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TMI Blog2014 (9) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... d allowed the claim of deduction u/s.80P(2)(d) for interest received on the deposits with the Aurangabad District Central Cooperative Bank - Decided in favour of assessee - ITA No. 1825/PN/2013 - - - Dated:- 24-9-2014 - Shri Shailendra Kumar Yadav, Judicial Member and Shri R.K. Panda, Accountant Member For the Appellant: Shri Nikhil Pathak For the Respondent: Shri B.C. Malakar ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 09-07-2013 of the CIT(A), Kolhapur relating to Assessment Year 2010-11. 2. Facts of the case, in brief, are that the assessee is a Cooperative Credit Society providing credit facilities to its members. It filed its return of income on 17-08-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the whole of the amount in respect of any income by way of interest or dividends received by the cooperative society from its investments with any other cooperative society is allowable as deduction. However, in the present case, the interest and dividend so received is from the investments made in the Sindhudurg Central Cooperative Bank which is a cooperative bank and not a cooperative society. The Assessing Officer, therefore, asked the assessee to justify and explain as to how the above interest and dividend income qualifies for deduction u/s.80P(2)(d) of the I.T. Act. 3. The submission of the assessee that Sindhudurg Central Cooperative Bank is a cooperative society and therefore the deposits kept with it will be covered under cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) upheld the action of the Assessing Officer. 4. Aggrieved with such order of the CIT(A) the assessee is in appeal before us with the following grounds : The following grounds are taken without prejudice to each other On facts and in law, 1] The learned CIT(A) erred in confirming the addition in respect of interest income of ₹ 31,77,4527- and dividend income of ₹ 5,41,667/- received by the assessee co-operative society on investments made in deposits/ saving bank account and shares of Sindhudurg Central Co-operative Bank. 2] The learned CIT(A) erred in holding that the assessee was not eligible to claim the deduction u/s 80P(2)(a)(i) in respect of the income earned by way of interest on deposits/ saving bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. 6] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal. 5. The Ld. Counsel for the assessee at the outset filed a copy of the decision of the Coordinate Bench of the Tribunal in the case of ACIT Vs. M/s. Janata Grahak Madhyavarti Sahakari Sangh Maryadit vide ITA No.571/PN/2013 order dated 27-11-2013 for A.Y. 2009-10. Referring to the said decision, he submitted that under identical facts and circumstances, the deduction u/s.80P(2)(d) has been allowed on account of interest received on the deposit with Aurangabad District Central Cooperative Bank. He accordingly submitted that this is a covered matter in favour of the assessee. 6. The Ld. Departmental Representative on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Janata Grahak Madhyavarti Sahakari Sangh Maryadit (Supra). We find the Tribunal, following the decision of the Tribunal in the case of Bajaj Auto Ltd. Employees Credit Cooperative Society Ltd. vide ITA No.1047/PN/2012 decided the issue in favour of the assessee and allowed the claim of deduction u/s.80P(2)(d) for interest received on the deposits with the Aurangabad 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Sub-section (4) of Sec. SOP does not change status of Aurangabad District Central Co-operative Bank as a co-operative society which is contemplated in Sec. 80P(1) of the Act. We, therefore, hold that the interest received on the deposit with the Aurangabad District Central Co operative Bank by the assessee on the deposits are squarely covered u/s. 80P(l)(d) and the interest received on deposit kept with the Aurangabad District Central Cooperative Bank is an allowable deduction. So far as the finding of the Ld. CIT(A) 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 Aur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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