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TMI Blog2021 (6) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the interest income which is taxable under the head income from other sources as per Section 56. Thus addition is hereby deleted. - Bhavnesh Saini, Member (J) And Dr. B.R.R. Kumar, Member (A) For the Appellant : K.P. Garg, Adv. For the Respondents : Ajay Kumar, Sr. DR ORDER Dr. B.R.R. Kumar, Member (A) 1. These appeals have been filed by the assessee against the orders of the ld. CIT(A)-18, New Delhi dated 17.05.2018 and 18.05.2018. 2. Since, the issues involved in all these appeals are common, they were heard together. 3. In ITA No. 4833/Del/2018, following grounds have been raised by the assessee: 1. The learned CIT(A) has erred on facts and in law in upholding the impugned order of the learned assessing officer which is contrary t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties and perused the material available on record. 15. Having decided the matter in the issue of Section 80P(2)(a)(i), the claim of the assessee for deduction u/s. 80P(2)(d) is viewed de novo. 16. We have given a thought to consider whether the co-operative bank wherein the assessee made deposits out of this surplus fund be considered as a co-operative society, for if a co-operative bank is considered to be a co-operative society than only the interest earned by the assessee on the deposits would be eligible for deduction u/s. 80P(2)(d). We find that co-operative society is a broad and larger umbrella under which the co-operative banks do perform. All co-operative societies may not be banks but all co-operative banks are deemed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. DR and find that the Hon'ble Supreme Court has deliberated on the issue of deduction u/s. 80P(2)(a)(i) but not on Section 80P(2)(d). We also observed that in the case of Totgars Co-operative Sale Society Ltd. itself the Hon'ble High Court of Karnataka has allowed the claim of deduction u/s. 80P(2)(d) vide order dated 05.01.2017. 20. Hence, keeping in view the provisions of the Act and the judgments of the Hon'ble High Court and Supreme Court in the case of Totgars Co-operative Sale Society Ltd., we hereby hold that the assessee is eligible for deduction u/s. 80P(2)(d) on the income earned by the way of interest from the co-operative societies. Expenditure-u/s. 57: 21. The assessee has taken a plea that the expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount payable by the employer to a person belonging to the family of an employee in the event of his death;] (iii) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income; [(iv) in the case of income of the nature referred to in clause (viii) of sub-section (2) of section 56, a deduction of a sum equal to fifty per cent of such income and no deduction shall be allowed under any other clause of this section.] 22. Having heard the arguments, we hereby direct that the Assessing Officer shall allow the expenditure incurred in relation to earning of interest from the commercial banks. 23. In conclusion, a. The assessee being a co-operative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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