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TMI Blog2023 (7) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... the interpretation given by the CIT(A) while dismissing the appeal of the assessee is not correct and therefore, in light of the decision of the Hon ble Apex Court in case of Mavilayi Service Cooperative Bank Ltd. (supra) is applicable in the present case. Hence, the appeal of the assessee is allowed. - I.T.A. No. 395/Ahd/2023 - - - Dated:- 19-7-2023 - Ms. Suchitra Kamble, Judicial Member For the Appellant : Shri Vikash Pandya, A.R. For the Respondent : Ms. Saumya Pandey Jain, Sr. D.R. ORDER The appeal filed by the assessee is against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short Ld. CIT(A) ), National Faceless Appeal Centre (in short NFAC ), Delhi on 21.03.2023 for A.Y. 2021-22. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled the law that for being considered as a cooperative bank, licence from RBI, in this regard is a sine qua non in absence of the RBI licence as such the Assessee cannot be treated as cooperative bank Hence disallowing the deduction by referring to the provisions of section 80P(4) is completely unsustainable Moreover section BOP(2)(d) provides exemption to interest earned on fixed deposit in cooperative societies: It is nobody's case that cooperative bank are not cooperative societies 5. Moreover similar issue was elaborately dealt by a larger bench of honourable Supreme Court in the case of The Mavilayi Service Co-operative Bank Ltd Drs Vs CIT, Calicut Ors (Civil Appeal Nos. 7343 7850 of 2019 dated 121 2021 and the issue w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in that case was not so licenced, the assessee would not fall within the ma of section 80P(4). (VI) Same view was also taken into consideration by Honourable ITAT Mumbai in case of New Ideal Co-Operative Housing Limited vs. Income Tax Officer TA No. 2681/Mum/2019) 6. The Appellant submits that the adjustments made to the Returned Income be deleted and deduction claimed u/s 80P be allowed. Attracted Section-143(1) 2. On the facts and in the circumstances of the case and in law, that a cooperative society will not get exemption on the interest earned on deposits in cooperative bank is not something which is a subject matter of adjustment under section 143(1)(a) of the Act. Additional Income tax demand of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Mavilayi Service Cooperative Bank Ltd. ors. vs. CIT 431 ITR 1 (SC). The Ld. A.R. also relied upon the decision of the Tribunal in case of Amore Commercial Premises Cooperative Society Ltd. vs. CPC ITA No. 2873 2874/M/2022 order dated 17.01.2023. 6. The Ld. D.R. relied upon the order of the CIT(A) and pointed out that the Hon ble Apex Court in case of PCIT vs. Totagars Cooperative Sale Society 395 ITR 611 has categorically mentioned that only the primary agricultural credit societies with their limited work of providing credit facility to its members continued to be governed by the ambit and scope of deduction under Section 80P of the Act. 7. Heard both the parties and perused all the relevant material available on record. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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