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TMI Blog2024 (8) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... d with other cooperative societies shall be exempt from the total income of a cooperative society. Therefore, what is relevant for claiming of deduction u/s 80P(2)(d) is that interest income should have been derived from the investment made by the assessee cooperative society with any other cooperative society. This issue was considered in the case of CIT vs. Totagars Cooperative Sale Society, [ 2017 (1) TMI 1100 - KARNATAKA HIGH COURT] wherein after referring to the decision of Totgar s Co-operative Sale Society Ltd.Vs. ITO ( 2010 (2) TMI 3 - SUPREME COURT] held that the ratio of decision of the Hon ble Supreme Court is not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,075/- is credited towards the interest received from various Cooperative Banks. The AO was of the opinion that the interest income of Rs. 87,74,075/- earned is clearly not attributable to the activity of the appellant society of providing credit facilities to its Members or its operational income, thus the income does not qualify for deduction u/s. 80P(2)(d) of the Act. Accordingly, he brought to tax the sum of Rs. 87,74,075/- treating the same as Other Income u/s. 56 of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A)/NFAC who vide impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before the Tribunal. 5. When the matter was called on, none appeared on behalf of the appellant de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 392 ITR 74 (Karn) wherein the Hon ble High Court after referring to the decision of the Hon ble Supreme Court in the case of Totgar s Co-operative Sale Society Ltd.Vs. ITO (2010) 322 ITR 283(SC) held that the ratio of decision of the Hon ble Supreme Court is 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. In the light of this discussion, I am of the considered opinion that the interest income earned by cooperative society on deposits made out of surplus funds with cooperative banks qualifies for deduction under the provisions of section 80P(2)(d) of the Act. Therefore, the solitary ground raised by the appellant stands allowed. 9. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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