9911796707
TMI Blog2024 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. In these facts, we have to understand the case of the assessee. Thus, the issue before us is whether the impugned interest earned by the Assessee is eligible for deduction u/sec. 80P(2)(a)(i) of the Act or u/s 80P(2)(d) of the Act. In this case, admittedly assessee is a Co-operative Society registered under the Co-operative Societies Act, and it is engaged in providing credit facility to its members. Assessee had earned interest by depositing surplus funds which were not immediately required. Hon ble High Court in the case of Vavveru Co-operative Rural Bank Ltd [ 2017 (4) TMI 663 - ANDHRA PRADESH HIGH COURT] succinctly distinguished the decision of the Hon ble Supreme Court in the case of Totagar Cooperative Sale Society [ 2010 (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P(2)(a)(i) or 80P(2)(d) of the IT Act was not justified. 3. The Appellate craves the right to add, amend, modify, alter, revise, substitute, delete any or all grounds of the appeal, if deemed necessary at the time of hearing of the appeal." 2. At the outset of hearing, no one appeared on behalf of the assessee. No adjournment application was filed. Brief facts of the case : 3. Assessee is a Co-operative Credit Society engaged in the business of providing credit facilities to the members by accepting deposits from members. Assessee is registered under the Maharashtra Co-operatives Act, 1960 on 29.03.2024. Assessee e-filed Return of Income claiming deduction u/sec. 80P(2)(a)(i) of Rs. 26,13,245/-. The assessee's case was selected for scr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Saraswat Co-operative Bank FDR 11529801 7 NDCC Bank FDR 1790250 5.1 Assessee claimed deduction u/sec. 80P(2)(a) of the Act on the interest earned from above Co-operative Banks/Banks. 6. The assessee had claimed deduction u/sec. 80P(2) for the interest earned from various Co-operative Banks / Nationalized / Scheduled Banks. In this case, the AO has ignored most important submission of the assessee that the Assessee is a Co-Operative Society registered under Maharashtra State Co-Operative Society Act and it is under the control of Registrar of Co-Operative Society Maharashtra State. The Assessee also submitted that there were no member who wanted to avail loan from society and surplus funds were invested to earn interest and such i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (i) to (vii) of clause (a) of subsection (2) of section 80P or not. 9. While the petitioners place strong reliance upon a decision of the Division Bench of this court in CIT v. Andhra Pradesh State Cooperative Bank Ltd. [2011] 12 taxmann.com 66/200 Taxman 200/336 ITR 516, the Revenue places strong reliance upon the decision of the Supreme Court in Totgar's Co-operative Sale Society Ltd. v. ITO [2010] 188 Taxman 282/322 ITR 283. …………………… 34. The case before the Supreme Court in Totgar's Co-operative Sale Society Ltd.'s case (supra) was in respect of a co-operative credit society, which was also marketing the agricultural produce of its members. As seen from the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under clause (d) or (e), as the case may be. 36. The original source of the investments made by the petitioners in nationalised banks is admittedly the income that the petitioners derived from the activities listed in sub-clauses (i) to (vii) of clause (a). The character of such income may not be lost, especially when the statute uses the expression "attributable to" and not any one of the two expressions, namely, "derived from" or "directly attributable to". 37. Therefore, we are of the considered view that the petitioners are entitled to succeed. Hence, the writ petitions are allowed, and the order of the Assessing Officer, in so far as it relates to treating the interest income as something not allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
