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TMI Blog2024 (8) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest earned on deposit with Co-operative banks are eligible for deduction under section 80P(2)(d) - Decided in favour of assessee. - Shri Pawan Singh, Judicial Member And Shri Bijayananda Pruseth, Accountant Member For the Appellant : Shri Bipin Jariwala, AR For the Respondent : Shri J. K. Chandnani, Sr. DR ORDER PER BIJAYANANDA PRUSETH, AM: 1. This appeal by the appellant emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, the Act ) dated 12.12.2023 by the Learned Commissioner of Income-tax (Appeals), [in short, Ld. CIT(A) ] National Faceless Appeal Centre, Delhi, for the assessment year (AY) 2017- 18. 2. The grounds of appeal raised by the assessee are as under: 1. On the facts and in the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other sources of income. 6. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper. 7. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal. 3. The facts of the case in brief are that the assessee is a co-operative credit society, engaged in banking business and providing credit facilities to its members. The assessee filed its return of income on 17.10.2017, declaring total income of Rs. Nil. The case was selected for limited scrutiny to examine the issue of deduction under Chapter VI-A. The assessee in its computation of income claimed deduction of Rs. 29,86,311/- on account of interest earned on fixed de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest income earned from a schedule bank. Aggrieved by the order of Ld. CIT(A), the assessee is in further appeal before this Tribunal. 5. We have heard the submissions of the Learned Authorized Representative (Ld. AR) of the assessee and the learned Senior Departmental representative (Sr DR) for revenue. The ld AR for the assessee submitted that section 80P(2)(d) of the Act allows full deduction of an income by way of interest or dividends derived by the Co-operative Society from its investment with any other Co-operative Society. The assessee is Co-operative Credit Society and funds are invested only in fixed deposit and interest income earned from the fixed deposit with Surat District Co-Operative Bank, is eligible for deduction u/ 80P( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the rival submissions of both the parties and perused the orders of the lower authorities carefully. The dispute relates to deduction claimed under section 80P(2)(d) of the Act with regard to interest earned on fixed deposit with Surat District Co-operative Bank. We find that issue related with the deduction under section 80(P)(2)(d) is squarely covered by the series of decisions of jurisdictional High Court in Surat Vankar Sahakari Sangh Ltd. vs. ACIT ( supra) as well as by decisions of this Tribunal in favour of assessee including in the case of Vishal Co-operative Housing Services Society Limited vs. ITO, in ITA No.886/SRT/2023, dated 22.02.2024 (Surat Trib.), wherein it was held that Co-operative Banks are primarily the Cooperati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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