9911796707
TMI Blog2021 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in the above said case, we are of the view that the issue of deduction u/s 80P(2)(a)(i) of the Act requires fresh examination at the end of the A.O. Accordingly, we set aside the order passed by Ld. CIT(A) for the year under consideration and restore them to the file of the A.O. for examining it afresh Deduction u/s 80P(2)(d) - In the case of Karkala Co-op. S. Bank Ltd. [ 2021 (2) TMI 854 - ITAT BANGALORE] the Bangalore bench of Tribunal has considered issue of eligibility of the assessee to claim deduction u/s 80P(2)(d) and it was held that the assessee is eligible for deduction of expenses incurred for earning the interest income. Thus we set aside the order passed by Ld CIT(A) on this issue and restore the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee submitted a revised Statement of Income declaring a Gross Total Income of ₹ 2,17,53,604 and Total Income of Rs Nil, after claiming a Deduction of ₹ 2,17,53,604 under Sec 80P of the Act. 4. The assessee furnished all the details asked for by the learned assessing officer as well as made detailed submissions as to why the deduction u/s 80P should be allowed and how the facts of the following case laws are distinguishable to the facts of the assessee: a. M/s The Totgars' Co-operative Sale Society 08.02.2010 in Civil Appeal No. 1622 of 2010 ; b. M/s. Totagars' Co-operative Sale Society dt 16.06.2017 in ITA No. 100066 of 2016 ; c. M/s Citizen Co-operative Society, Hyderabad dt 08.08.2017 in Civil Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the Hon ble Supreme Court in the case of Citizens Co-operative Society Ltd. Vs. ACIT 397 ITR 1 (SC). Aggrieved by the order of the CIT(A), the assessee has preferred the present appeal before the Tribunal. 9. We have heard the rival submissions. On ground Nos.1 to 5, the Ld. A.R. submitted that the law on deduction of 80P(2)(a)(i) of the Act available to credit co-operative societies has since been settled by Hon'ble Supreme Court in the case of Mavilayi Service Cooperative Bank Ltd. Vs.CIT (2021) 123 taxmarin.com 161 (SC). He submitted that the Hon'ble Supreme Court has held that the expression Members is not defined in the Income-tax Act. Hence, it is necessary to construe the expression Members in section 80P(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it afresh as discussed above. 11. As far as ground Nos.6 to 8 are concerned, we have heard the rival submissions. In the case of Karkala Co-op. S. Bank Ltd. Vs. ITO (ITA No.1288 8r, 1289/Bang/2019 dated 18.2.2021), the Bangalore bench of Tribunal has considered issue of eligibility of the assessee to claim deduction u/s 80P(2)(d) and it was held that the assessee is eligible for deduction of expenses incurred for earning the interest income. The relevant observations made by the Tribunal are extracted below:- 7. The next common issue relates to rejection of deduction claimed u/s 80P(2)(d) of the Act in respect of interest income earned from fixed deposits kept with bank. We noticed earlier that the A.O. has observed in Assessment Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is an income from other sources without allowing deduction in respect of proportionate cost, administrative expenses incurred in respect of such deposits. Accordingly, the Ld. A.R. prayed that the A.O. may be directed to allow deduction of proportionate cost, administrative and other expenses, if the A.O. proposes to assess the interest income earned from bank deposits as income under the head other sources . 9. We heard Ld. D.R. on this issue. We find merit in the prayer of the assessee, since it is supported by the decision rendered by Hon'ble High Court of Karnataka in the case of Totgars Cooperative Sale Society Ltd. Vs. ITO (2015) 58 taxmann.com 35 (Karn). Accordingly, we direct the A.O. to allow deduction of proportionat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
