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TMI Blog2022 (4) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the source of investment because this section envisages deduction in respect of any income derived by co-operative society from in his investment with a co-operative society. So the Revenue is not required to look another of investment whether it was formed as required within time or otherwise. We have heard the considered of the case of Totagars Co-operative Sales Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] which was relied by the Ld. DR and find that the Hon ble Apex Court has dilapidated 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 Totagars Cooperative Sales Society Ltd [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] 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. We hereby hold that the investment of assessee in cooperative bank is eligible investment u/s 80P(2)(d) of the Act. The interest of the said investment related to Cooperative Society, assessee is eligible for deduction u/s 80P(2)(a)(i) of the Act. Accordingly the appeals of the assessee are allowed. - I.T.A. Nos. 170 & 171/PAN/2018 And I.T.A. No. 181 to 184/PAN/2018 And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iety Ltd, supra. 6. The Ld. DR vehemently argued and relied that the assessee invested in Cooperative Bank and the interest earned from the Cooperative Bank is not eligible u/s 80P(4). Section 80P(4) only restricted investment in the Cooperative Society not in bank. So the order of the Ld. CIT(A) is maintainable. 7. The Ld. counsel further argued that the assessee is registered under Cooperative Society Distt. Belagavi under department of Cooperative, Government of Karnataka bearing certificate no. 10161 dated 29.11.2003. The assessee is eligible for deduction of the interest or dividend derives by its investment which other Co-operative Society also from co-operative bank. It was argued that the assessee has earned interest from Cooperative Bank which are primarily Cooperative society. So, the assessee is rightly eligible for deduction u/s 80P(2)(d). 8. The Ld. AO took the following observations related explanation of section 80P(4) of the Act as per the assessment order page 3 para 5 and 6 which are recasted as under:- 5. Explanation to Section 8OP(4) of the Income-tax Act, 1961 says that the Co-operative Bank and Primary Agricultural Credit Society shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Society- (1) the primary object or principal business of which is the transaction of banking business; (2) the paid up share capital and reserves of which are not less than one lakh of rupees; and (3) the bye-laws of which do not permit admission of any other co-operative society as a member. 9. We heard the rival submissions and perused the material available on record. 10. Having discharge the matter in the issue of section 80P(2)(a)(i), the claim of assessee for deduction is viewed as follows:- 10.1. The Cooperative Bank wherein the assessee deposited out of its surplus funds for earning interest. Then, the only interest was earned by the assessee on the deposit would be eligible for deduction u/s 80P(2)(d). The definition of the Co-operative Society is bought in larger umbrella under which the Cooperative Banks is performed. In this consideration we relied on the catena of judgments which are as follows:- a) In the case of Tumukur Merchants Souhard credit coop limited Vs. The income Tax officer ward-1 Tumkur, [2015] 55 taxmann.com 447 (Karnataka) 10. In the instant case, the amount which was invested in banks to earn interest was not an amount due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments made with the co-operative bank. We thus set aside the order of the lower authorities and conclude that the interest income of ₹ 27,48,553/- earned by the assessee on the investments held with the co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d). d) In the case of Tirupati Campus PH. II CO-OP HOUSING SOCIETY MARYADIT VERSUS THE NCOME TAX OFFICER WARD -7 (4), PUNE (ITAT_Pune) ITA No.1429/PUN/2018, AY-2015-16, Date of Order 28/02/2019. 5. I have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to denial of claim of deduction u/s 80P(2)(d) of the Act. The claim of deduction by the assessee was denied by the AO with respect to the interest income earned from Saraswat Co-operative Bank on the ground that the same is not a Co-operative Society. I find that the Co-ordinate Bench of the Delhi Tribunal in the case of M/s. The Veer Cooperative Group Housing Society Limited (supra) has held that Sarswat Co-operative Bank to be a Co-operative Society and the interest earned therein to be entitled to claim deduction u/s 80P(2)(d) of the Act. I further find that Co-or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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