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TMI Blog2015 (9) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of assessee. - ITA No. 903(Bang) 2014 - - - Dated:- 26-6-2015 - Vijay Pal Rao, JM And Jason P Boaz, AM, JJ. For the Appellant : Shri S Ranganath, CA For the Respondent : Dr P K Srihari, Addl. CIT ORDER Per Vijaya Pal Rao, JM. This appeal by the assessee is directed against the order dated 01-04-2014 of CIT(A) for the assessment year 2010-11. The assessee has raised the following grounds; 1. The order of the CIT is bad in law 2. The ld. Appellate Authority erred in confirming the action of the ld. Assessing Authority in applying the concept of NPA treating the appellant as a Bank and not as Co-operative Society making addition of ₹ 19,16,609/- on account of interest receivable on standard asset from loan granted to the members. 3. Without prejudice to the above, L.A.A erred in following the judgment of Hon'ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd Vs ITO, which is not applicable to facts of the case. 4. The L.A.A erred in not granting deduction on account u/s 80P(2)(a)(i) on excess depreciation amounting to ₹ 41.578/- 5. The L.A.A. erred in not granting deduction on account u/s 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The CIT(A), though accepted the claim of Section 80P of the assessee in respect of other interest incomes except the interest receivable on the standard assets which is not accounted by the assessee as it was outstanding. 5. The learned AR contended that when the assessee is a cooperative society as accepted by the CIT(A) than, the interest earned but not received by the assessee on the loans given to the members cannot be brought to tax by denying deduction u/s 80-P of the IT Act, 1961. In support of his contention he has relied upon the following decisions; 1. ACIT Vs M/s Bangalore Commercial Transport Credit Co-operative Society Ltd. ITA No.1069(B)/2010 dated 08/04/2011 (ITAT, Bench'B' Bangalore. 2. ITO Vs M/s Jankalyan Nagri Sahakari Pat Sanstha Ltd (2012) 24 Taxman.com 129(Pune-Trib.) dated 26/06/2012). 3. DCIT Vs Jayalakshmi Mahila Vividodeshagala Souharda Sahakari Ltd ITA Nos.1 to 3(PNJ) 1012 dated 30/03/2012. 4. CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, Bagalkot ITA No.5006/2013 of the Hon'ble High Court of Karnataka. 5. CIT Vs Nomin Vikas Co-operative Society Ltd. In Tax Appeal No.442 of 2013 of the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embers cannot be given a different colour than the income of interest received by the assessee on the other loans given to the members. Further, merely because, the assessee has not accounted the said interest due on the loan given to the members because of the reason that it was outstanding, the said income would not partake a different character, than the income on the other loans provided to the members and received during the year under consideration. The Hon'ble jurisdictional High Court in the case of CIT Vs Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha (Supra) while dealing with an identical issue of allowability of deduction u/s 80P has held as under; 8.1. The Hon'ble High Court of Karnataka in the case of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, supra which was followed in the cases of General Insurance Employees Co-operative Credit Society Ltd. and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamitha, ITA No.505/2013 dated 27/06/2014, supra, has clearly held that a co-operative society registered as co-operative society, providing credit facilities to members and not registered with the RBI can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t does not possesses any banking licence from the RBI. It is therefore, clear that the appellant's case is squarely covered by the aforesaid decisions of the jurisdictional High Court of Karnataka in the cases of Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha, supra which was followed in the case of General Insurance Employees Co-operative Credit Society Ltd, and Karnataka High Court decision in the case of Vasavi Multipurpose Souharda Sahakari Niyamitha ITA NO.505/2013 dated 7-06-2014, supra. Therefore, in view of the foregoing discussion and respectfully following the aforesaid decisions of the jurisdictional High Court of Karnataka. It is held that the appellant case is not covered by section 80P(4) as it is not a' co-operative bank' and therefore, it is entitled to the exemption u/s 80P(2)(a)(i) of the IT Act . 9. We further note in case of Tumkur Merchants Souharda Credit Co-operative Ltd.(Supra) the Hon'ble jurisdictional High Court has reiterated its earlier view and held in para-9 to 10 as under; 9. In this context when we look at the judgment of the Apex Court in the case of M/s Totgars Co-operative Sale Society Ltd. on which reliance is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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