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TMI Blog2019 (4) TMI 1933X X X X Extracts X X X X X X X X Extracts X X X X ..... e for claim of deduction under Sec.80P(2)(d) of the Act. We are unable to persuade ourselves to be in agreement with the view taken by the lower authorities that the assessee would not be entitled for claim of deduction under Sec. 80P(2)(d), in respect of the interest income on the investments made with the co-operative bank. - Appeal of Revenue is dismissed. - ITA No.3867/Mum/2018 - - - Dated:- 30-4-2019 - Shri Shamim Yahya, Accountant Member And Shri Ravish Sood, Judicial Member For the Appellant : Shri Ashok H. Sagar, A.R For the Respondent : Shri Chaitnya Anjaria, D.R ORDER PER RAVISH SOOD, JM The present appeal filed by the assessee is directed against the order passed by the CIT(A)-46, Mumbai, dated 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uently, the case of the assessee was selected for scrutiny assessment under Sec. 143(2). 3. During the course of the assessment proceedings it was observed by the A.O that the assessee society had earned interest income of ₹ 2,16,190/- on its FDR‟s held with two banks viz. (i) Shamrao Vithal Coop Bank Ltd. (₹ 41,792/-) ; and (ii) Corporation Bank Ltd. (₹ 2,16,190/-). The A.O held a conviction that as the interest income earned by the assessee on its aforesaid investments was not from its activities of a co-operative credit society for which it was formed, thus the same was liable to be brought to tax under the head Income from other sources . On the basis of his aforesaid deliberations the A.O relying on the judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Premises Co-op Society Ltd. Vs. ITO (ITA No. 6547/Mum/2017, dated 25.04.2018). 6. Per contra, the ld. Departmental Representative (for short D.R‟) relied on the orders of the lower authorities. 7. We have heard the authorised representatives for both the parties, perused the orders of the lower authorities and the material available on record and judicial pronouncements relied upon by them. 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 respect of interest income earned from the investments made with the cooperative bank is in order, or not. We have deliberated at length on the issue under consideration and are u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the investments made by the assessee co-operative society with any other co-operative society. We are of the considered view that though with the insertion of sub-section (4) of Sec. 80P, vide the Finance Act 2006, w.e.f from 01.04.2007, the provisions of Sec. 80P would no more be applicable in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, however, the same would in no way jeopardise the claim of deduction of a co-operative society under Sec. 80P(2)(d) insofar its interest income on investments made with a co-operative bank is concerned. We have given a thoughtful consideration to the issue before us and are of the considered view that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Vs. ITO (2017) 46 CCH 52 (Mum) (ii) M/s Sea Green Cooperative Housing and Society Ltd. Vs. ITO-21(3)(2), Mumbai (ITA No. 1343/Mum/2017, dated 31.03.2017 (iii) Marvwanjee Cama Park Cooperative Housing Society Ltd. Vs. ITORange- 20(2)(2), Mumbai (ITA No. 6139/Mum/2014, dated 27.09.2017. Apart there from, we find that the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon‟ble High Court of Gujarat in the case of State Bank of India Vs. CIT (2016) 389 ITR 578 (Guj), had also held that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of deduction under Sec. 80P(2)(d) of the I-T Act. 8. We thus in the backdrop of our aforesaid observations are unable to persuade ourselves to be in agreement with the view taken by the lower authorities that the assessee would not be entitled for claim of deduction under Sec. 80P(2)(d) insofar the interest income of ₹ 41,792/- on the FDR held with Shamrao Vithal Co-operative Bank is concerned. In terms of our aforesaid deliberations, we set aside the order of the lower authorities and conclude that the interest income of ₹ 41,792/- earned by the assessee on its investment with the aforesaid co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d). 9. The appeal of the assessee is allowed in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X
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