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TMI Blog2023 (7) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... - As decided in [ 2022 (12) TMI 355 - ITAT PUNE] error in the assessment order should be one that it is not debatable or plausible view. In a case where the AO examined the claim, took one of the plausible views, the assessment order cannot be termed as an erroneous . Admittedly the interest income was earned from the cooperative banks, the cooperative bank is also a specie of cooperative society, therefore, the interest income earned by the cooperative society from the cooperative banks qualifies for deduction u/s 80(P)(2)(d) of the Act. Such interest also qualifies for exemption u/s 80P(2)(a)(i) as held by the Co-ordinate Bench of Pune Tribunal in the case of Nashik Road Nagari Sahkari Patsanstha Limited [ 2021 (12) TMI 1259 - ITAT PUNE] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sanstha Maryadit v. PCIT in ITA No.231/PUN/2022 for A.Y. 2017-18, order dated 29.11.2022, wherein also it was the order passed u/s 263 read with issue of deduction u/s 80P(2)(a)(i) or 80P(2)(d) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). Learned counsel for the assessee in ITA No.667/PUN/2023 has submitted that the issue involved in this appeal is with regard to sec. 80P(2)(d), nonetheless, principally matter is covered by the decision of the Pune Tribunal in Lokmangal Nagri Sahakari Path Sanstha Maryadit (supra). None appeared for the assessee in ITA No.695/PUN/2023. We have observed that the issue involved in this appeal u/sec. 80P(2)(d) is also covered by the decision of Pune Tribunal in Lokmangal Nagri Sahakari P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he interests of the revenue. In response to the show cause notice, the appellant filed a detailed submission stating that the interest income earned by the cooperative bank on the investments made with the other cooperative bank is eligible for deduction under the provisions of section 80P(2)(a)(i) as well as under the provisions of section 80P(2)(d) placing reliance on the following decisions : (i) Gurumauli Nagari Sahkari Pat Sanstha vs. PCIT order dated 13.01.2022 (Pune - Trib.). (ii) Tumkur Merchants Souharda Credit Cooperative Ltd. vs. ITO 230 Taxman 309 (Kar - HC). (iii) Sureshdada Jain Nagari Sahakari Patsanstha Maryadit (ITA No. 713/PUN/2016). (iv) Nasik Road Nagri Sahakari Patsanstha (ITA No.1700/PUN/2017 order dated 27.12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ITA No.1700/PUN/2017 dated 27.12.2021). (ii) Rena Sahakari Sakhar Karkhana Ltd. vs. Pr.CIT (ITA No.1249/PUN/2018 dated 07.01.2022). (iii) Shri Chandraprabhu Urban Co-operative Credit Society Ltd. vs. ITO (ITA No.61 & 62/PAN/2018 dated 10.05.2022). 8. Thus, it was contended that when the issue was stands covered and decided in favour of the assessee, then it cannot be said that the assessment order is erroneous as well as prejudicial to the interests of the revenue. 9. On the other hand, ld. CIT-DR placing reliance on the order of the ld. PCIT submits that failure of the Assessing Officer to examine the taxable income earned on the investments from cooperative bank rendered assessment order erroneous and prejudicial to the interests ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Nashik Road Nagari Sahkari Patsanstha Limited (supra) wherein the Tribunal held as under:- "9. We heard the rival submissions and perused the material on record. Admittedly, the appellant is a Cooperative society formed under the provisions of Maharashtra Cooperative Societies Act,1960 with the objective of accepting deposits and lending money to its members. The money which is not immediately required for the purpose of lending to the members is deposited with Bank of Baroda in the form of Fixed Deposit. The question is whether the interest so earned qualifies for exemption u/s. 80P(2)(a)(i) of the Act. The AO as well as the CIT(A) were of the opinion that the interest earned from third parties or nonmembers does not quality for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety and, therefore, eligible for exemption u/s. 80P(2)(a)(i) of the Act. The Coordinate Bench of Pune Benches in the case of M/s. Ratnatray Gramin Bigar Sheti Sah. Pat Sanstha Maryadit Vs. ITO (ITA Nos.559/560/PUN/2018, dated 11-12- 2018) has taken view in favour of the assessee following the judgment of Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). Respectfully following the decision of the Coordinate Bench, we hold that the interest income earned on the investment of surplus money with banks is also eligible for exemption u/s. 80P(2)(a)(i) of the Act. Thus, the grounds of appeal No. 1 & 2 stands allowed." 11. Thus, we find that the issue which is subject matter of revision is c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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