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TMI Blog2024 (8) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... 0P of the Act, but however, as a cooperative bank continued to be a cooperative society registered under the Cooperative Society Act, therefore, the interest income earned by a cooperative society from its investment held that cooperative bank would be entitled for claim of deduction u/s 80P (2) (d). We direct the AO to allow the alternative claim of deduction u/s 80P (2) (d) to the assessee in respect of interest earned/dividend from investment made with the cooperative bank, therefore, the appeal of the assessee is allowed. - SHRI AMARJIT SINGH, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER, For the Appellant by : Madhur Agarwal For the Respondent by : H.M. Bhatt ORDER PER AMARJIT SINGH (AM): The present appeal filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the whole amount as deduction u/s 80P (2) (a) (i) of the Act. The AO further observed that assessee has credited interest receipt of Rs.152,42,308/- and dividend of Rs.45,37,500/- received from cooperative banks in its profit and loss account. The AO observed that earning interest/dividend from investment in Cooperative Bank was not the object of the business of the assessee therefore, the same was no eligible for deduction in terms of provision of Sec. 80P (2) (a) (i) of the Act. The assessing officer also observed that assessee was not eligible for deduction u/s 80P(2)(d) of the Act in view of the provision of Sec. 80P(4) inserted by the Finance Act 2006 w.e.f 01.04.2007 which specifically excludes cooperative bank from the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee without any justification. On the other hand, the ld. D.R supported the order of lower authorities. 5. Heard both the sides and perused the material on record. The assessee is a cooperative society registered under the Maharashtra Cooperative Society Act. The AO and CIT(A) has denied deduction under Section 80P (2) (a) (i) and 80P(2)(d) of the Act as discussed supra in this order. The AO was of the view that deduction u/s 80P(2)(d) is not available to any co-operative society when investment was made in any cooperative bank except two cooperative bank mentioned in the sub-section (4) of Section 80P. We consider that assessee society is not a co-operative bank and it is engaged in providing credit facilities to its members. The socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a cooperative bank continue to be a cooperative society registered under the Co-operative Society Act. Even the interest income derived by a cooperative society from its investment held with a cooperative bank would be entitled for claim of deduction u/s 80P (2) (d) of the Act as held in the various decisions of the coordinate benches of the ITAT Mumbai. 6. Some of the decision of the ITAT wherein the claim of deduction u/s 80P(2)(d) was allowed on the interest income earned from deposit with cooperative bank are as under: (i) Mittal Park Cooperative Housing Society Ltd. Vs. Asst. Director of Income Tax, Mum, W (125) (95) CPC, Bengaluru, (Ld. ADIT). (ii) Mittal Park Cooperative Housing Society Vs. ITO, Ward 25 (3)(1), Mumbai (iii) Kaliandas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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