under CASS on the following issues : (i) investments/advances/loans, (ii) expenses incurred for earning exempt income, and (iii) deduction from total income under Chapter VI-A. The Ld. Assessing Officer (“AO”) observed that the assessee trust has earned interest income of Rs.8,26,68,141/- from its investments with Co-operative Banks. In the computation of total income submitted during course of scrutiny, the assessee claimed that it is a Co-

operative Society and as such income of Rs.5,15,78,931/- from above-stated interest receipts is deductible under section 80P of the Act. The Ld. AO held that section 80P(2)(a)(i) and 80P(2)(d) do not cover the interest income earned from Co-operative Banks and disallowed the assessee’s claim for deduction u/s 80P by making addition of Rs.5,15,78,931/- to the income of Rs.4,03,690/- returned by the assessee, thereby assessing the total income at Rs.5,19,82,621/- vide his order dated 30.04.2021 passed u/s 143(3) r.w.s.

144B of the Act.

3. Aggrieved, the assessee filed appeal before the Ld. CIT(A)/NFAC challenging the above addition/disallowance made by the Ld. AO. The Ld. CIT(A)/NFAC allowed the appeal of the assessee holding that the assessee is eligible for the claim of deduction u/s 80P of the Act in respect of the interest income earned by it from the Co-operative Banks. The relevant observations and findings of the Ld. CIT(A)/NFAC are reproduced below :

“I find that the Hon'ble Supreme Court of India in Mavilayi Service Co-operative Bank and Others vs Commissioner of Income Tax, Calicut vide dated

12.01.2021has held as follows:

"1. Interpretation of Section 80P of the IT Act.

The marginal note to Section 80P which reads "Deduction in respect of income of co-operative societies" indicates the general "drift" of the provision. Secondly, for purposes of eligibility for deduction, the assessee must be a "co-operative society". A co-operative society is defined in Section 2(19) of the IT Act, as being a co-operative society registered either under the Co-operative Societies Act, 1912 or under any other law for the time being in force in any State for the registration of co-operative societies. This, therefore, refers only to the factum of a co-operative society being registered under the 1912 Act or under the State law. For purposes of eligibility, it is unnecessary to probe any further as to whether the co-operative society is classified as X or Y. Thirdly, the gross total income must include income that is referred to in sub-section (2). Fourthly, sub-clause (2)(a)(i) then speaks of a co-oper