9911796707
TMI Blog2023 (9) TMI 1515X X X X Extracts X X X X X X X X Extracts X X X X ..... 3, which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ), dated 10.12.2019. 2. The grounds of appeal raised by the assessee are as follows: 1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 10,99,260/ in non-granting the deduction of interest income claimed u/s.80P(2)(d) of the Income Tax Act, 1961 of Rs. 26,48,946/- of the I.T. Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, it is ought to have be held that the deduction u/s 80P(2)(d) of the Act be allowed to the co-operative society in respect of interest income received from co-operative banks, irrespective of the facts whether it is held as income from other sources or under any other source of income. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or (v) the processing, without the aid of power, of the agricultural produce of its members, or (vi) the collective disposal of the labour of its members, or (vii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, the whole of the amount of profits and gains of business attributable to any one or more of such activities : Provided that in the case of a co-operative society falling under subclause (vi), or sub-clause (vii), the rules and bye-laws of the society restrict the voting rights to the following classes of its members, namely: (1) the individuals who contribute their labour or, as the case may be, carry on the fishing or allied activities; (2) the co-operative credit societies which provide financial assistance to the society; (3) the State Government; (b) in the case of a co-operative society, being a primary society engaged in supplying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its investment in another Co-operative Society. There are no definition of Co-operative Society mentioned in this clause i.e. 80P(2)(d). Further, in the section 80P(4) of the IT Act, there are mention of Co-operative society is inserted and as per that mention the provisions of the section 80P cannot be applicable to Co-operative Bank. The provision of Section 80P also include clause 80P(2)(d) of the IT Act. In view of the fact that Co-operative Society has not been defined in section 80P or in clause 80P(2)(d). The word Co-operative Society should be interpretate in the same meaning for whole of the section 80P which also include 80P(2)(d). Therefore, the provisions of this section cannot be applicable to Co-operative Banks. The word Co-operative Society has been used in two time in clause 80P(2)(d). As per the rule of interpretation, the word Co-operative Society should be construed/interpreted in the same meaning for both words of Cooperative Society used in 80P(2)(d). In absence of any specific definition of Co-operative Society, mentioned in section SOP, the interpretation of both word (Co-operative Society) used in section 80P(2)(d) cannot be construed in two different meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f deduction under Chapter VIA. The assessee filed its reply and explained the admissibility of deduction under section 80P, specifically about the deduction of Rs. 2.01 Crore claimed under section 80P(2)(d). No doubt, there is no reference about the examination of such issue, however, admittedly the issue was examined by the assessing officer. We further find that the ld PCIT revised the assessment order on the issue of deduction under section 80P(2)(d). On carful considerations of grounds of appeal and the facts of the case, we find that on similar grounds of appeal on similar set of facts, this combination has this Tribunal allowed similar relief to that assessee, thus in our view, the grounds of appeal raised by the assessee are square covered in favour of assessee and against the revenue. For completeness of order, the relevant part of decision in Bardoli Vibhag Gram Vikas Co-op Credit Society Ltd. (supra) is extracted below: 11. We have considered the rival submission of both the parties. We have also deliberated on the written submission filed by learned AR of the assessee and various case laws relied by him during his submission. We have also gone through the various documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Further, the Hon'ble Jurisdictional High Court in Surat Vankar Sahakari Sangh Ltd., v. ACIT [2016] 72 taxmann.com 169 (Guj) held that assessee co-operative society is eligible for deduction under section 80P(2)(d) in respect of gross interest received from cooperative bank without adjusting interest paid to said bank. 16. The Co-ordinate Bench of Rajkot Tribunal in Surendarnagar District Co-operative Milk Producer Union Ltd., v. DCIT [2019] 111 taxmann.com 69 (Rajkot Tribunal) also held the assessee cooperative society could not claim benefit under section 80P(2)(d) in respect of interest earned by it from deposits made with nationalized/private banks, however, the said benefit was available in respect of interest earned and on deposits made with cooperative bank. Thus, in view of the aforesaid legal discussion we are of the considered view that order passed by Assessing Officer is not erroneous, though it may be prejudicial to the interest of the Revenue. Therefore, the twin conditions that orders is erroneous and so far as prejudicial to the interest of revenue, as prescribed under section 263 is not fulfilled in the present case. 17. Moreover, we have seen that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
