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TMI Blog2018 (3) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue : Ms. Aarju Garodia For The Assessee : Shri Parrati Ganesh ORDER PER R.C.SHARMA (A.M): This is an appeal filed by Revenue against the order of CIT(A)-37, Mumbai dated 15/03/2017 for A.Y.2012-13 in the matter of order passed u/s.143(3) of the IT Act. 2. Only grievance of Revenue relates to allowing claim of deduction u/s.80P to the assessee-co-operative society. 3. Rival contentions have been heard and record perused. 4. Facts in brief are that the assessee is an AOP and is engaged in the business of Co-operative Society. The return of income has e-filed on 12/11/2012 declaring total income of ₹ 34,649/-. The AO has assessed the total income after disallowance of claim u/s.80P(2)(d) of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering al the relevant provisions and facts of the case has come to a conclusion and held that the assesses could not be considered to be a Co-operative Bank for the purpose of sections 80P(4) of the Act. Further, Hon'ble Income tax Appellate Tribunal A Bench, Mumbai in the case of Lands End Co-operative Housing Society Ltd. vs ITO, in ITA No. 3566/Mum/2014 has the provisos of section 80P(2)(d) of the act provides for deduction in respect of income of a co-operative society by way of invest for dividend from its investments with other co-op society if such income is included in the gross total income of the such co-op society. In view of these facts and circumstances we are of the considered view that the assessee is entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for claiming u/s 80P(2)(d) it must have income of interest and dividend on investments with other Co-operative society may or may not be engaged in the banking for providing credit facilities to its members and the head under which the income is assessable is not material for the claim of deduction under this section. The provisions of section 80(P)(2)(d) of the Act provides for deduction in respect of income of a co-op society by way of interest or dividend from its investments [Q\ with other co-op society if such income is included in the gross total income of the such Co-op society. In view these facts and circumstances we are of the considered view that the assessee is entitled to the deduction of ₹ 14,88,107/- in respect of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that Bombay Mercantile Cooperative Bank is a cooperative society registered under Maharashtra Cooperative Societies Act and we further find that the said society has been assessed u/s 143(3) as a cooperative society and its income was allowed to be exempt u/s SOP(2) (i) as held by Mumbai Tribunal in I. T.A. No. 4128 and 4129 vide its order dated 30.11.2005, for Assessment Year 1990-91 and 1991-92 and further by Mumbai Tribunal vide order dated 07.09.2011 in I.T.A. No. 5292 for Assessment Year 1997-98. Therefore it is held that fixed deposits placed with Bombay Mercantile Bank falls within the exemption granted by Section 80P(2)(d) of the Act. The assessee was also eligible under the provisions of Section 80P(2)a(i) as the funds place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ift Credit Society Ltd. A Cooperative Bank is always registered under the relevant Co-operative Societies Act of the relevant State. However, during the appellate proceedings, appellant has submitted that the claim of deduction u/s.80P has been accepted in the subsequent year and no addition on the above ground has been made in the AY 2013-14 and AY 2014-15 In view of above, the appellant is entitled to claim of deduction u/s 80P of the Act, therefore, AO is directed to allow ₹ 42,57,348/- as deduction u/s.80P of the Act. This ground of appeal is allowed. 6. I have gone through the orders of the authorities below. It is clear from the order of CIT(A) that after applying judicial pronouncements, as laid down by Hon ble Bombay Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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