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TMI Blog2024 (6) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... ks under the Banking Regulation Act and the banking activities under the Banking Regulation Act are altogether different. Therefore, the Hon ble Supreme Court held that the assessee, a co-operative credit society, could not be termed a bank/Co-operative Bank and that being a credit society, it was entitled to exemption under section 80(P)(2) of the Act. Thus, we find no basis in denial of deduction claimed under section 80P(2)(d) of the Act in respect of interest income earned from the investments with Co-operative Banks. Claim of deduction u/s 80P(2)(d) of the Act, it is also pertinent to note that all Co-operative Banks are Co-operative Societies but vice versa is not true. We find that the coordinate benches of the Tribunal have consiste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on claimed of Rs. 3,67,640 under section 80P of the Act. 2. erred in not appreciating the submission made by the Appellant that the said eligible deduction was not considered on account of Inadvertent error made while filing the Income Tax Return. 3. erred in holding that deduction can be claimed by filing revised return without appreciating the fact that time limit of filing revised return has already passed. 3. The brief facts of the case as emanating from the record are: The assessee is a co-operative credit society registered under the Maharashtra Co-operative Societies Act, 1960, and was formed to cater to the financial needs of its members. For the year under consideration, the assessee filed its return of income on 18/01/2022 declari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of Rs. 10,11,013 earned by the assessee from grant of loans to the members was allowed under section 80P(2)(a)(i) of the Act. Further, the interest income of Rs. 40,115 from savings in Co-operative Bank was allowed under section 80P(2)(d) of the Act. However, the interest income of Rs. 3,67,744 from fixed deposits in Co-operative Banks was disallowed under section 80P(2)(d) of the Act. The learned CIT(A) also did not grant any relief to the assessee by placing reliance upon the decision of the Hon ble Supreme Court in Goetze (India) Ltd. (supra), as the assessee submitted that due to inadvertent error in the return of income by disclosing the items of income the deduction claimed of Rs. 4,07,859 has been restricted to Rs. 40,115. 6. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ; 9. In the present case, there is no dispute that the assessee is a Co-operative Society, which is engaged in providing credit facilities to its members, and was formed to cater to the financial needs of its members. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included in the gross total income of the assessee, the same shall be allowed as a deduction. It is pertinent to note that since the assessee is registered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be the Co-operative Banks/Banks under the Banking Regulation Act and the banking activities under the Banking Regulation Act are altogether different. Therefore, the Hon ble Supreme Court held that the assessee, a co-operative credit society, could not be termed a bank/Co-operative Bank and that being a credit society, it was entitled to exemption under section 80(P)(2) of the Act. Thus, we find no basis in denial of deduction claimed under section 80P(2)(d) of the Act in respect of interest income earned from the investments with Co-operative Banks. 10. As regards the claim of deduction under section 80P(2)(d) of the Act, it is also pertinent to note that all Co-operative Banks are Co-operative Societies but vice versa is not true. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive banks is entitled for deduction under section 80P(2)(d) of the Act. 9. In view of what has been discussed above, we are of the considered view that the Ld. CIT(A) has erred in upholding the denial of deduction by the AO to the assessee society claimed under section 80P(2)(d) of the Act, hence, AO is directed to allow the same. 11. Therefore, in view of the aforesaid findings, we uphold the plea of the assessee and direct the AO to grant deduction under section 80P(2)(d) of the Act to the assessee in respect of interest income earned from investment with Co-operative Banks. Accordingly, we set aside the impugned order passed by the learned CIT(A). As a result, the grounds raised by the assessee are allowed. 12. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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