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TMI Blog2023 (6) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ] Therefore, it cannot be said that the assessment order is erroneous or prejudicial to the interests of the revenue. Therefore, we are of the considered opinion that the order of revision passed by the Ld. PCIT u/s 263 of the Act cannot be sustained in the eyes of law. Hence, the grounds of appeal r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest income earned on its investments/deposits with cooperative banks and further erred in setting aside the issue to the AO. The Appellant prays that the claim of assessee for deduction u/s 80P(2)(d) be granted. 3. Despite service of notice, none appeared on behalf of the assessee nor is any application for adjournment filed by the assessee, in the light of rule 24 of the ITAT Rules, 1963 we proceeded to hear the Revenue. 4. We have heard Ld. DR and perused the material available on record. We find that the issue raised in the present appeal is covered by the earlier decision on the same identical issue of the Pune Tribunal in ITA No. 231/PUN/2022 for assessment year 2017-18, order dated 29.11.2022, wherein also it was the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as erroneous and prejudicial to the 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 Sah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial precedents :- (i) Nashik Road Nagari Sahkari Patsanstha Limited vs. ITO (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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest 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 (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Bank Ltd. v CIT [(2017) 396 ITR took a view that such interest income is attributable to the activities of the society 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 groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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