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TMI Blog2022 (10) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... operative credit societies/cooperative banks which has different setup altogether where deduction under Section 80P(2)(a)(i) of the Act is allowable when the interest is derived from credit provided to its members. The same cannot be equated with Nationalised Bank which has dealt by the Apex Court. In the present case the assessee society had received interest income from co-operative banks only and the assessee is a credit society and funds received from its members only thus the deduction is properly claimed by the assessee. The decision of Hon ble Gujarat High Court [ 2016 (7) TMI 516 - GUJARAT HIGH COURT] and the ratio laid down by the Hon ble Jurisdictional High Court is applicable in assessee s case. In fact, the decision of Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the interest earned u/s.80P(2)(d) of the Act to the tune of Rs.16,02,299/-. Ii) On the facts and circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) ought to have upheld the order of the Assessing Officer. iii) It is, therefore prayed that the order of the Ld. Commissioner of Income Tax (Appeals) may be set aside and that of the Assessing Officer be restored. 3. The assessee is a Co-operative Society and filed its return of income on 30.09.2014 declaring total income at Rs.1,89,56,840/- for A.Y. 2014-15. The Assessing Officer observed that the deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961 of Rs.2,55,842/- being interest income received from Cooperative Bank is not eligible. The PCIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chemicals Limited (227 ITR 414). 6. The Ld. AR submitted that the Hon ble Jurisdictional High Court in the case of State Bank of India (SBI) vs.CIT, 389 ITR 578 clearly held that in case of Society engaged in providing credit facilities to its members, it is only interest derived from credit provided to its members which is deductible under Section 80P(2)(a)(i) of the Act. Thus, the Ld. AR submitted that the CIT(A) rightly allowed the appeal of the assessee. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the decision of Hon ble Apex Court in the case of Totgars Co-operative Sale Society Limited (supra) the issue was related to interest income earned from Natio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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