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TMI Blog2022 (4) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ve society. In the present case, the reasoning given by the lower authorities for denial of exemption u/s 80P(2)(d) is that interest was received from cooperative bank has no legs to stand as a cooperative bank is also a cooperative society. This issue was considered in the case of CIT vs. Totagars Cooperative Sale Society [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] as referring to case of Totgars Co-operative Sales Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. As from material on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer denied the claim for deduction of exemption of income of ₹ 8,19,601/- being the amount of interest received from other cooperative society i.e. Belgaum District Central Co-op. (BDCC) Bank Ltd. on the ground that income of the cooperative bank is not exempt from the tax u/s 80P(4) of the act. 3. Being aggrieved by the order of assessment, an appeal was filed before the ld. CIT(A), who vide impugned order confirmed the action of the Assessing Officer placing reliance on the decision of the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. vs. ITO, 188 Taxman 282 (SC). 4. Being aggrieved by the above decision of the ld. CIT(A), the appellant is in appeal before us. 5. It is submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Totgars Co-operative Sales Society Ltd. (supra) held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. 8. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 wherein the Tribunal after making reference to the decisions of the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) and having noticed the divergent views of the Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-op. Ltd. vs. ITO, 55 ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the eligibility of deduction u/s.80P(2)(d) of the Act on interest earned by the assessee co-operative society on investments made in co-operative banks. In that case, the assessee was engaged in the activity of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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