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TMI Blog2024 (2) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... ot required to look to the nature of the investment whether it was from its surplus funds or otherwise. The Act does not speak of any adjustment as sought to be made out by learned counsel for the Revenue. The provision does not indicate any such adjustment in regard to interest derived from the co-operative society from its investment in any other cooperative society. Therefore, we direct the Assessing Officer to allow the deduction under section 80P(2) (d) of the Act in respect of interest received from Co-operative bank. Appeal of assessee allowed. - Shri Dr. A. L. Saini, Accountant Member For the Appellant : Shri Umesh Dalal, CA For the Respondent : Shri Vinod Kumar, Sr. DR ORDER PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short the ld. CIT(A) ], National Faceless Appeal Centre (in short the NFAC ), Delhi, dated 06.08.2022, which in turn arises out of an assessment order passed by Assessing Officer under section 143(3) r.w.s. 143(3A) 143(3B) of the Income Tax Act, 1961 (hereinafter ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be allowed to act in leisure and make a mockery of enacted law, because law and provisions are laid down to benefit both sides of litigation. Be that as it may, I have to do justice and the Hon ble Supreme Court in the case of Collector, Land Acquisition vs Mst. Katiji and others , reported in 167 ITR 471, (1988 SC 897) (7) has observed as follows: 4. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non- deliberate delay. 6. When I weigh this aspect then the side of justice becomes heavier and casts a duty on me to deliver justice. The reasons given in the affidavit for condonation of delay were convincing and these reasons would constitute reasonable and sufficient cause for the delay in filing this appeal. I, therefore, condone the delay and admit the appeal for hearing. 7. The Ld. Counsel for the assessee submitted that assessee has claimed the deduction under section 80P(2)(d) of the Act, which is covered in favour of assessee, however the ld. CIT(A) has made the mistake, wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r then the view so taken by the Hon'ble High Court of Gujarat in the case of Surat Vankar Sahakari Sangh Ltd. vs. ACIT (supra). In this order, the Hon'ble High Court of Gujarat has inter alia observed as follows: 8. We have considered the decisions cited by learned advocate for the assessee as well as the revenue. We feel that the decisions cited by the learned advocate for the assessee shall be applicable on the facts of the present case. In the case of K. Nandakumar v. ITO [1993] 204 ITR 856/[1994] 72 Taxman 223 (Ker.), the Kerala High Court has held as under: '4. The effect of Section 80AB is that, for the purpose of computing the deduction under Section 80L, the amount of income of that nature as computed in accordance with the provisions of the Act shall alone be deemed to be the amount of income of that nature. What the section means is that the net income by way of interest computed in the manner provided by the provisions of the Act shall alone be taken into account for computing the benefit. But it must be noted that payment of interest under a loan transaction incurred for the purpose of deriving income from business is not an item which arises in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other co- operative society, the whole of such income. 6. So far as the principle of interpretation applicable to a taxing statute is concerned, we can do no better than to quote the by-now classic words of Rowlatt J., in Cape Brandy Syndicate v. IRC [1921] 1 KB 64, 71 : ...In a taxing Act, one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used, 7. The principle laid down by Rowlatt J., has also been time and again approved and applied by the Supreme Court in different cases including the one, Hansraj Gordhandas v. H. H. Dave, Assistant Collector of Central Excise and Customs, AIR 1970 SC 755, 759. 8. Section 80P(2)(d) of the Act allows whole deduction of an income by way of interest or dividends derived by the co-operative society from its investment with any other co-operative society. This provision does not make any distinction in regard to source of the investment because this Section envisages deduction in respect of any income derived by the co-operative so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the decision of the Hon'ble Gujarat High Court in the case of Surat Vankar Sahakari Sangh Ltd. vs. ACIT (supra) and there is no change in facts and law and the Revenue is unable to produce any material to controvert the aforesaid findings of the judgment of the Hon'ble Gujarat High Court (supra). The issue is also covered by the order of the jurisdictional Coordinate Bench of ITAT, Ahmedabad in the case of The Deesa Mercantile Co-operative Society Limited vs ACIT, in ITA No.2100/Ahd/2014 for AY.2011-12, order dated 17.06.2022. 9. Therefore, respectfully following the binding judgment of the Hon'ble Gujarat High Court, we delete the addition sustained by the ld. CIT(A) to the tune of Rs. 6,49,886/-. 12. As the issue is squarely covered in favour of the assessee by the decision of the Co-ordinate Bench of this Tribunal in the case of The Amroli Vibhag Vividh Karyakari Sahkari M. Ltd. (supra) and there is no change in facts and law and the Revenue is unable to produce any material to controvert the aforesaid findings of the judgment of the Coordinate Bench (supra). Therefore, we direct the Assessing Officer to allow the deduction under section 80P(2) (d) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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