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TMI Blog2023 (9) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. The addition amount is quashed. Decided in favour of assessee. - DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER For the Appellant : Sh. J. S. Bhasin, Adv. For the Respondent : Sh. Manoj Aggarwal, Sr. DR ORDER Per: Anikesh Banerjee, JM: The instant appeal of the assessee was filed against the order of the ld. Commissioner of Income Tax (Appeals), NFAC, Delhi,[in brevity the CIT (A) ], order passed u/s 250 of the Income Tax Act 1961, [in brevity the Act ] for A.Y. 2020-21. The impugned order was emanated from the order of the NFAC, Delhi, [in brevity the AO ] order passed u/s 143(3) of the Act. 2. The assessee has taken the following ground: 1. That the ld.CIT(A)/NFAC grossly erred in law in arbitrarily confirming the addition of Rs. 94,13,739/-, as wrongly made by the Id.AO, by disallowing deduction claimed u/s.80P(2)(a)(i) in respect interest earned from Cooperative Banks. 2. That the ld.CIT(A)/NFAC was not justified in prematurely passing an ex-parte order in appeal, when admittedly the assessee's earlier appeal for AY 2007-08, on the same issue was still pending in first appeal. 3. That in any cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Cooperative Bank is not eligible u/s 80P(4). Section 80P(4) only restricted investment in the Cooperative Society not in bank. So, the order of the Ld. CIT(A) is maintainable. The ld DR invited our attention in assessment order page 2 para 3.1 is reproduced as below: 3.1 From the assessment records, it was noticed that assessee had earned interest income from its members and as interest on savings account and FDRs made with other banks as under: Particulars Interest on FDRs Saving Interest Interest from members The Jalandhar Central Coop. Bank, Patara, Jalandhar. 10,33,074 The Jalandhar Central Coop. Bank, Rama Mandi, Jalandhar 24,63,842 52,086 The Citizen urban Coop. Bank Ltd., Jalandhar 1,29,123 8982 - Interest from members 2,68,544 Total 36,26,039/- 61,068/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the revenue. In our opinion, the Tribunal was right in law in allowing deduction under section 80P(2)(d) in respect of interest of Rs. 4,90,919 on account of interest received from Nawanshahr Central Co-operative Bank without adjusting interest paid to the bank. Therefore, the reference is answered against the revenue, i.e., in the affirmative, and in favour of the assessee. 7. We heard the rival submissions and perused the material available on record. Having discharge the matter in the issue of section 80P(2)(a)(i), the claim of assessee for deduction is viewed as follows:- 7.1. The Cooperative Bank wherein the assessee deposited out of its surplus funds for earning interest. Then, the only interest was earned by the assessee on the deposit would be eligible for deduction u/s 80P(2)(d). The definition of the Co-operative Society is bought in larger umbrella under which the Cooperative Banks is performed. In this consideration we relied on the catena of judgments which are as follows: - a) In the case of Tumukur Merchants Souhard credit coop limited Vs. The income Tax officer ward-1 Tumkur, [2015] 55 taxmann.com 447 (Karnataka) 10. In the instant case, the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. 80P(2)(d), in respect of the interest income on the investments made with the co-operative bank. We thus set aside the order of the lower authorities and conclude that the interest income of Rs. 27,48,553/- earned by the assessee on the investments held with the co-operative bank would be entitled for claim of deduction under Sec. 80P(2)(d). d) In the case of Tirupati Campus PH. II CO-OP HOUSING SOCIETY MARYADIT VERSUS THE NCOME TAX OFFICER WARD -7 (4), PUNE (ITAT_Pune)ITA No.1429/PUN/2018, AY-2015-16, Date of Order 28/02/2019. 5. I have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to denial of claim of deduction u/s 80P(2)(d) of the Act. The claim of deduction by the assessee was denied by the AO with respect to the interest income earned from Saraswat Co-operative Bank on the ground that the same is not a Co-operative Society. I find that the Co-ordinate Bench of the Delhi Tribunal in the case of M/s. The Veer Cooperative Group Housing Society Limited (supra) has held that Sarswat Co-operative Bank to be a Co-operative Society and the interest earned therein to be entitled to claim deduction u/s 80P(2)( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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