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TMI Blog2019 (4) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... est earned therein to be entitled to claim deduction u/s 80P(2)(d). After relying on the decision in the case of Kaliandas Udyog Bhavan Premises Cooperative Society Ltd., (2018 (4) TMI 1678 - ITAT MUMBAI) has held that the interest earned on investments held with the Co-operative Banks would be eligible for deduction u/s 80P(2)(d). Revenue has not pointed out any contrary binding decision nor has placed on record any material to demonstrate that the aforesaid decisions have been set aside/ stayed/over-ruled by any higher Judicial Forum. Following the aforesaid decisions, hold interest income earned by the assessee on the deposits held with Banks would be eligible for deduction u/s 80P(2)(d) - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... governed by Multi State Cooperative Societies Act 2002 and also is governed by the provisions of the Banking Regulation Act as applicable to the Cooperative Societies as it is a cooperative society carrying on banking business. 3. The Ld. CIT(A) has not allowed the claim for proportionate expenses to be set off against the taxable (interest received) and exempted income (maintenance charges collected from members exempted under mutuality concept)." 3. During the course of assessment proceedings, on perusing the Profit and Loss account, AO noticed that assessee had earned interest income of ₹ 16,85,525/- on the deposits held with Saraswat Co-operative Bank, TJSB Bank, Cosmos Banks and IDBI Bank, which was claimed as deduction u/s 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. (supra) but has used it to buttress his stand. The Assessing Officer has clearly arrived at the conclusion that, the interest earned from the Co-operative bank did not fall under the purview of "Co-operative Society" for the reasons mentioned in the assessment order and as stated above. The interest is earned not only from Co-operative banks but also from other Nationalized and private banks. Therefore, the case under consideration is also distinguishable from both the decisions of Hon'ble ITAT Mumbai (supra) relied upon by the appellant. In both the cases the interest earned is from other Co-operative Societies. In view of this, the contention of the Appellant lacks strength and is therefore, dismissed. Accordingly, Ground No.1 is dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The issue in the present ground is with respect to denial of claim of deduction u/s 80P(2)(d) of the Act. The claim of deduction by the assessee was denied by the AO with respect to the interest income earned from Saraswat Co-operative Bank on the ground that the same is not a Co-operative Society. I find that the Co-ordinate Bench of the Delhi Tribunal in the case of M/s. The Veer Cooperative Group Housing Society Limited (supra) has held that Sarswat Co-operative Bank to be a Co-operative Society and the interest earned therein to be entitled to claim deduction u/s 80P(2)(d) of the Act. I further find that Co-ordinate Bench of the Mumbai Tribunal in the case of Lady Ratan Tower Cooperative Housing Society Ltd., (supra) and after rely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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