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TMI Blog2024 (7) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank Ltd [ 2021 (1) TMI 488 - SUPREME COURT] also held that such a distinction of nominal/associate members would not bar an assessee from claiming sec.80P deduction. So far as the Revenue s endeavour to highlight the assessee s interest income derived from the foregoing institutions is concerned, this tribunal in The Hukkeri Taluk Agri Produce Co-operative Marketing Society Ltd., Dist. Belagavi [ 2021 (11) TMI 1198 - ITAT PANAJI] has already settled the issue regarding interest income(s) derived from investment(s) made in former category of cooperative institution(s) in assessee s favour and against the department. The outcome would hardly any different regarding interest income derived from nationalized bank(s) in light of The Vaveru Co-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce coming from the Revenue side that both the learned lower authorities have disallowed the assessee s sec.80P deduction claim of Rs. 16,97,704/- representing interest income from cooperative society(ies)/cooperative bank(s) and public sector undertaking bank(s). The Revenue vehemently argued that not only the assessee is a Souharda cooperative society but also it had derived it s impugned interest income from associate/nominal members carrying not voting rights and therefore, case law Citizen Coopetative Society Ltd vs. CIT (2017) 84 Taxmann. Com 114 (SC) bars such a relief. 4. We find no merit in the Revenue s submissions supporting the impugned disallowance(s). We wish to make it clear first of all that case law [2022] 134 taxmann.com 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) vide order dated 24.10.2014 passed u/s 143(3) of the Act at a total 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 Cooperative 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 asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This issue was considered by the Hon ble Karnataka High Court in 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 Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 80P on interest income earned from banks. Both the Hon'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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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