9911796707
TMI Blog2020 (12) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... t the facts and circumstances of the case. 2. That the learned Commissioner Income Tax (Appeals) erred in law and on facts in not allowing the deduction of Rs. 64,40,358/- claimed u/s. 80P(2)(a)(i) on the ground that the appellant is not a Co-operative Society. 3. That the learned Commissioner Income Tax (Appeals) erred in law and on facts in holding that the appellant is registered under the Karnataka Souhardha Act, 1997 therefore, not a Co-operative society and not eligible for deduction u/s. 80P(2)(a)(i) of the Act. 4. That the learned lower authorities erred in law and on facts in not allowing the interest income as deduction uls 80P(2)(a)(i) of the Act even though the investments were made out of surplus fund and attributable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in case of Pr. CIT vs Totgars Co-operative Sale society reported in 395 ITR 611. 4. Ld. AO also noted that assessee is registered as co-operative under Karnataka Souhardha Co-operative Act 1997 and not under Karnataka Co-operative Societies Act 1959. Ld. AO thus held that assessee is not a co-operative society and hence was not eligible for claim of deduction under section 80 P of the Act. He placed reliance on decision of coordinate bench of this Tribunal in case of M/s. Udaya Souhardha Credit Co-operative Society Ltd., dated 17/08/2018. 5. Ld. AO thus denied, entire deduction claimed by assessee under section 80 P and added back to the income of assessee. 6. Aggrieved by order of Ld. AO, assessee preferred appeal before Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however submitted that, assessee is registered even under Karnataka co-operative societies act 1959. He placed reliance on the certificate placed at page 3 and 4 of paper book filed before us today. 11. In respect of interest income received from deposits made in nationalised/co-operative banks, Ld. AR submitted that the issue needs to be considered afresh, as previous decision in case of Pr. CIT vs Totgars co-operative Sale Society reported in 392 ITR 74 by Hon'ble Karnataka High Court has not been followed in the subsequent decision relied by authorities below to deny assessee's claim. 12. On the contrary, the Ld. Sr. DR placed reliance on orders passed by authorities below. 13. We have perused submissions advanced by both sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) (a) (i) of the act. 16. Ld. AR before us has placed reliance on following decisions by coordinate bench of this Tribunal wherein, the issue was restored to Ld. AO for fresh consideration: * Nagpur Credit Co-operative Society vs ITO in ITA No. 2405/Bang/2019 by order dated 31/08/2020; * Banashankari Credit Co-operative Society Ltd. vs ITO in ITA No. 2874/be/2017 by order dated 12/03/2018 17. This Tribunal observed as under: "10. We have heard the rival submissions and we find that there are contrary judgments of Hon'ble High Court of Karnataka on this issue. This aspect has been discussed by the ITAT "A" Bench in ITA No. 3389 & 3390/Bang/2019 in the case of The Jayangar Co-operative Society Ltd. V./TO, order dated 07.02.2020 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08 to 2011-12 investments and deposits after the Supreme Court's decision against the assessee Totgar's Co-operative Sale Society Ltd. (supra), were shifted from Schedule Banks to Cooperative Bank. U/s. 80P(2)(d) of the Act, income by way of interest or dividends derived by a Co-operative Society from its investments with any other Cooperative Society is entitled to deduction of the whole of such interest or dividend income. The claim of the Assessee was that Co-operative Bank is essentially a Co-operative Society and therefore deduction has to be allowed under Clause (d) of Sec. 80P(2) of the Act. The Hon'ble Karnataka High Court followed the decision of the supreme Court in The Totgars Co-operative Sales Society Ltd. (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -operative Ltd. (supra). Respectfully following this Tribunal order, in the present case also. we restore the matter back to the file of AO for fresh decision, after examining the facts of the present case in the light of these two judgments after providing adequate opportunity of being heard to the assessee." 11. We also find that the Hon'ble High Court of Karnataka in the case of Pr. CIT v. Totgars Co-operative Sales Society, 392 ITR 74 (Karn) confirmed the order of Tribunal allowing deduction u/s. 80P(2)(d) of the Act on interest received from investments made in co-operative bank. This decision was, however, not followed in a subsequent DB judgment in the case of Pr. CIT v. Totgars Co-operative Sales Society, 395 ITR 611 [Karn]. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
