9911796707
TMI Blog2023 (6) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessee : Shri Ramesh Iyer, A.R. For the Revenue : Mrs. Vranda U Matkari, D.R. ORDER Per : Kuldip Singh, Judicial Member: At the very outside the appellant, M/s. Vaibhavnagar Co-op. Credit Soc. Ltd. (hereinafter referred to as the assessee ) sought to condone the delay of 440 days in filing the present appeal before the Tribunal on the grounds inter-alia that the assessee cooperative society is formed for the benefit of underprivileged members of the society like small street vendors, auto rickshaw pullers and taxi drivers, small shopkeepers, salaried employees and persons who are unable to get finance from the national and schedule banks due to the cumbersome procedures; that assessee society does not use electronic forms of media and as such email ID of the society remained unread; that only on September 10, 2022 the assessee downloaded the order from the portals; that delay in filing the appeal was unintentional and beyond the control of the society. 2. However, on the other hand, the Ld. D.R. for the Revenue opposed the application for condonation of delay on the ground that the late filing of appeals in this case is apparently malafide due to ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : the assessee's return of income filed for the year under consideration was initially processed under section 143(1) of the Income Tax Act, 1961 (for short 'the Act'), thereafter case was subjected to scrutiny. Necessary notices were issued to the assessee society. Assessee society in the return of its income shown gross total income at Rs.54,89,912/- and the entire amount has been claimed as deduction under section 80P of the Act being the interest earned by parking its surplus funds with cooperative Bank. The Assessing Officer (AO) after declining the contentions raised by the assessee proceeded to decline the deduction claimed by the assessee under section 80P of the Act and thereby framed the assessment under section 143 of the Act. 6. The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has confirmed the addition by dismissing the appeal. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the assessee has come up before the Tribunal by way of filing present appeal. 7. We have heard the Ld. Authorised Representatives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(d) of the Act is covered in assessee s favour by orders of the various coordinate benches of the Tribunal in the following cases : (i). M/s Solitaire CHS Ltd. Vs. Pr.CIT-26, Mumbai, ITA No.3155/Mum/2019, dated 29.11.2019 (ii). Land and Cooperative Housing Society Ltd. Vs. ITO (2017) 46 CCH 52 (Mum.) (iii). M/s C. Green Cooperative Housing and Society Ltd. Vs. ITO-21(3)(2), Mumbai (ITA No. 1343/Mum/2017, dated 31.03.2017. (iv). Marvwanjee Cama Park Cooperative Housing Society Ltd. Vs. ITO-Range 20(2)(2), Mumbai (ITA NO. 6139/Mum/2014, dated 27.09.2017. (v). Kaliandas Udyog Bhavan Pemises Co-op. Society Ltd. Vs. ITO, 21(2)(1), Mumbai. In the aforesaid orders, it has been held by the Tribunal that though the cooperative banks pursuant to the insertion of sub-section (4) to Sec. 80P of the Act would no more be entitled for claim of deduction u/s 80P of the Act, but as a co-operative bank continues to be 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, therefore, the interest income derived by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsection (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)............................................................................................ (b)............................................................................................ (c)............................................................................................ (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income; On a perusal of Sec. 80P(2)(d), it can safely be gathered that interest income derived by an assessee co-operative society from its investments held with any other co-operative society shall be deducted in computing its total income. 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 cooperative soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) (ii) M/s C. Green Cooperative Housing and Society Ltd. Vs. ITO-21(3)(2), Mumbai (ITA No. 1343/Mum/2017, dated 31.03.2017 (iii) Marvwanjee Cama Park Cooperative Housing Society Ltd. Vs. ITO-Range-20(2)(2), Mumbai (ITA No. 6139/Mum/2014, dated 27.09.2017. (iv). 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 Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon‟ble High Court of Gujarat in the case of State Bank Of India Vs. CIT (2016) 389 ITR 578 (Guj), had held, that the interest income earned by the assessee on its investments with a co-operative bank would be eligible for claim of deduction under Sec. 80P(2)(d) of the Act. Still further, we find that the CBDT Circular No. 14, dated 28.12.2006, also makes it clear beyond any scope of doubt that the purpose behind enactment of sub-section (4) of Sec. 80P was that the co-operative banks which were functioning at par with other banks would no more be entitled for claim of deduction under Sec. 80P(4) of the Act. Insofar the reliance placed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d taken a possible view, and therein concluded that the assessee would be entitled for claim of deduction under Sec. 80P(2)(d) on the interest income earned on its investments/deposits with cooperative banks, therefore, the Pr. CIT was in error in exercising his revisional jurisdiction u/s 263 for dislodging the same. In fact, as observed by us hereinabove, the aforesaid view taken by the A.O at the time of framing of the assessment was clearly supported by the order of the jurisdictional Tribunal in the case of Land and Cooperative Housing Society Ltd. Vs. ITO (2017) 46 CCH 52 (Mum). Accordingly, finding no justification on the part of the Pr. CIT, who in exercise of his powers under Sec. 263, 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), date 14.09.2016. As the facts and the issue involved in the present case before us remains the same as were there before the Tribunal in the case of M/s Solitaire CHS Ltd. (supra), wherein the order passed by the Pr. CIT u/s 263 of the Act was quashed, we, thus, r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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