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TMI Blog2015 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... e as a deduction on gross basis u/s. 80P(2)(d) of the Act. - Decided in favour of assessee. - ITA No. 29/PN/2014, ITA No. 30/PN/2014, ITA No. 31/PN/2014 - - - Dated:- 24-12-2014 - Shri G. S. Pannu And Shri R. S. Padvekar,JJ. For the Petitioner : Shri Rajesh Damor For the Respondent : Shri V.G. Ginde Sushil V Modak ORDER Per R. S. Padvekar, JM:- This batch of three appeals are filed by three different assessees challenging the respective impugned orders of the Ld. CIT(A), Kolhapur dated 06-12-2013, 08-11-2013 and 29-11-2013 for the A.Y. 2010-11. The facts and issues are identical in all these appeals hence, these appeals are disposed off by this common order for the sake of convenience. 2. We first take the assessee s appeal being ITA No. 29/PN/2014. 2.1. The assessee has taken the multiple grounds. The first issue is in respect of the taxability of the interest income earned by the assessee credit Co-operative society. This issue arises from Ground Nos. 1 to 3. The briefly stated facts are as under. The assessee society is a Cooperative Credit Society registered under Maharashtra Co-operative Societies Act, 1960. The main object of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. We also find that deduction u/s. 80P(2)(d) claimed of the assessee is well supported by the decision of the ITAT, Chandigarh in the case of Punjab State Federation of Co-operative House Building Societies Ltd. Vs. Income Tax Officer 2 ITD 617 (Chd.). There is no ambiguity in the language of Sec. 80P(2)(d). Sindhudurg District Central Co-operative Bank Ltd. is a Co-operative Society though engaged in the business of banking and hence, the assessee is entitled to claim the deduction in respect of the interest earned or received from the Sindhudurg District Central Co-operative Bank Ltd. On the plain reading of the language used in Sec. 80P(2)(d) in our opinion it is an independent deduction other than that of Sec. 80P(2)(a)(i). We, therefore, hold that the interest income earned on the fixed deposit or any other bank account with Sindhudurg District Central Co-operative Bank Ltd. is allowable as a deduction on gross basis u/s. 80P(2)(d) of the Act. Accordingly, this issue is decide in favour of the assessee. 5. The next issue is the dividend income of ₹ 11,630/- which is received on the shares of Sindhudurg District Central Co-operative Bank Ltd. Sec. 80P(2)(d) speaks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngabad District Central Cooperative Bank. The relevant observation of the Tribunal reads as under : 2. At the outset of hearing, learned Authorized Representative pointed out that this issue is covered in favour of assessee by the decision of ITAT, Pune B Bench in ITA No.l047/PN/2012 in the case of ACIT Vs. M/s. Bajaj Auto Ltd. Employees Co-op. Credit Society Ltd., wherein the Tribunal has decided the issue in favour of the assessee by observing as under: 4. We have heard the Ld. DR. None was present for the assessee. We have also perused the order of the authorities below. In our opinion so far as the amount of interest received on the deposit with Aurangabad District Central Co-operative Bank is concerned the Assessing Officer has not properly appreciated the provisions of law. Sec. 80P(2)(d) reads as under: 80P(1): Where, in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. 80P(2): The sums referred to in sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly allowed. 8. Since the assessee succeeds on the issue of allowability of deduction u/s.80P(2)(d) of the I.T. Act, therefore, the alternate grounds relating to allowability of the interest dividend income u/s.80P(2)(a)(i) of the I.T. Act becomes academic in nature and therefore the same are not being adjudicated. 6. Now, we take up the assessee s appeal being ITA No. 30/PN/2014. 6.1. In this case also the assessee has taken the multiple grounds. The first issue for our consideration is denying the deduction to the assessee in respect of the income earned on the fixed deposits and saving bank account from Sindhudurg District Central Co-operative Bank Ltd. (SDCCL) of ₹ 7,55,687/-. The assessee society is a Cooperative Credit Society registered under Maharashtra Co-operative Societies Act, 1960. The main object of the assessee society is to provide credit facility to its members. It has earned interest income to the extent of ₹ 7,55,687/- and said interest is earned on the deposits and the saving bank account with Sindhudurg District Central Co-operative Bank Ltd. (SDCCL). It is a contention of the assessee that the said interest income is allowable as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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