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TMI Blog2023 (4) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... income earned from investment with co-operative banks. Accordingly, we set aside the impugned order passed by the learned CIT(A) - Decided in favour of assessee. - ITA no.339/Mum./2023 - - - Dated:- 13-4-2023 - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Ms. Aanchal Vyas For the Revenue : Shri Satyaprakash Singh ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 20/07/2022, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [ learned CIT(A) ], for the assessment year 2018 19. 2. The present appeal is delayed by 141 days. The Secretary of the assessee has filed an affidavit praying for condonation of delay. In the said affidavit sworn on 03/02/2023, the Secretary of the assessee has submitted as under:- 1. Our society being the assessee which is a co. op. housing society the day to day operations of the same were managed by the designated manager who had the exclusive access to all the society emails ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal, the assessee has raised the following grounds: 1. The Ld. Commissioner of Income-tax (Appeal), NFAC, erred in upholding the action of Ld. Assessing Officer in denying deduction of INR 28,89,538/- u/s 80P(2)(d) of the Act. 2. The impugned order dated 23.03.2021 passed u/s 143(3) r.w.s. 143(3A) and 143(3B) of the Act is bad in law, in as much as, the mandatory provisions prescribed u/s 143(3A) and 143(3B) read with Faceless Assessment Scheme has not been followed as no show cause notice in the form of draft assessment order was issued. 5. The Ld. AO has erred in levying interest u/s 234B and 234C of the Act. 6. The grounds of appeal raised are independent and without prejudice to each other. 7. The Appellant craves leave to add, to amend, alter/delete and/or modify the above grounds of appeal on or before the final hearing. 5. The brief facts of the case as emanating from the record are: The assessee is a co-operative housing society duly registered under Maharashtra Co-operative Societies Act, 1960, and is not engaged in any commercial business activity. For the year under consideration, the assessee filed its return of income declaring a t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 80P(2)(d), and interest income of Rs.36,790 earned from investments with non co-operative bank was claimed as deduction under section 80P(2)(c)(ii) of the Act. As evident from the record, the lower authorities proceeded to determine the eligibility of the assessee in respect of the deduction claimed only as per provisions of section 80P(2)(d) of the Act, despite the fact that the assessee made specific submissions regarding its claim under section 80(2)(c)(ii) of the Act in respect of interest earned from non co-operative bank. Since there are no findings by any of the lower authorities in respect of assessee s claim of deduction under section 80P(2)(c)(ii) of the Act, we deem it appropriate to remand this issue to the file of AO for de novo adjudication only limited to this aspect. 8. 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 a 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 25/04/2018, while dealing with the provisions of section 80P(2)(d) vis- -vis section 80P(4) of the Act, the coordinate bench of the Tribunal observed as under: 7. Thus, from a perusal of the aforesaid Sec. 80P(2)(d) it can safely be gathered that income by way of interest income derived by an assessee co-operative society from its investments held with any other cooperative society, shall be deducted in computing the total income of the assessee. We may herein observe, that what is relevant for claim of deduction under Sec. 80P(2)(d) is that the interest income should have been derived from the investments made by the assessee co-operative society with any other cooperative society. We though are in agreement with the observations of the lower authorities that with the insertion of Sub-section (4) of Sec. 80P, vide the Finance Act, 2006, with effect from 01.04.2007, the provisions of Sec. 80P would no more be applicable in relation to any co-operative bank, other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, but however, are unable to subscribe to their view that the same shall also jeopardise the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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