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TMI Blog2018 (8) TMI 1791X X X X Extracts X X X X X X X X Extracts X X X X ..... eties, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank, would be entitled for claim of deduction under Sec.80P(2)(d) of the Act. As relying on M/S. THE TOTGARS´ COOPERATIVE SALE SOCIETY LIMITED VERSUS INCOME TAX OFFICER. KARNATAKA [2010 (2) TMI 3 - SUPREME COURT] interest income earned by a co-operative society on its investments held with a co- operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. - Decided in favour of assessee. - ITA No.1152/Mum/2018 (Assessment Year 2013-14) - - - Dated:- 9-8-2018 - Shri G.S. Pannu And Shri Pawan Singh, JJ. Appellant by : Shri Mandar Vaidya (AR) Respondent by : Shri S.K. Bepair (Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eded that the grounds of appeal raised by assessee is covered in favour of assessee. 3. We have considered the rival submission of the parties and have gone through the orders of authorities below and the decision cited by ld. AR of the assessee. We have noted that on similar ground of appeal, the co-ordinate bench of Tribunal in Kaliandas Udyog Bhavan Premises Co-op. Society Ltd. (supra) has passed the following order: 6. We have heard the authorized representatives for both the parties, perused the orders of the lower authorities and the material available on record. We find that our indulgence in the present appeal has been sought to adjudicate as to whether the claim of the assessee for deduction under section 80P(2)(d), in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on the adjudication of the issue before us. (1). Where in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. (2). The sums referred to in sub-section (1) shall be the following, namely :- (a)............................................................................................ (b)............................................................................................ (c)............................................................................................ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come is being derived by a co-operative society from its investments made with any other co-operative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term co-operative society had been defined under Sec. 2(19) of the Act, as under:- (19) Co-operative society means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co- operative societies; We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of Sec. 80P would no more be entitled for claim of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016) 389 ITR 578 (Guj), had also held that the interest income earned by the assessee on its investments held with a co-operative bank would be eligible for claim of deduction under Sec. 80P(2)(d) of the Act. Still further, we find that the CBDT Circular No. 14, dated 28.12.2006, as had been relied upon by the ld. A.R, also makes it clear beyond any scope of doubt, that the purpose behind enactment of sub-section (4) of Sec. 80P was to provide that the co- operative banks which are functioning at par with other banks would no more be entitled for claim of deduction under Sec. 80P(4) of the Act. We are of the considered view that the reliance placed by the CIT(A) on the judgment of the Hon‟ble Supreme Court in the case of Totgars Co- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eason that in the said matter the Tribunal had set aside the issue to the file of the assessing officer for fresh examination. That as regards the reliance placed by the ld. D.R on the judgment of the Hon'ble High Court of Karnataka in the case of Pr. CIT Vs. Totagars co-operative Sale Society (2017) 395 ITR 611 (Karn), the High Court had concluded that a co-operative society would not be entitled to claim of deduction under Sec. 80P(2)(d). We however find that as held by the Hon'ble High Court of Bombay in the case of K. Subramanian and Anr. Vs. Siemens India Ltd. and Anr (1985) 156 ITR 11 (Bom), where there is a conflict between the decisions of non-jurisdictional High Court‟s, then a view which is in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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