2018 (3) TMI 309 - AT - Income Tax

Claim of deduction u/s.80P to the assessee-co-operative society - Held that - It is clear from the order of CIT(A) that after applying judicial pronouncements, as laid down in M/s. The Quepem Urban Co-operative Credit Society ltd., Vs ACIT Circle-1 2015 (6) TMI 573 - BOMBAY HIGH COURT held that assessee-Co-operative society is eligible for deduction u/s. 80P. The finding recorded by CIT(A) has not been controverted by learned DR by bringing any positive material on record. No reason to interfere in the order of CIT(A). - Decided against revenue

Summary

Issues:
Appeal against order of CIT(A)-37, Mumbai for A.Y.2012-13 regarding deduction u/s.80P for assessee-co-operative society.

Analysis:
The appeal filed by Revenue challenged the CIT(A)'s order allowing the deduction claim u/s.80P for the assessee-co-operative society. The dispute centered around whether the assessee, a Co-operative Credit society, qualified for the deduction under section 80P. The CIT(A) allowed the claim after considering the definition of a Co-operative society and a Co-operative Bank under relevant acts. The CIT(A) referred to judicial precedents like the case of M/s. The Quepem Urban Co-operative Credit Society ltd., which concluded that the assessee was not a Co-operative Bank and thus eligible for the deduction under section 80P. Additionally, decisions from other ITAT benches supported the eligibility of Co-operative societies for deduction under section 80P(2)(d) based on the nature of income derived from investments in Co-operative Banks. The ITAT Mumbai also ruled in similar cases, emphasizing the eligibility of Co-operative societies for deductions under section 80P(2)(d) based on the source of income. The judgment highlighted that a Co-operative society could claim deductions under section 80P(2)(d) for interest received from investments in Co-operative Banks, irrespective of the nature of the income assessed. The judgment further referenced the case of ACIT vs. M/s. Jawala Cooperative Urban Thrift & Credit Society Ltd., which upheld the eligibility of fixed deposits placed with Co-operative Banks for exemption under section 80P(2)(d) and 80P(2)(i) of the Act. The ITAT upheld the CIT(A)'s order, allowing the deduction claim of the assessee-Co-operative society under section 80P. The judgment emphasized the acceptance of the deduction claim in subsequent years and directed the AO to allow the deduction for the disputed amount. The ITAT dismissed the Revenue's appeal, affirming the eligibility of the Co-operative society for the deduction under section 80P based on legal interpretations and precedents.

In conclusion, the ITAT Mumbai upheld the CIT(A)'s order, allowing the deduction claim u/s.80P for the assessee-Co-operative society. The judgment relied on legal interpretations, precedents, and the nature of income derived from investments in Co-operative Banks to establish the eligibility of Co-operative societies for deductions under section 80P. The ITAT's decision was based on thorough analysis and consideration of relevant legal provisions and judicial pronouncements, ultimately dismissing the Revenue's appeal and affirming the eligibility of the Co-operative society for the deduction under section 80P.