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TMI Blog2022 (8) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... rative societies within the meaning of sec. 80P(2)(d) of the Act. Accordingly, he confirmed the order passed by the AO in rejecting the deduction claimed u/s 80P(2)(d) of the Act. Aggrieved, the assessee has filed this appeal. 3. At the time of hearing, the Ld A.R submitted that the co-operative banks also co-operative societies carrying on banking business and hence the interest earned on deposits kept with co-operative banks is to be treated as interest income earned from co-operative societies. Accordingly he contended that the said interest income is exempt u/s 80P(2)(d) of the Act. In support of his contentions, he placed reliance on the following case laws:- (a) Kaliandas Udyog Bhavan Premises Co-op Society Ltd vs. ITO (2018)(94 taxmann.com 15)(Mumbai - Trib.) (b) M/s Vadasinor Pragati Samaj Co-operative Society Ltd vs. PCIT (ITA No.2539/Mum/2019 dated 13-12-2019) (c) Merwanjee Cama Park Co-op Housing Society Ltd vs. ITO (2018)(62 ITR (Trib.) 770)(Mumbai). 4. The Ld D.R. on the contrary, supported the order passed by LdCIT(A). 5. I have heard rival contentions and perused the record. I notice than an identical issue has been adjudicated by the co-ordinate Mumbai b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed view that as long as it is proved that the interest income is being derived by a co-operative society from its investments made with any other co-operative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society' had been defined under Sec. 2(19) of the Act, as under:- '(19) "Co-operative society" means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co-operative societies;' We are of the considered view, that though the co-operative bank pursuant to the insertion of Sub-section (4) of Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but however, as a co-operative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being enforced in any state for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that it was in the backdrop of the aforesaid facts that the Tribunal after carrying out a conjoint reading of Sec. 80P(2)(a)(i) r.w. Sec. 80P(4) had adjudicated the issue before them. We are afraid that the reliance placed by the ld. D.R on the aforesaid order of the Tribunal being distinguishable on facts, thus, would be of no assistance for adjudication of the issue before us. Still further, the reliance placed by the Ld. D.R on the order of the ITAT 'SMC' Bench, Mumbai in the case of Shri SaiDatta Co-operative Credit Society Ltd. (supra), would also not be of any assistance, for the reason that in the said matter the Tribunal had set aside the issue to the file of the assessing officer for fresh examination. That as regards the reliance placed by the ld. D.R on the judgment of the Hon'ble High Court of Karnataka in the case of Totagars co-operative Sale Society (supra), the High Court had concluded that a co-operative society would not be entitled to claim of deduction under Sec. 80P(2)(d). We however find that as held by the Hon'ble High Court of Bombay in the case of K. Subramanian v. Siemens India Ltd. [1983] 15 Taxman 594/[1985] 156 ITR 11 (Bom), where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he was of the view that pursuant to insertion of sub-section (4) of Sec. 80P, the assessee would no more be entitled for claim of deduction under Sec. 80P(2)(d) in respect of the interest income that was earned on the amounts which were parked as investments/deposits with the co-operative bank, other than a Primary Agricultural Credit Society or a Primary Cooperative Agricultural and Rural Development Bank. Observing, that the cooperative banks from where the assessee was in receipt of interest income were not cooperative societies, the Pr. CIT was of the view that the interest income earned on such investments/deposits would not be eligible for deduction under Sec. 80P(2)(d) of the Act. 8. After necessary deliberations, we are unable to persuade ourselves to concur with the view taken by the Pr. CIT. Before proceeding any further, we may herein cull out the relevant extract of the aforesaid statutory provision, viz. Sec. 80P(2)(d), as the same would have a strong bearing on the adjudication of the issue before us. "80P(2)(d) (1) Where in the case of an assessee being a co-operative society, the gross total income includes any income referred to in subsection (2), there shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r law for the time being in force in any state for the registration of co-operative societies;" We are of the considered view, that though the co-operative banks pursuant to the insertion of sub-section (4) to Sec. 80P would no more be entitled for claim of deduction under Sec. 80P of the Act, but as a cooperative bank continues to be a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for claim of deduction under Sec.80P(2)(d) of the Act. 9. In so far the judicial pronouncements that have been relied upon by the ld. A.R are concerned, we find that the issue that a co-operative society would be entitled for claim of deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a co-operative bank is covered in favour of the assessee in the following cases: (i) M/s Solitaire CHS Ltd. vs. Pr. CIT, ITA No. 3155/Mum/2019; dated 29.11.2019 ( ITAT "G" Bench, Mumbai); ..... X X X X Extracts X X X X X X X X Extracts X X X X
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