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TMI Blog2023 (11) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... y a co-operative society as defined under the Act, be it a Co-operative Society carrying on banking business or Co-operative Society carrying on the other businesses or a Co-operative bank. As decided in The Salem Agricultural Producers Co-operative Marketing Society Ltd [ 2016 (9) TMI 699 - MADRAS HIGH COURT] the respondent therein, which is a Co-operative society, is entitled to avail the benefit under 80P(2)(d) of the Act. Since the impugned orders are passed without considering all these aspects, this Court is of the view that the same are liable to be set aside. Accordingly, the Writ Petitions are allowed and all the impugned notices are set aside. - Hon'ble Mr. Justice Krishnan Ramasamy For the Petitioner : Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operative Societies under the wrong impression that the interest received from the Co-operative Bank is not liable for deduction under Section 80P(2)(d), the respondent Department disallowed the deduction and therefore the present writ petitions have been filed challenging the impugned orders. 4. Per contra, Dr.B.Ramaswamy, learned Senior Central Government Standing Counsel, vehemently opposed and referring to the written submissions submitted by him in paragraphs 21 to 26, would state that the petitioner received the income from the Co-operative Bank and as per the provisions of the Income Tax Act any income received from the Co-operative Bank is not eligible for deduction under Section 80P(2)(d) of the Act. Further, he contended that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the income was received by the Co-operative Society only and not from the Co-operative Bank, hence the petitioner is eligible for the deduction. 7. I have given due consideration for the submission made by the learned counsel appearing for the petitioner as well as the respondent. 8. The main issue is to decide in the present case is as to whether the petitioner Co-operative Society is entitled for a deduction for the interest income received from the Co-operative Bank? 9. It would be appropriate to extract hereunder the relevant portion of Section 80P(2)(d). 80 P . Deduction in respect of income of cooperative societies: (1) ...... ..... ..... (2) The sums referred to in sub-section (1) shall be the following, name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Co - operative Society registered under Co-operative Societies Act, 1912. Thus, a Co-operative Society referred therein is only a co-operative society as defined under the Act, be it a Co-operative Society carrying on banking business or Co-operative Society carrying on the other businesses or a Co-operative bank. 11. The learned counsel for the respondent referred to the judgment of the Hon'ble Supreme Court rendered in Totgars Cooperative Sale Society Ltd., v. Income-tax Officer, Karnataka , wherein the issue came up for consideration as to whether the interest income received by a Co-operative Bank from its members by way of providing the credit facilities to its members is eligible for deduction or not. Ultimately the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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