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TMI Blog2023 (4) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... ative society and is liable to be deducted from the gross total income u/s 80P and also allowed the deduction u/s 80P(2)(a)(i) of the Act. We have also perused the decision of Jaoli Taluka Sahkari Patpedhi Maryadit [ 2015 (9) TMI 170 - ITAT MUMBAI] and Gandhinglaj Taluka Patpedhi Ltd. [ 2015 (12) TMI 287 - ITAT MUMBAI] - Thus direct the A.O to allow the claim of deduction of the assessee u/s 80P(2)(a)(i) of the Act. Decided in favour of assessee. - SHRI AMARJIT SINGH, ACCOUNTANT MEMBER For the Appellant : Shekhar Patwardhan For the Respondent : C.T. Mathews ORDER PER AMARJIT SINGH (AM): The present appeal filed by the assessee is directed against the order passed by NFAC, Delhi dated 21.11.2022 for A.Y. 2017-18. The assessee has raised th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovide credit to the members of the society and interest derived from depositing the surplus funds from the banks is eligible for deduction u/s 80P(2)(a)(i) of the Act. In support of his contention he has placed reliance on the various decision of ITAT, Mumbai and other courts: 1. Karnataka High Court in the case of Tumkur Merchants Souharda Credit Co-operative Ltd. Vs. ITO 2. Navbharat Urban Co-operative Credit Society Ltd. Vs. CIT ITAT Mumbai SMC Bench 3. Borivali Jankalyan Sahakari Patpedhi Ltd Vs.ITO,ITAT Mumbai SMC Bench 4. Makr Tower A and B Co-operative Housing Society Ltd. ITAT Mumbai E Bench 5. Nashik Road Nagari Sahakari Patsanstha Ltd. Vs. ITO ITAT Pune B Bench 6. Sangli Zilla Dekhrekh Sahakari Society Ltd. VS. ITO ITAT Pune SMC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the decision of ITAT, Mumbai in the case of Jaoli Taluka Sahkari Patpedhi Maryadit Vs. ITO vide (2017) 83 taxman.com 247 (Mum) and the decision of ITAT in the case of Gandhinglaj Taluka Patpedhi Ltd. Vs. ITO15(1)(2) (2017) 83 taxmann.com 40 (Mum Trib). The relevant part of the decision of ITAT, Mumbai in the case of Jaoli Taluka Sahkari Patpedhi Maryadit as mentioned supra is reproduced as under: 8. The Ld D.R. on the contrary, placed strong reliance on the order passed by Ld CIT(A). 9. I heard the parties and perused the record. In my view, the decision rendered by Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd (supra) squarely applies to the facts of the present case. In the case befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for earning such interest income. The income so derived is the amount of profits and gains of business attributable to the activity of carrying on the business of banking or providing credit facilities to its members by a co-operative society and is liable to be deducted from the gross total income under Section 80P of the Act. 9. In this context when we look at the judgment of the Apex Court in the case of M/s. Totgars Co-operative Sale Society Ltd., on which reliance is placed, the Supreme Court was dealing with a case where the assessee-Cooperative Society, apart from providing credit facilities to the members, was also in the business of marketing of agricultural produce grown by its members. The sale consideration received from market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hra Pradesh High Court in the case of CIT v. Andhra Pradesh State co-operative Bank Ltd., [2011] 200 Taxman 220/12 taxmann.com 66. In that view of the matter, the order passed by the appellate authorities denying the benefit of deduction of the aforesaid amount is unsustainable in law. Accordingly it is hereby set aside. The substantial question of law is answered in favour of the assessee and against the revenue. Hence, we pass the following order: 10. Respectfully following the decision rendered by Hon'ble Karnataka High Court, referred above, I set aside the order of Ld CIT(A) on this issue and direct the AO to allow deduction u/s 80P of the Act. After perusing the aforesaid decision of the ITAT it is noticed that issue raised in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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