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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 ..... 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 assessee society is to provide credit facility to its members. The assessee filed the return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to claim the deduction u/s. 80P(2)(d) of the Act. We find force in the argument of the Ld. Counsel. The relevant part of Sec. 80P(2)(d) of the Act 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-section (1) shall be the following, namely: (a) ........... (b) ........... (c) 2(d): In respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the assessee. We further find that this issue stands squarely covered in favour of the assessee by the decision of the ITAT, A Bench in the case of Sindhudurg Zilla Madhyamik Adhyapak Sahakari patpedhi Maryadit, Sindhudurg Vs. ITO, Ward-2(4), Kudal ITA No. 1825/PN/2013. The operative part of the said decision is as under: 7. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. The Ist dispute in the grounds of appeal is regarding the allowability of deduction u/s.80P(2)(d) in respect of interest income of Rs. 31,77,452/- and dividend income of Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 coop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) that the provisions of Sec. 80P(2)(a)(i), in our opinion the decision of the Hon'ble Supreme Court in the case of Totagars Cooperative Vs. ITO (supra) is against the assessee as interest received on deposits with Aurangabad District Central Co-operative Bank cannot be said to be the income derived from providing credit facilities to its members. We, accordingly, answer the ground taken by the revenue. But, finally we have confirmed order of Ld. CIT(A) giving relief to the assessee u/s. 80P(2)(d)." 2.1 Facts being similar, so following the same reasoning, the assessee is entitled to deduction u/s.80P(2)(d). In view of above, assessee is eligible for claiming deduction u/s.80P(2)(d) of I.T Act, which is available for income earned from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Co-operative Bank Ltd. (SDCCL). It is a contention of the assessee that the said interest income is allowable as a deduction u/s. 80P(2)(d) of the Incometax Act. Both the authorities below declined to consider the claim of the assessee. Now, the assessee is in appeal before us. 7. We have heard the parties and perused the record. The identical issue has been decided here-in-above in the case of Veejmandal's Workers Federation Sahakari Patsanstha Maryadit, Sindhudurg being ITA No. 29/PN/2014. Following the reasons in the said case for allowing the claim of the assessee, in this case also we hold that the interest income of Rs. 7,55,687/- (Rs.7,54,826/- + Rs. 803/-) is to be allowed as a deduction u/s. 80P(2)(d) of the Income-tax Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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