2016 (9) TMI 1253

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..... arrying on banking business and other co-operative societies. Co-operative banks are primarily ‘co-operative societies’ by constitution and “banks” by the nature of business. The interest income and dividend earned on deposits and investments made with other cooperative banks/society are fully deductible under section 80P(2)(d) from the income liable to tax. See Quepem Urban Co-operative Credit Society Ltd. Versus Assistant Commissioner of Income-tax, Circle-1, Margoa [2015 (6) TMI 573 - BOMBAY HIGH COURT] - Decided in favour of assessee
SHRI N.S. SAINI, HON'BLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HON'BLE JUDICIAL MEMBER Department By : Shri Raviraj Y. V. - DR O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER This is an appeal file .....

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..... ase of Totgar's Co-operative Society. This can't be accepted because the facts are different in this case. The Karnataka High Court in the case of Tumkur Merchants Souhardha Credit Co-operative Society has not only analyzed the facts of Totgars Co-operative Sale Society but also has said as to how the decisions of the Andhra Pradesh High Court referred to above and also that of the Supreme Court's decision in the case of Cambay Electric Supply Industrial Co., are applicable to the facts of the case of the assessee. In this case the assessee is a primary agricultural credit society and mainly engaged in trading activities for its members like purchase and sale of ration goods, fertilizers, kirana items, pesticides, agricultural implements, .....

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..... agala Seva Sahakari Sangha Niyamita, in ITA No.609 and 601(BNG/2014 dated 06/02/2015) it was held that the restrictive interpretation given to co-operative society u/s.80P(2)(d) was not warranted. The ITAT, Bangalore Bench, in this case, through a detailed reasoning, came to the conclusion that the interest and dividend earned by the assessee from co-operative bank was eligible for deduction u/s 80P(2)(d) of the Act. In conclusion it is held that the interest income and dividend earned on deposits and investments made with other cooperative banks/society are fully deductible under section 80P(2)(d) from the income liable to tax." 5. The Departmental Representative relied on the order of the Assessing Officer. He could not point out any sp .....

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