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TMI Blog2023 (2) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... - SUPREME COURT] has categorically mentioned in paragraph no.35 that interest or dividend income derived from Co-operative Society from investments with other Co-operative Society are entitled to deduct the whole of such income, but in earlier paragraph i.e. paragraph no.33 it has clearly stated/held that facilities given to non-members cannot be said to be attributable to the activity of providing credit facilities to its members, such amount cannot be deducted. Thus, in the entirety of the decision of the Hon ble Apex Court it has categorically differentiated the investments done in Co-operative Societies and non-co-operative Societies/non-members. In the present case, the SSNL Limited are not Co-operative Society or member as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Totgar Co-op Sale Society Limited case is not applicable on the facts of the case. 4 The learned AO has erred in not following CIT(A) order for AY 2009-10 in which the interest from SSNNL is treated as business income and is allowed as deduction under Section 80P(2)(a)(i) by following ITAT order in case of Jafari Momin Vikas Co-op Credit Society Limited which has distinguished Totagr case and that no revenue appeal is filed before the ITAT. 3. The assessee is a Co-operative Society providing credit facilities to its members. The original assessment for A.Y. 2013-14 was completed under Section 143(3) of the Income Tax Act, 1961 on 23.04.2015 determining total income at Rs.11,250/-. The Assessing Officer observed that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own case for A.Y. 2009-10. The Revenue did not prefer any appeal to the High Court and, therefore, there is no escapement of income and thus reassessment itself is bad in law. The Ld. AR relied upon the decision of Ahmedabad Tribunal Special Bench in case of ACIT vs. Peoples Co-op Credit Society Limited (2019) 107 taxmann.com 53 wherein it was held that income of co-operative societies are applicable for deduction under Section 80P(2)(a)(i). The Ld. AR relied upon Hon ble Gujarat High Court in the case of PCIT vs. Ekta Co-operative Credit Society Limited 402 ITR 85 (Guj) and CIT vs. Jafari Momin Vikas Co-operative Credit Society Limited, 362 ITR 311 (Guj). Ld. AR further relied upon the decision of Hon ble Apex Court in case of Mavilayi Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urplus funds of the assessee society. The decisions cited by the Ld. AR in respect of Hon ble Apex Court in the case of Mavilayi Service Co-operative Bank Limited and others has categorically mentioned in paragraph no.35 that interest or dividend income derived from Co-operative Society from investments with other Co-operative Society are entitled to deduct the whole of such income, but in earlier paragraph i.e. paragraph no.33 it has clearly stated/held that facilities given to non-members cannot be said to be attributable to the activity of providing credit facilities to its members, such amount cannot be deducted. Thus, in the entirety of the decision of the Hon ble Apex Court it has categorically differentiated the investments done in C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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