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TMI Blog2024 (5) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... with cooperative banks as well as schedule bank qualifies for deduction both under the provisions of section 80P(2)(a)(i) and section 80P(2)(d) of the Act, therefore, the reasoning given by the lower authorities on this issue cannot be accepted. Thus, we direct the AO to allow deduction u/s 80P(2)(a)(i) and 80P(2)(d) in respect of interest income earned from cooperative bank/scheduled bank. The grounds of appeal filed by the assessee stands allowed. - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER For the Assessee : None For the Revenue : Shri RY. Balawade ORDER PER INTURI RAMA RAO, AM: These three appeals filed by the assessee are directed against separate orders of the National Faceless Appeal Centre (NF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arnataka) and the decision of the Hon ble Gujarat High Court in the case of Katlary Kariyana Merchant Sahkari Sarafi Mandali Ltd. Vs. ACIT (2022) 140 taxmann.com 602 (Gujarat). 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. When the matter was called, none appeared on behalf of the appellant despite due service of notice of hearing. Therefore, we proceed to dispose of the appeal ex parte qua the assessee. 6. On the other hand, ld. Sr. DR placing reliance on the orders of the lower authorities and the decision of Bangalore Bench of Tribunal in the case of M/s. Bantwal Public Employees Consumers Co.op Society Vs. ITO ITA No. 903/Bang/2023, dt. 18.12.2023 submits that no interference is called for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption u/s 80P(2)(d) of the Act is that interest was received from cooperative bank has no legs to stand as a cooperative bank is also a cooperative society. This issue was considered by the Hon ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon ble High Court referring to the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. 9. Even the decision of Pune Bench of the Tribunal in the case of Sant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t income and that of the Hon'ble Delhi High Court in Mantola Cooperative Thrift Credit Society Ltd. Vs. CIT (2014) 110 DTR 89 (Delhi) not allowing deduction u/s. 80P on interest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that even the interest income earned by cooperative society on deposits made out of surplus funds with cooperative banks as well as schedule bank qualifies for deduction both under the provisions of section 80P(2)(a)(i) and section 80P(2)(d) of the Act, therefore, the reasoning given by the lower authorities on this issue cannot be accepted. Thus, we direct the Assessing Officer to allow deduction u/s 80P(2)(a)(i) and 80P(2)(d) in respect of interest income earned from cooperative bank/scheduled bank. The grounds of appeal filed by the assessee stands allowed. A.Yrs. 2018-19 2020-21 : 10. The facts stated in ITA No. 726/PUN/2024 are identical even in appeal bearing ITA Nos. 727/PUN/2024 728/PUN/2024. The finding given in ITA No. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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