2023 (3) TMI 49

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..... 1 - ITAT PUNE ] has already been held to be a Co-operative Society and the assessee before us also has invested and earned interest and dividend income from the same Pune District Central Co-operative Bank. Since, it is a Co-operative Society, the interest earned from investment made in Pune District Central Co-operative Bank are eligible for deduction u/s. 80P(2)(d) of the Act. We set aside the respective NFAC orders for all the three appeals before us and direct the Ld. AO for granting deduction u/s. 80P(2)(d) of the Act to the assessee. The grounds of appeal are allowed. - ITA Nos.906, 907 & 908/PUN/2022 - - - Dated:- 27-2-2023 - Shri R.S. Syal, Vice President And Shri Partha Sarathi Chaudhury, Judicial Member For the Assessee : .....

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..... of the Act on which issue the NFAC had denied stating that those entities were actually not Co-operative Society but are Co-operative Bank. Taking the lead case in ITA No. 908/PUN/2022 for narration of facts, it is observed that the assessee is a Co-operative credit society registered under the Maharashtra Co-operative Society Act, 1960. The society is providing credit facilities to its members. The main activity of the society is to disburse loan to its members and recover the same from the members. It s main source of income is from interest on loan, dividend on shares of Pune District Central Co-operative Bank (PDCCB), interest on investments with banks interest on securities. At the time of assessment, the Ld. AO observed that the asses .....

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..... f the Act in respect of interest income earned from such Cooperative Society. For the sake of completeness, the relevant paragraph is extracted as follows : 7. I have heard the rival submissions and gone through the relevant material on record. Section 80P(2)(d) provides that deduction shall be allowed in respect of any income by way of dividend derived by the Cooperative Society from its investment with any other Cooperative Society . Thus, it can be seen that the only requirement for claiming deduction u/s. 80P(2)(d) in respect of dividend is that it should be derived by the assessee cooperative society from its investments made with any other cooperative society. The assessee received dividend income in the instant case from anot .....

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