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TMI Blog2022 (8) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... President And Partha Sarathi Chaudhury, JM For the Appellant : Shri Pramod Shingte For the Respondent : Shri Arvind Desai ORDER PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the order of the ld. CIT(A)-National Faceless Appeal Centre, Delhi dated 25-08-2021 for A.Y. 2019-20 as per the grounds of appeal on record. 2. The solitary grievance of the assessee before us is the denial of deduction u/s 80P(2)(a)(i) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) even though the assessee qualifies for deduction being a registered co-operative society vis- -vis in providing credit facilities to its members. There are several decisions of the co-ordinate Bench Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with and subject to the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee. Sub-section (2) opening with: `The sums referred to in sub-section (1) shall be the following , has clauses (a) to (f). Clause (d), which has been invoked by the ld. Pr. CIT reads: `(d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income. It is axiomatic that only interest derived by a co-operative society from its investments with any other co-operative society is eligible for deduction under clause (d). Conversely, if the payer of the interest is not a co-operative society, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such business. So long as there exists a live link, not necessarily direct, between the income and carrying on of the business of providing credit facilities, the resultant income qualifies for deduction. If a particular amount is received by a co-operative society from its members as deposits and a part of the same has been provided as a credit facility to its members, the unspent amount for the time being not required by the members as loan, if utilised elsewhere, will nonetheless lead to generation of profits and gains of business of providing credit facilities to its members. The thread of link between income and business of providing credit facilities to the members will be broken if despite there being the members wanting to avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hes of the Tribunal in Sureshdada Jain Nagari Sahakari Patsanstha Maryadit Vs. The Pr.CIT (ITA No.713/PUN/2016) decided the question of availability of deduction u/s 80P on interest income by noticing that the Pune Bench in an earlier case of Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit Vs. ITO (ITA No.604/PN/2014) has allowed similar deduction. In the said case, the Tribunal discussed the contrary views expressed by the Hon ble Karnataka High Court in Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 Taxman 309 (Kar.) allowing deduction u/s. 80P on interest income and that of the Hon ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant assessee is directly about the eligibility of deduction u/s.80P(2)(a)(i) of the Act and not u/s.80P(2)(d). Moreover, so many decisions relied on by the ld. AR amply go to prove that the view taken by the AO, cannot by any standard, be construed as not a possible view. We, therefore, hold that the ld. Pr. CIT was not justified in exercising the revisional power anent to interest income of Rs.22,34,270/- earned on investments made with co-operative banks. 11. Now we advert to the second issue espoused by the ld. Pr. CIT about the interest income of Rs.2,334/- received by the assessee on refunds u/s.244A of the Act. We find that this issue is fully and directly covered by the Special Bench order passed by the Mumbai benches of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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