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TMI Blog2023 (9) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... derived from a Co-operative Society, thus no deduction is allowable - HELD THAT:- Issue is covered by the decision of Sabarkanta District Co-operative Milk Producer s Union Limited [ 2014 (6) TMI 977 - GUJARAT HIGH COURT] appears to be justifiable as the interest earned on Fixed Deposits from Co-operative Bank deposits is coming under the purview of Section 80P(2)(d) of the Act. Deduction claimed u/s. 80P(a)(ii) in respect of cottage industry - The manufacturing activities of the orders received in handlooms and handicrafts are assigned to its member societies/workers and the assessee society had power to direct, supervise and control over manufacturing carried out by the members of assessee society. The Circular cited by the Ld. AR also a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. The action of the lower authorities is in clear breach of law and principles of natural Justice and therefore deserves to be quashed. 5. The Ld. CIT (A) has erred in law and on facts of the case in confirming action of the Ld. AO in levying interest u/s. 234A/B/C/D of the Act. 6. The Learned CIT (A) has erred in law and on facts of the case in confirming action of Ld. AO in levying penalty u/s. 271(1)(c) of the Act. 3. The assessee filed its return of income on 26.11.2014 declaring total income of Rs. 11,42,400/-. The assessee claimed deduction under Section 80P(2)(d) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta District Co-operative Milk Producer s Union Limited vs. CIT in Tax Appeal No. 473 of 2014. The Ld. AR submitted that the assessee earned interest from Gujarat State Co-operative Bank Limited which is a Co-operative Society and, therefore, the assessee qualifies for deduction under Section 80P(2)(d) of the Act. As regards to ground no. 3 relating to deduction claimed under Section 80P(a)(ii) amounting to Rs. 17,93,171/- in respect of Cottage Industries Limited, the Ld. AR submitted that similar issue in Assessment Year 2015-16 has been decided in favour of the assessee and in fact the interpretation given by the Assessing Officer as well as the CIT (A) in respect of the industry will not be applicable in assessee s case as the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Co-operative Bank deposits is coming under the purview of Section 80P(2)(d) of the Act . Thus, ground no. 2 is allowed. As regards to ground no. 3, the contention of the Ld. AR that is applicable in the assessee s case as the assessee takes up the handloom orders from outside and various members of the Society. The manufacturing activities of the orders received in handlooms and handicrafts are assigned to its member societies/workers and the assessee society had power to direct, supervise and control over manufacturing carried out by the members of assessee society. The Circular cited by the Ld. AR also applies in assessee s case and, therefore, ground no. 3 is allowed. As regards to ground nos. 4, 5 6, the same are consequential and h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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