9911796707
TMI Blog2017 (3) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Menasi Seemeya Group Gramagala Seva Sahakari Sangha Niyamita [2015 (2) TMI 1094 - ITAT BANGALORE ] it was held that the restrictive interpretation given to co-operative society u/ s. 80P(2) (d) was ·not warranted. The ITAT B'lore Bench in this case through a detailed reasoning came to conclusion that the interest and dividend earned by the appellant from co-operative bank was eligible for deduction u/ s. 80P(2) (d) of the Act. Thus held that the interest income earned on deposits made with other co-operative banks/society are fully deductible u/s. 80P(2)(a)(i) from the income liable to tax though the assessee has claimed the same as exempt u/ s. 80P(2) (d) and the same is also exempt u/ s. 80P(2)(d) as stated above. - Decided in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring of the appeal. 2. During the course of hearing, the ld. counsel for the assessee has invited our attention to the fact that the impugned issue is squarely covered by the judgment of jurisdictional High Court in the case of CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot, 369 ITR 86 (Kar) and Tumkur Merchants Souharda Credit Co-operative Ltd. v ITO (ITA No.307 of 2014 dated 28.10.2014). This issue is also covered by the following orders of the Tribunal of Bangalore Bench:- 1. Menasi Group Gramagala Seva Sahakari Sangha Nyt v. CIT (ITA Nos. 609 610/Bang/2014 2. The Jamkhandi Minority Credit Co-op. Society Ltd. v. ITO (ITA No.958/Bang/2014) 3. The Adil Amanat Co-op. Society Ltd. v. ITO (ITA No.288 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the CIT(Appeals) and relied upon the various judgments of different High Courts and the Tribunal. The CIT(Appeals) re-examined the issue in the light of judgments referred to before him and following his earlier order, has allowed the deduction and deleted the addition. The relevant observations of the CIT(Appeals) is extracted hereunder for the sake of reference:- 5. I have gone through the assessment orders, grounds of appeal for all the three assessment years and the written submissions made and discussion with the assessee's representative is held. 6. For all the three assessment years, the AO has in detail, touched upon the issue as to how the co-operative society is a cooperative bank by taking recourse to sec. 2(24)(vii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of sec. 80P which are short listed as below. 8OP (2) (d) . .... In the case of co-operative society engaged in, I. Carrying on business of banking or providing credit facilities to its members or. II. -------------------------- or III. ---------------------------- or IV. ---------------------------- or V. ---------------------------- or VI. ---------------------------- or VII. ---------------------------- or The whole of the amount of profits and gains attributable to anyone or more of such activities ............. The word attributable to used in the said section is of great importance. 9. From the above discussion, the whole gamut of provisions of sec. 80P2(a)(i), 80P(2)(d) and the vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipts from sources other than the actual conduct of the business, as held by the Supreme Court in the case of Cambay Electric Supply Industrial Co. Ltd., Vs. CIT Gujrat -II reported in 113 ITR (1978) 842 page 93. Without prejudice to the above findings that the interest income from deposits are eligible for deduction u/ s. 80P(Z) (a) (i), it is to be noticed that the interest earned on deposits with co-operative banks would be eligible for deduction u/ s. 80P(2)(d) of the Act. Sec. 80P(2) (d) says: Interest or dividend in respect of any income by way of \ deposit with any cooperative society from its investments with any other co-operative society, the whole of such income is eligible for deduction. 10. As per sec. 2(19) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby deleted. 6. It is also brought to our notice that the issue is also squarely covered by the judgment of jurisdictional High Court in the case of CIT v. Sri Biluru Gurubasava Pattina Sahakari Sangha Niyamitha Bagalkot, 369 ITR 86 (Kar) as well as in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. v ITO (ITA No.307 of 2014 dated 28.10.2014) and other orders of the Tribunal referred to in the foregoing paragraphs. In the light of these judicial pronouncements, we are of the considered view that the CIT(Appeals) has rightly adjudicated the issue and we find no infirmity therein because filing of SLP does not amount to stay of operation of the order of the Hon ble High Court. Therefore, we are supposed to follow the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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