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TMI Blog2022 (12) TMI 943X X X X Extracts X X X X X X X X Extracts X X X X ..... contrary views expressed by Tumkur Merchants Souharda Credit Cooperative Ltd. [ 2015 (2) TMI 995 - KARNATAKA HIGH COURT] allowing deduction u/s. 80P on interest income and that of the Hon ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd.[ 2014 (9) TMI 833 - DELHI HIGH COURT] not allowing deduction u/s.80P on interest income earned from banks. Both the Hon ble High Courts took into consideration the ratio laid down in the case of Totgar s Cooperative Sale Society Ltd. [ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT] - No direct judgment from the Hon ble jurisdictional High Court on the point having been pointed out, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit [ 2015 (8) TMI 1085 - ITAT PUNE] p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a)(i) of the Act. The Assessing Officer (AO) observed that the deduction was claimed with reference to interest income amounting to Rs.3,57,44,782/-earned from banks which was not eligible for deduction u/s.80P. He, therefore, dismissed the assesee s claim, which view came to be countenanced in the first appeal. 4. We have heard both the sides and gone through the relevant material on record. The Pune Benches 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and providing credit facility to its members; running stores, rice mills, live stocks, van section, medical shops, lodging, plying and hiring of goods and carriage etc. It was in that background of the facts that the Hon ble High Court held that the assessee could not claim deduction u/s.80P(2)(d) of the Act. When we consider the effect of this decision, it turns out that the same is not germane to case under consideration in view of the position that the primary claim of the extant assessee is directly about the eligibility of deduction u/s.80P(2)(a)(i) of the Act. We, therefore, overturn the impugned order on this score and direct to grant deduction u/s.80P(2)(a)(i) of the Act. 6. In the result, the appeal is allowed. Order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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