9911796707
TMI Blog2024 (7) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 80(P) (2) of the Income Tax Act. Such finding of fact is not required to be interfered with by this Court in exercise of powers under Article 136 of the Constitution of India. Even otherwise on merits also and taking into consideration the CBDT Circular and even the definition of Bank under the Banking Regulation Act, the respondent/Assessee cannot be said to be co-operative Bank/Bank and therefore, section 80(P) (4) shall not be applicable and that the respondent/Assessee shall be entitled to exemption/benefit under section 80(P) (2) . Decision of the Ld. CIT(A) in denying the deduction to the assessee is perverse to the facts on record and against the spirit of law, in view of the provisions of sub section 4 of section 80(P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd; Nawanshahr and the Citizen Urban Co-op. Bank Ltd; Nsr. [other co-operative societies] in the shape of FDR and Saving Bank Account. The assessee received interest from the Banks for the assessment year to the tune of Rs. 70,51.922/- and out of the said interest income for a sum of Rs.44,13,711/-, the assessee/appellant had been denied deduction under section 80-P(2)(d) of the Income Tax Act, 1961, by the Ld. AO while applying the provisions of sub- section 4 of section 80-P and made the addition of the said interest income of Rs.44,13,711/- to the returned income of the assessee. 4. The Ld. CIT(A) while confirming the action of the Ld.AO has misdirected himself while upholding the action of the Ld AO in applying the law of the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank], would be duly entitled for deduction under sec.80P(2)d of the Act. 5. It is further clarified that Co-operative banks are often regulated under both the banking and cooperative legislation. They are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Cooperative Societies) Act, 1965. Cooperative Banks are registered as Cooperative Societies under the Cooperative Societies Acts of the concerned States or the Multi-State Cooperative Societies Act. They are licensed by RBI to do banking business. 6. In the present case, the interest income is received by the appellant from entities enjoying the status of a co-operative society as per law. The issue is settled by the principle of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the Jainpur Multipurpose Coop. Society Ltd; Vs. Income Tax Officer, Nawanshahr in ITA NO: 68/Asr/2024 [Annexure C , Pages 15- 181] 8. Following the principle of law laid down by the Hon'ble Supreme Court (Supra) and our own judgment (Supra), we hold that the decision of the Ld. CIT(A) in denying the deduction to the assessee is perverse to the facts on record and against the spirit of law, in view of the provisions of sub section 4 of section 80(P) of the Income Tax Act. Therefore, the impugned order is annulled and accordingly, the deduction ofRs.54,00,164/- claimed by the appellant u/s 80P(2)(d) is allowed. 9. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 26.06.2024 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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