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TMI Blog2023 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... t even the interest earned from the co-operative banks are allowable as deduction u/s 80P(2)(d). As regards the decision of in Mavilayi Service Co-operative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT] on which reliance has been placed by the learned CIT(A) as well as by the DR, we find that the said decision only clarifies the aspect that section 80P(4) is a proviso to the main provision and excludes only co-operative banks, which are co-operative societies and also possesses a licence from RBI to do banking business - we are of the considered view that the aforesaid decision is of relevance only in a case where the assessee, who is a co-operative bank, claims a deduction u/s 80P of the Act - such is not the facts of the present case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt craves leave to add, amend, modify or delete any grounds of appeal. 3. The brief facts of the case are: The assessee is a society registered under Maharashtra Co-operative Societies Act, 1960 carrying on the credit business. Its business involves accepting deposits from members and advancing credit facility to them. Any amount which could not be advanced to members, out of deposits and accumulated profit and reserves, has to be invested as per the guidelines issued by Maharashtra Co-operative Societies Act and rules framed thereunder. During the year under consideration, the assessee filed its return of income on 27/09/2018, declaring income at Rs.Nil, after claiming deduction under Chapter-VIA of the Act. The entire income of Rs.4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank. Being aggrieved, the assessee is in appeal before us. 5. We have considered the submissions of both sides and perused the material available on record. The only grievance of the assessee is against the denial of deduction under section 80P(2)(d) of the Act in respect of interest income received from various co-operative banks. As per the provisions of section 80P(1) of the Act, the income referred to in sub-section (2) to section 80P shall be allowed as deduction to an assessee being a co-operative society. Further, section 80P(2)(d) of the Act, reads as under: 80P. Deduction in respect of income of co-operative societies. (1) ...... (2) The sums referred to in sub-section (1) shall be the following, namely: (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-operative banks and earned interest, which was claimed as deduction under section 80P(2)(d) of the Act. The Revenue denied the deduction under section 80P(2)(d) of the Act on the basis that the interest income earned from co-operative bank is not covered under the aforesaid provisions and the said provision only grants deduction in respect of interest earned from co-operative society. In this regard, it is pertinent to note that all co-operative banks are co-operative societies but vice versa is not true. We find that the coordinate benches of the Tribunal have consistently taken a view in favour of the assessee and held that even the interest earned from the co-operative banks are allowable as deduction under section 80P(2)(d) of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue before us and are of the considered view that as long as it is proved that the interest income is being derived by a co-operative society from its investments made with any other co-operative society, the claim of deduction under the aforesaid statutory provision, viz. Sec. 80P(2)(d) would be duly available. We may herein observe that the term 'co-operative society' had been defined under Sec. 2(19) of the Act, as under: '(19) Co-operative society means a cooperative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any state for the registration of co-operative societies;' We are of the considered view, that though the co-operati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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