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TMI Blog2020 (12) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... rchy, as no case is made out that Hon'ble Bombay High Court has reversed any of the decisions. CIT(A) also has refused to follow the discipline of precedence by referring to decision of honourable Karnataka High Court. In this regard as evident from the above said decision of the ITAT [ 2019 (4) TMI 1933 - ITAT MUMBAI] wherein it has been brought out that there is a decision of honourable Karnataka High Court itself in favour of the assessee and there is another decision of honourable Gujarat High Court in favour of assessee on the same issue. In this view of the matter in our considered opinion learned CIT(A) has also committed violation of the judicial discipline by refusing to follow the precedence cited before him on not very cogen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law, the learned CIT(A) erred in not considering the various judgement in respect of S.80P(2)(d) though the same are accepted by the Department and wrongly confirm the additions by disallowing the deduction u/s.80P of the act. (Tax effect ₹ 377,666/-). 4. The appellant craves leave to add, amend, substitute, modify and or cancel any of the Grounds of Appeal.(Total Tax effect ₹ 377,666/-). 3. The issue in dispute is the assessee's claim of interest income earned from deposits in cooperative banks as to whether the same qualifies for deduction under section 80P(2)(d) of the I.T. Act. 4. The assessing officer despite noting that in several decisions the ITAT Mumbai has held that the same was eligible for deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kaliandas Udyog Bhavan Premises Co-op Society Ltd. V ITO (ITANo. 547/Mum/2017 dated 25.4.2018) ITO V.Shree Keshorai Patan Sahakari Sugar Mill (ITA Nos. 418 419/JP/2017 dated 31.1.2018) Pr. CIT Vs. Totagars C-operative Sale Society (392 ITR 74 dated 5.1.2017)(Karnataka) ITO Vs. Eternity Co-op Housing Society Ltd.(ITA No. 6159/M/2017 dated 15.5.2018) 8. Per contra, learned departmental representative relied upon the orders of the authorities below. Upon careful consideration we find that in the case of Ekta Milan Co-op. Housing Society Limited (supra) the ITAT has duly dealt with the decision of honourable High Court referred by the learned CIT(A). We may gainfully refer the same as under :- 7. We have heard the authorised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erived by the cooperative society from its investments with any other co-operative society, the whole of such income. On a perusal of Sec. 80P(2)(d), it can safely be gathered that interest income derived by a co-operative society from its investments held with any other cooperative society shall be eligible for deduction from the total income of the assessee. We may herein observe that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for deduction under Sec.80P(2)(d). In fact, we find that the issue that the interest income derived by a co-operative society from its investments held with a co-operative bank is eligible for deduction under Sec. 80P(2)(d) is covered in favour of the assessee in the following cases: (i) Land and Cooperative Housing Society Ltd. 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. ITO Range- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view taken by 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), as well as the aforesaid orders of the coordinate benches of the tribunal, therein conclude 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 deduction under Sec. 80P(2)(d) of the IT Act. 9. From the above it is amply clear that ITAT has found that in the said decision the honourable Karnataka High Court chose to differ from its own coordinate bench decision which had allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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