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TMI Blog2023 (11) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of the present case. We find that in Mavilayi Service Co-operative Bank Ltd [ 2021 (1) TMI 488 - SUPREME COURT] while analysing the provisions of section 80P(4) of the Act held that section 80P(4) is a proviso to the main provision contained in section 80P(1) and (2) and excludes only Co-operative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. Also held that the limited object of section 80P(4) is to exclude Co-operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Therefore, we find no merits in the reasoning adopted by CIT(A) in denying deduction u/s 80P(2)(d) to the assessee. Decided in favour of assessee. - Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve banks. 3. The brief facts of the case as emanating from the record are: The assessee is a Co-operative Housing Society. For the assessment year 2015-16, the assessee filed its return of income on 12/07/2016, declaring a total income of Rs. NIL. During the year, the assessee earned interest income of Rs. 5,74,097, from the investments made in various Co-operative Banks and claimed the same as a deduction under section 80P(2)(d) of the Act. The return filed by the assessee was processed vide intimation dated 17/10/2016 issued under section 143(1) of the Act denying the deduction claimed under section 80P(2)(d) of the Act and assessing the total income of the assessee at Rs 5,74,100. 4. The learned CIT(A), vide impugned order, dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the Co-operative Society from the investments, and (ii) such investments should be with any other Co-operative Society. Further, the term co-operative society is defined under section 2(19) of the Act as under: (19) co-operative society means 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 ; 8. In the present case, there is no dispute that the assessee is a Co-Operative Housing Society. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 431 ITR 1 (SC) while analysing the provisions of section 80P(4) of the Act held that section 80P(4) is a proviso to the main provision contained in section 80P(1) and (2) and excludes only Co-operative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. The Hon ble Supreme Court further held that the limited object of section 80P(4) is to exclude Co-operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Therefore, we find no merits in the reasoning adopted by the learned CIT(A) in denying deduction under section 80P(2)(d) of the Act to the assessee. As a result, grounds no. 4 and 5 raised in assessee s appeal are allowed. 9. Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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