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TMI Blog2021 (11) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee cooperative society with any other cooperative society. In the present case, the reasoning given by the lower authorities for denial of exemption u/s 80P(2)(d) is that interest was received from cooperative bank has no legs to stand as a cooperative bank is also a cooperative society. This issue was considered in the case of CIT vs. Totagars Cooperative Sale Society,[ 2017 (7) TMI 1049 - KARNATAKA HIGH COURT] wherein referring to case of Totgars Co-operative Sales Society Ltd. [ 2010 (2) TMI 3 - SUPREME COURT] held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income of Rs. 1,81,360/- after denying the claim of deduction by holding that the provisions of section 80P(2)(d) of the Act are not applicable to the facts of the present case of the assessee. 3. Being aggrieved by the above action of the Assessing Officer, an appeal was filed before the ld. CIT(A), who vide impugned order denied the benefit of deduction u/s 80P(2)(d) of the Act placing reliance on the decision of the Hon ble Supreme Court in the case of Totagars Co-operative Sales Society Ltd. vs. ITO, 188 taxmann.com 282 (SC) 4. Being aggrieved by the above decision of the ld. CIT(A), the assessee is in appeal before us in the present appeal. 5. The ld. AR for the assessee society submits that it is a purely cooperative credit socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon ble High Court referring to the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. 8. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 wherein the Tribunal after making reference to the decisions of the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the eligibility of deduction u/s. 80P(2)(d) of the Act on interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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