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TMI Blog2023 (5) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order on the limited issue of re-examination of the assessee's claim of deduction under sec.80P of the Act and, therefore, he prayed that the order of the PCIT be confirmed. 3. We have given our thoughtful consideration to the instant sole issue of correctness of PCIT's revision directions vis-à-vis the assessee's sec.80P deduction claim regarding it's income derived from deposits made in various cooperative banks. It is noticed at this stage that this tribunal's recent order dated 13.01.2023 ITA.No.421/PUN./2022 for the preceding assessment year 2017-18 in Solapur Zilha Prathamik Shikshah Sahakari Sanstha Niyamit, Solapur vs. PCIT, Pune-4, Pune has rejected the Revenue's very stand as under : "3. We have given our thoughtful consideration to the vehement rival stands against and in support of the correctness of the PCIT's foregoing revision directions and find no merit therein. We make it clear that the PCIT has quoted various judicial precedents to hold that the assessee's interest income derived from parking of surplus funds in fixed deposits does not qualify under sec.80P relief. That being the case, we note that this tribunal's recent coordinate bench's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not object to the seeking of condonation of the delay in filing of the appeal by the assessee society. After giving a thoughtful consideration, we are of the considered view, that as there were justifiable reasons leading to delay on the part of the assessee in filing of the present appeal before us, therefore, the same merits to be condoned. 5. On merits, it was submitted by the ld. A.R, that as the A.O while framing the assessment had after making necessary verifications taken a plausible view, therefore, the Pr. CIT had exceeded his jurisdiction by seeking to review the order passed by him in the garb of the revisional powers vested with him under Sec.263 of the Act. It was submitted by the ld. A.R, that the issue as regards the eligibility of the assessee for claim of deduction under Sec.80P(2)(d) on interest income derived from investments/deposits lying with co-operative banks was squarely covered by the various orders of the coordinate benches of the Tribunal viz., (i). M/s Solitaire CHS Ltd. vs. Pr. CIT, ITA No. 3155/Mum/2019; dated 29.11.2019 ( ITAT "G" Bench, Mumbai); Kaliandas Udyog Bhavan Premises Co-op Society Ltd. Vs. ITO-21(2)(1), Mumbai, ITA No. 6547/Mum/2017 (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk, other than a Primary Agricultural Credit Society or a Primary Co-operative Agricultural and Rural Development Bank. Observing, that the co-operative banks from where the assessee was in receipt of interest income were not cooperative societies, the Pr. CIT was of the view that the interest income earned on such investments/deposits would not be eligible for deduction under Sec. 80P(2)(d) of the Act. 8. After necessary deliberations, we are unable to persuade ourselves to concur with the view taken by the Pr. CIT. Before proceeding any further, we may herein cull out the relevant extract of the aforesaid statutory provision, viz. Sec. 80P(2)(d), as the same would have a strong bearing on the adjudication of the issue before us. "80P(2)(d) (1). Where in the case of an assessee being a cooperative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in subsection (2), in computing the total income of the assessee. (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 ..... s a cooperative bank continues to be a co-operative 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, therefore, the interest income derived by a co-operative society from its investments held with a co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d) of the Act. 9. In so far the judicial pronouncements that have been relied upon by the ld. A.R are concerned, we find that the issue that a co-operative society would be entitled for claim of deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a cooperative bank is covered in favour of the assessee in the following cases: (i). M/s Solitaire CHS Ltd. vs. Pr. CIT, ITA No. 3155/Mum/2019; dated 29.11.2019 ( ITAT "G" Bench, Mumbai); (ii). Majalgaon Sahakari Sakhar Karkhana Ltd. Vs. ACIT, Circle-3, Aurangabad, ITA No, 308/Pun/2018 (ITAT Pune) (iiii). Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. Vs. ITO, 21(2)(1), Mumbai We further find that the Hon'ble High Court of Karnataka in the case of Pr. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciety on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. 10. Be that as it may, in our considered view, as the A.O while framing the assessment had taken a possible view, and allowed the assessee"s claim for deduction under Sec. 80P(2)(d) on the interest income earned on its investments/deposits with co-operative banks, therefore, the Pr. CIT was in error in exercising his revisional jurisdiction u/s 263 of the Act for dislodging the same. Accordingly, finding no justification on the part of the Pr. CIT, who in exercise of his powers under Sec. 263 of the Act, had dislodged the view that was taken by the A.O as regards the eligibility of the assessee towards claim of deduction under Sec. 80P(2)(d), we set-aside his order and restore the order passed by the A.O under Sec. 143(3), dated 07.03.2016." 4. Faced with the situation, we adopt the learned coordinate bench's above extracted direction mutatis mutandis to reverse the PCIT's impugned revision directions. The Assessing Officer assessment herein stands restored as the necessary corollary. Ordered accordingly." 4. We adopt the above detailed reasoning muta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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