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TMI Blog2024 (7) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction provided by any monitoring limit or percentage ratio or fraction. Thus, claim of deduction under section 80P(2)(d) is also not classified as incorrect claim. Thus, the adjustment of disallowance of deduction under that section is not permissible adjustment provided under section 143 (1) of the act. Therefore the intimation passed under section 143 (1) is not sustainable. Deduction u/s 80P - On the merits of the case, provisions of section 2 (19) define a co-operative society as under:- co-operative society 97 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 Thus, for the defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nzil Padvekar For the Revenue : Shri Dr. Kishor Dhule ORDER PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by samta cooperative housing society Ltd for assessment year 2021 22 against the appellate order passed by the additional CIT (A) 3, Bangalore (the learned CIT A) dated 23/1/2024 wherein the appeal filed by the assessee against the order passed under section 143 (1) of the income tax act 1961 (the act) by central processing Centre Bangalore dated 21/12/2022, was dismissed disallowing the deduction under section 80P(2)(d) of the act, raising following grounds a. On the facts and in law, the Ld. CIT(A) erred in confirming the disallowance of Rs. 58,68,245/- of interest income received from Co- operative Banks. The Ld. CIT(A) has fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the sub-section so that this category of Cooperative Societies cannot claim the Deduction. d. On the facts and in law, the Ld. CIT(A) has failed to appreciate that as per By-laws of the Appellant Society read with Section 70 and the Notification and Circulars under the Maharashtra Co-operative Act, it is incumbent on the Appellant society to invest its surplus funds in a Central Bank or the State Co-operative Bank. Thus, interest earned on such investment is allowable as deduction under section 80P(2)(d) of the Act as held in Pathare Prabhu Co-operative Housing Society Ltd vs Income-tax Officer [2023] 153 taxmann.com 714 (Mumbai Trib.). e. On the fact and in law the mandatory requirement for cooperative societies to maintain certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on interest income earned by the assessee from co-operative banks was denied. Assessee preferred appeal before the learned CIT A wherein the appeal of the assessee was dismissed. Therefore assessee has preferred appeal before us. 03. The learned authorised representative submitted a paper book containing several judicial precedent and stated that the issue is squarely covered in favour of the assessee. 04. The learned departmental representative supported the order of the learned CIT A. 05. We have carefully considered the rival contention and perused the orders of the lower authorities. The facts clearly shows that assessee has earned interest on fixed deposit receipt amounting to ₹ 5,608,072 from various cooperative banks. Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the return; (v) disallowance of deduction claimed under 71 [section 10AA or under any of the provisions of Chapter VI-A under the heading C. Deductions in respect of certain incomes , if] the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: 08. The disallowance of deduction under chapter VI A can only be made under section 143(1)(a) (v) of the act only on account of non-furnishing of return of income within the due date of filing of the return. This is not the reason. 2. Claim of the assessee cannot be said to be an incorrect claim in view of the explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cooperative societies act is applicable. 013. THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960, Defines cooperative banks as per section 2 (10) of that Act as under : - 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 X. 014. Thus it is apparent that cooperative banks are also a co-operative society. Only difference is that those cooperative societies are doing the business of banking as per the banking companies act 1949. Therefore, merely because these cooperative societies cooperative ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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