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TMI Blog2021 (5) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... for deduction under section 80P(2)(d) of the Act or not has not crystallised so far? - HELD THAT:- Coordinate Bench of the Tribunal in the case of Kaliandas Udyog Bhavan Premises Co-op Society Ltd[ 2018 (4) TMI 1678 - ITAT MUMBAI] after considering various decisions by Hon ble High Courts and the Tribunal and the provisions of the Act, has held that interest income derived by a co-operative society from investments with a co-operative bank, would be entitled for deduction under section 80P(2)(d). Following the decision of Totagars Co-operative Sale Society [ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT] and SURAT VANKAR SAHAKARI SANGH LTD [ 2016 (7) TMI 1217 - GUJARAT HIGH COURT] the deduction claimed by the assessee under section 80P(2)(d) of the Act in respect interest derived from investments with the cooperative banks is allowed. We find merit in alternate contention raised by the assessee. Assessee is allowed the benefit of deduction under section 80P(2)(d) on the interest income earned from Cooperative Banks. - ITA NO.4622/MUM/2019, ITA NO.4621/MUM/2019 - - - Dated:- 9-4-2021 - Shri Vikas Awasthy, Judicial Member And Shri S.Rifaur Rahman, Accountant Member For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter insertion of sub-section (4) to section 80P by the Finance Act 2006 w.e.f. 01/04/2007, the benefit of section 80P is not available to Co-operative Banks. Therefore, the assessee neither qualifies for claim of deduction under section 80P(2)(a)(i) nor 80P(2)(d) of the Act. 5. We have heard the submissions made by ld. Departmental Representative and have examined the orders of authorities below. The assessee in appeal has assailed the findings of CIT(A) in not allowing deduction of ₹ 13,46,565/- under section 80P(2)(a)(i) of the Act. Without prejudice to primary contention, the assessee has raised alternate plea for allowing deduction of ₹ 11,45,183/- under section 80P (2)(d) of the Act in respect of interest income on fixed deposits with Co-operative Banks. 6. The assessee during Financial Year 2013-14 has earned interest income as under:- Name of Bank Nature of Investment Interest Earned. (Rs.) Saraswat Co-operative Bank Ltd. Fix Deposits 4,50,000/- Apna Sahakari Bank Ltd. Fix Deposits 6,95,183/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) to (c)** (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other cooperative society, the whole of such income; Thus, from a perusal of the aforesaid Sec. 80P(2)(d) it can safely be gathered that income by way of interest income derived by an assessee co-operative society from its investments held with any other cooperative society, shall be deducted in computing 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 though are in agreement with the observations of the lower authorities that with the insertion of Sub-section (4) of Sec. 80P, vide the Finance Act, 2006, with effect from 01.04.2007, the provisions of Sec. 80P would no more be applicable in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO did not allow such deduction. The ld. CIT(A) overturned the assessment order on this point and granted deduction. The Revenue is aggrieved by such allowing of deduction. 25. We have heard both the sides and gone through the relevant material on record. Relevant part of section 80P reads as under : - 80P. (1) Where, in the case of an assessee being a cooperative 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) to (c) (d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-operative society, the whole of such income; 26. A cursory look of the above provision deciphers that any amount of interest or dividend derived by a Co-operative Society from its investments with any other Cooperative Society, is deductible under clause (d) of section 80P(2) of the Act. The ld. CIT(A) has given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Totagars Co-operative Sale Society (supra) and the decision in the case of Hon'ble Gujarat High Court in the case of Vankar Sahakari Sangh (supra), the deduction claimed by the assessee under section 80P(2)(d) of the Act in respect interest derived from investments with the cooperative banks is allowed. We find merit in alternate contention raised by the assessee. Ergo, the assessee succeeds on ground No.2 of the appeal. 13. In the result, appeal of the assessee is partly allowed. ITA 4621/Mum/2019- A.Y.2015-16 14. The ld. Departmental Representative admitted that the facts in the assessment year 2015-16 are identical to 2014-15, except for the amount of interest earned. 15. We find that in assessment year 2015-16 the relief claimed by the assessee is identical to the one as in assessment year 2014-15. During the period relevant to assessment year 2015-16, the assessee has earned interest income as under: Name of Bank Nature of Investment Interest Earned. (Rs.) Saraswat Co-operative Bank Ltd. Fix Deposits 4,50,000/- A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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