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TMI Blog2022 (12) TMI 1318X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as deduction u/s 80P(2)(d) - Appeal of assessee allowed. - I.T.A.Nos.220 And 221/PAN/2019 - - - Dated:- 27-12-2022 - Shri Satbeer Singh Godara, Judicial Member For the Assessee : Shri S.J. Kamat For the Revenue : Smt. Neelima Nadkarni, Sr.DR ORDER These assessee s twin appeals for Assessment Years 2013-14 2014-15 are directed against the Commissioner of Income Tax (Appeals), Panaji-1, Panaji s common orders dated 15.03.2019 passed in case No. CIT(A), PNJ-1/10451/2017-18 [for the A.Y. 2013-14] and in case No.CIT(A), PNJ-1/10475/2017-18 [for the A.Y. 2014-15] respectively, in proceedings u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 [in short the Act ]. 2. Heard both the parties. Case files perused. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. The solitary issue in the present appeal relates to the eligibility of exemption of income received from cooperative banks under the provisions of section 80P(2)(d) of the Act. The Assessing Officer as well as the ld. CIT(A) was of the opinion that the same does not call for exemption u/s 80P(2)(d) of the Act as they were received from a cooperative bank. The reasoning of the lower authorities cannot be sustained in the eyes of law as the cooperative banks also the spies of the cooperative societies and continue to be cooperative society despite the fact that they enjoy the licence from Reserve Bank of India to carry out the business of the banking. Then the issue that comes up for consideration is that whether the cooperative banks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity 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, dated 19-8-2015) 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 u/s.80P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 cooperative banks. 7. In the light of the above legal position, we hold that the interest income earned by the appellant society on investment made with the cooperative bank which are also cooperative societies is exempt from the Income Tax Act u/s 80P(2)(d) of the Act. Therefore, we hold that the lower authorities was not justified in denying the claim of deduction u/s 80P(2)(d) of the Act. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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