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TMI Blog2024 (7) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. Thus if the cooperative banks are falling into the definition of 'cooperative societies', naturally the deduction would be eligible to the assessee u/s 80P (2) (d) of the act. Therefore it needs to be examined that whether the cooperative banks are operative societies under section 2 subsection (19) of the act are not. Section 2 (10) of the Maharashtra cooperative societies act defines Co-operative bank means a Co-operative society which is doing the business of banking as defined in clause (b) of sub-sections (1) of section 5 of the Banking Companies Act, 1949 and includes any society which is functioning or is to function as an Agricultural and Rural Development Bank under Chapter XI; Therefore according to the above definit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with that appellate order has preferred appeal raising following grounds: a. In the facts and circumstances of the case and in law, the Assessing Officer erred in assessing the total income of Rs. 14,72,930/- as against returned income of Nil/- and thereby made addition to the tune of Rs. 14,72,930/-. b. In the facts and circumstances of the case and in law, the learned NFAC has stated in the order that legislature intends to exclude co-operative banks from the definition of co- operative society under section 2 (19) of the Income Tax Act, 1961 which is not correct. All co- operative banks need to register themselves as co- operative society first before obtaining the license to operate as banks from RBI. c. In the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cooperative society. The assessee submitted its reply on 13/4/2017 contesting that assessee is eligible for deduction under that section because the assessee has invested in a cooperative bank which are also cooperative societies and income earned from that from another cooperative society is eligible for deduction. The learned AO rejected the explanation of the assessee and stated that cooperative societies as defined under section 2 (19) of the act does not support the case of the assessee and therefore the interest income earned by the assessee of ₹ 1,472,931 is not eligible for deduction because these banks are neither cooperative society. It was further stated that as per the finance act 2006 deduction from income of cooperative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in appeal before us. Shri Virendra Mishra from the side of the assessee submitted that assessee's investment is eligible for deduction of section 80 P (2) (d) of the act. 08. The learned senior DR vehemently supported the order of the learned lower authorities and submitted that assessee is not eligible for deduction under section 80 P (2) (d) of the act. It was stated that the investment is made in the cooperative banks and not operative societies and therefore the orders of the lower authorities are sustainable. 09. We have heard the rival contentions and perused the orders of the lower authorities. The simple controversy involved in this appeal is that assessee is a co-operative society, has placed certain funds with cooperative ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cooperative society means a cooperative society registered under the cooperative societies act, 1912 or under any other law for the time being in force in any State for the registration of cooperative societies. Thus if the cooperative banks are falling into the definition of 'cooperative societies', naturally the deduction would be eligible to the assessee under section 80 P (2) (d) of the act. Therefore it needs to be examined that whether the cooperative banks are operative societies under section 2 subsection (19) of the act are not. 13. Section 2 (10) of the Maharashtra cooperative societies act defines Co-operative bank means a Co-operative society which is doing the business of banking as defined in clause (b) of sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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