9911796707
TMI Blog2019 (4) TMI 1933X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has raised before us the following grounds of appeal: "The Appellant is a Co-operative Housing Society, primarily engaged in providing various services to its members for upkeep and maintenance of the society and collecting charges from members for the same. During the relevant previous year, appellant received Rs. 40,720/- as Interest from Shamrao Vithal Co-operative Bank. The Learned Commissioner of Income Tax (Appeals)-46 has erred in holding that appellant was not entitled to benefit of exemption uls 80P (2) (d).The order passed, disallowing claim of the appellant u/s.80P(2)(d) of the Income Tax Act. 1961 of Rs. 40,720/-is ab-initio void, same having been passed in clear contradiction of the binding provisions of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sec.80P. As a result, the A.O declined the assesses claim of deduction under Sec.80P on the interest on FDRs and brought the same to tax under the head "Income from other sources". 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). However, the CIT(A) not being persuaded to subscribe to the contentions advanced by the assessee dismissed the appeal. 5. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. The ld. Authorized Representative (for short "A.R‟) for the assessee submitted that the lower authorities had erred in declining the assesses claim of deduction under Sec.80P(2)(d) insofar the interest income of Rs. 41,792/- on the fixed deposit with the co-op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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)............................................................................................ (d) in respect of any income by way of interest or dividends derived by the coo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e term "Co-operative society‟ had been defined under Sec. 2(19) of the I-T 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 cooperative societies;" As observed hereinabove, though a co-operative bank pursuant to the insertion of sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the I-T Act, however, as a co-operative bank continues to be a co-operative 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... functioning at par with other banks would no more be entitled for claim of deduction under Sec. 80P(4) of the I-T Act. We are of the considered view that the reliance placed by the lower authorities on the judgment of the Hon‟ble Supreme Court in the case of Totgars Co-operative Sale Society Ltd. vs. ITO (2010) 322 ITR 283(S.C) being distinguishable on facts, had thus wrongly been relied upon by them. In fact, the adjudication by the Hon‟ble Apex Court in the aforesaid case was in context of Sec. 80P(2)(a)(i) and not on the entitlement of a co-operative society towards deduction under Sec. 80P(2)(d) on its interest income on the investments parked with a co-operative bank. We thus respectfully following the view taken by the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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