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TMI Blog2024 (7) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of M/s. Ratnatray Gramin Bigar Sheti Sah. Pat Sanstha Maryadit [ 2018 (12) TMI 1926 - ITAT PUNE ] taken view in favour of the assessee following the judgment of Tumkur Merchants Souharda Credit Cooperative Ltd. [ 2015 (2) TMI 995 - KARNATAKA HIGH COURT ] Thus we are of the considered opinion that the interest income earned on fixed deposits with cooperative bank/scheduled bank partakes character of the business income, which is eligible for deduction u/s 80P(2)(a)(i) of the Act. Therefore, we direct the Assessing Officer to allow the exemption u/s. 80P(2)(a)(i) even though not eligible for deduction u/s. 80P(2)(d) of the Act. Thus, the grounds of appeal filed by the assessee stand allowed. - Shri Inturi Rama Rao, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income earned out of the deposits made with Cooperative banks as well as Nationalised banks. 4. Being aggrieved, an appeal was filed before the CIT(A)/NFAC who vide impugned order confirmed the action of the Assessing Officer. 5. Assailing the order of CIT(A)/NFAC, the appellant society is in appeal before the Tribunal. 6. We heard the rival submissions and perused the material on record. The only issue that arises for our consideration is whether or not the appellant society is eligible for deduction of interest income earned out of deposits made with Cooperative banks/Nationalised banks u/s. 80P(2)(d)/80P(2)(a)(i) of the Act. We find that this issue is no more res integra by virtue of catena of decisions of the Coordinate Benches of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v CIT [(2017) 396 ITR 371 took a view that such interest income is attributable to the activities of the society and, therefore, eligible for exemption u/s 80P(2)(a)(i) of the Act. Similar view has been taken by the Hon ble Calcutta High Court in the case of PCIT vs. Gunja Samabay Krishi Unnayan Samity Ltd., 147 taxmann.com 518 (Calcutta) and the Hon ble Madras High Court in the case of Chennai Central Cooperative Bank Ltd. vs. ITO, 148 taxmann.com 17 (Madras). The Coordinate Bench of Pune Benches in the case of M/s. Ratnatray Gramin Bigar Sheti Sah. Pat Sanstha Maryadit Vs. ITO (ITA Nos.559/560/PUN/2018, dated 11-12-2018) taken view in favour of the assessee following the judgment of Hon ble Karnataka High Court in the case of Tumkur Me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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