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TMI Blog2018 (12) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer to allow deduction u/s 80P(2)(d) of the Act in respect of interest earned by the assessee from the deposits kept with Co-operative Banks. - decided in favour of assessee - ITA No.5741/Mum/2018 - - - Dated:- 3-12-2018 - Shri B.R.Baskaran, AM and Shri Amarjit Singh, JM For the Appellant : S/Shri Vijayrao Tambe Bharat Kumar For the Respondent : Shri Chaudhary Arunkumar, Sr.DR ORDER PER B.R.BASKARAN (AM) : The appeal filed by the assessee is directed against the order dated 28.8.2018 passed by the learned CIT(A)-28, Mumbai and it relates to Asst.Year 2014-2015. 2. The solitary issue raised in this appeal is whether the learned CIT(A) was justified in confirming the rejection of claim for deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Himachal Pradesh has also considered an identical issue and has taken its view in favour of the assessee in the case of CIT v. Kangra Co-operative Bank Ltd. (309 ITR 106). Accordingly, the Tribunal by following the decision rendered in the case of Kangra Co-operative Bank Ltd. (supra) has held that the interest income earned on deposits kept with Cooperative Banks would be eligible for deduction u/s 80P(2)(d) of the Act by following the principles laid down by the Hon'ble Supreme Court in the case of Vegetable Products Ltd. (88 ITR 192). The learned AR also submitted that an identical issue was considered by the Co-ordinate Bench in the case of M/s Sea Grean Co-operative Housing Society Ltd. v. ITO [ITA No.1343/Mum/2017 dated 31.03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Mumbai Tribunal in the case of Lands End Co-operative Housing Society Ltd. (supra) is rendered under identical circumstances and the following discussion is relevant:- 8.3 We have heard the rival submissions and perused the material on record. We find that the CIT(A) enhanced the income of the assessee by rejecting the deduction u/s 80P(2)(d) of the Act of ₹ 14,88,107/- being interest on investment with other Coop. banks by following the decision in the case of Bandra Samruddihi Cooperative Housing Society Ltd.(Supra) which was passed on the basis of the decision passed by the Hon ble Supreme Court in the case of Totagar s Cooperative Sale Society Ltd. In the case of Totagar s Co-operative Sale Society Ltd v/s ITAT (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit facilities to its members. The whole of the amount of profits and gains of business attributable to any one or more of much attributes. (d)In respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income. From the close perusal of the provisions of u/s 80P(2)(a)(i) and 80P(2)(d) it is clear that the former deals with deduction in respect of profits and gain of business in case of the co-operative society carrying on business of banking or providing credit facilities to its members if the said income is assessable as income from business whereas latter provides for deduction in respect of income by way interest and divide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act provides for deduction in respect of income of a coop society by way of interest or dividend from its investments with other coop society if such income is included in the gross total income of the such coop 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 interest received/derived by it on deposits with coop. banks and therefore the appeal of the assessee is allowed by reversing the order of the CIT(A). The AO is directed accordingly. 5.1 It is clear that the Tribunal in the case of Lands End Cooperative Housing Society Ltd. (supra) has considered a similar situation and allowed the claim of the assessee. We find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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