9911796707
TMI Blog2024 (6) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... avasaya Seva Sahakara Sangha Niyamitha [ 2024 (6) TMI 1096 - ITAT BANGALORE] as held in respect of associate / nominal members, Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. [ 2021 (1) TMI 488 - SUPREME COURT] has held that the expression Members is not defined in the Income-tax Act. Hence, it is necessary to construe the expression Members in section 80P(2)(a)(i) in the light of definition of that expression as contained in the concerned co-operative societies Act - Thus, the facts are to be examined in the light of principles laid down in Mavilayi Service Cooperative Bank Ltd. (surpa) - we remit this issue of deduction u/s 80P(2)(a)(i) of the Act to the files of Ld.AO to examine the same de novo in the light ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MEMBER: This appeal by assessee is directed against order of NFAC for the assessment year 2017-18 dated 28.2.2024. The assessee has raised following grounds of appeal:- The Grounds mentioned hereinafter are without prejudice to one another. 1. That the learned Commissioner of Income Tax (Appeals) ['CIT(A)'] erred on facts and circumstances of the case and in law so far as his order is prejudicial to the interest of the Appellant. 2. The learned CIT(A) has erred on facts and in the circumstances of the case and in law by upholding the view of the learned Assessing Officer ('AO') who had held that the Appellant is not eligible or deduction under section 80P(2)(a)(i) of the Act to the extent of Rs since it has carried on busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80P(2)(a)(i) of the Act. 7. The learned CIT(A) has erred on facts and in circumstances of the case and in law by considering that the Appellant is not entitled for deduction under section 57 of the Act for the expenses incurred by it against interest received from Cooperative Bank. 8. The learned CIT(A) has erred in confirming the levy of interest under sections 234A and 234B of the Act though the same should not have been levied in the present situation. That the Appellant craves leave to add to and/or to alter, amend, rescind, modify, the grounds herein above or produce further documents before or at the time of the hearing of this appeal. 2. the assessee claimed deduction u/s 80P of the Income Tax Act, 1961 (in short The Act ) at Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Judgement of Hon ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. Vs. CIT Calicut (2021) 123 taxmann.com 161 (SC) b) Judgement of Hon ble High Court of Karnataka in the case of PCIT Hubli Vs. Totagars Co-operative Sale Society (2017) 78 taxmann.com 169 (Karn.) c) Judgement of Hon ble High Court of Karnataka in the case of Totgars Co-operative Sale Society Ltd. Vs. ITO (2015) 58 taxmann.com 35 (Karn.) d) Decision of ITAT Bangalore in ITA No.319/Bang/2023 dated 18.5.2023 in the case of M/s. University of Agricultural Employees House Building Co-Op. Society Ltd. Vs. ACIT e) Decision of ITAT Bangalore in ITA Nos.376 to 379/Bang/2023 dated 18.7.2023 in the case of The Totagars Co-operative Sale Society Ltd. vs. ACIT f) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80P(4) of the I.T. Act is to be read as a proviso. It was stated by the Hon ble Apex Court that section 80P(4) of the Act now specifically excludes only co-operative banks which are co-operative societies engaged in the business of banking i.e. engaged in lending money to members of the public, which have a license in this behalf from the RBI. The Hon ble Apex Court had enunciated various principles in regard to deduction u/s 80P of the Act. On identical factual situation, the Bangalore Bench of the Tribunal in the case of M/s. Ravindra Multipurpose Cooperative Society Ltd. v. ITO in ITA No.1262/Bang/2019 (order dated 31.08.2021) had remanded the issue to the files of the A.O. for de novo consideration. The Tribunal directed the A.O. to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration to decide the same in the light of above observations. 4. Next issue in this appeal is with regard to granting of deduction u/s 80P(2)(d) of the Act. 4.1 In our opinion, similar issue came for consideration before this Tribunal in the case of Kotekar Vyavasaya Seva Sahakara Sangha Niyamitha in ITA No.452 to 454/Bang/2024 dated 1.5.2024, wherein the Tribunal held as under: 6. We have heard the rival submissions and perused the materials available on record. As regards the claim of deduction u/s 80P(2)(d) of the I.T. Act, we direct the A.O. to verify whether interest / dividend is received by the assessee out of investments made with Cooperative Societies. If the assessee earns interest / dividend income out of investments with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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