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TMI Blog2024 (8) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... Chauhan, Judicial Member For the Assessee : Shri. Bhavesh Jain For the Department : Shri. Dr. Kishor Dhule CIT DR ORDER PER BENCH: 1. Both these appeals are filed by the appellant/assessee against the orders dated 25.01.2024 and 29.01.2024 of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the CIT(A) ], passed under section 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act ] for the A.Y. 2015-16 and 2018-19, respectively, wherein the appeal of the assessee for the A.Y. 2015-16 and 2018-19 has been dismissed on the ground that the assessee is not interested in representing his case and he has nothing to say on the merit of the case and accordingly the Ld. CIT(A) dismissed the appeal without any discussion on the merits of the case and has refused to admit the appeals. 2. Both the appeals are taken up together for disposal by this common order because it pertains to the same parties and the issue involved is also the same i.e., disallowance of benefits u/s. 80P(2)(d) of the Act to the assessee by the Ld. AO in the order dated 21.11.2017 and 30.04.2021 for A.Y. 2015-16 and 2018-19. The case perta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed in limine. 6. Aggrieved by the order of the Ld. AO as well as the Ld. CIT(A), the assessee is in appeal before us and has raised following grounds for A.Y. 2015-16: 1. In the facts and circumstances of the case and especially in law, the Ld. AO has erred by disallowing deduction u/s 80P(2)(d) of Rs. 1,17,56,267/-, being interest income from Co-operative Banks which are also Co-operative Society, without appreciating/interpreting the evidences filed with AO and by wrongly interpreting the said section and ignoring established cases. 2. In the facts and circumstances of the case and in law, the AO has erred in mixing up and mis-interpreting the law and provisions of sec 80P(2)d vis-a-vis 80P(4) of Income Tax act 1961, ignoring the status and nature of the appellant and thereafter denying benefit of Sec. 80P(2)(d) to the appellant. 3. In the facts circumstances of the case and in law, the Ld CIT (A) erred by dismissing the appeal without any discussion on merit of the case ignoring the mandate of section 250(6). 4. In the facts circumstances of the case and in law, the AO has erred by relying on case laws/citations, which are not applicable to the appellant's case. 7. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided by various benches including judgment of G Bench, Mumbai in ITA No. 542/MUM/2024, ITA No. 544/MUM/2024 and ITA No. 543/MUM/2024, Shah and Nahar Industrial Premises A2 Co-op. Soc. Ltd. Vs. National e-Assessment Centre, New Delhi Asst. CIT, Circle-22(3), order dated 21.06.2024. The finding returned by us in the judgment of Shah and Nahar Industrial Premises A2 Co-op. Soc. Ltd. referred (supra) is relevant and reproduced as under: 4. The ld. Authorized Representative (AR) of the assessee submitted that the AO has denied the deduction under section 80P(2)(d) of the Act for the reason that the deduction is claimed towards interest received from deposits with Co-operative Bank. The ld. AR further submitted that the term cooperative society is much wider and includes a Cooperative Bank also and that this proposition has been upheld in various judicial pronouncements. The ld. AR also submitted that the Co- ordinate Bench has been consistently holding that interest received from deposits with Co-operative Bank is also eligible for deduction under section 80P(2)(d) of the Act and in this regard placed reliance on the decision of the Co-operative Bank in the case of Pathare Prabhu Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) ..... (b) ..... (c) ..... (d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-operative society, the whole of such income; 7. Thus, for the purpose of provisions of section 80P(2)(d) of the Act, two conditions are required to be cumulatively satisfied- (i) income by way of interest or dividend is earned by the Co-operative Society from the investments, and (ii) such investments should be with any other Co-operative Society. Further, the term cooperative society is defined under section 2(19) of the Act as under: (19) co-operative society means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of co-operative societies ; 8. In the present case, there is no dispute that the assessee is a Cooperative Housing Society. Thus, if any income as referred to in sub-section (2) to section 80P of the Act is included in the gross total income of the assessee, the same shall be allowed as a deduction. It is pertinent to note that since the assessee is registered under the Maharashtra Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observations of the Co-ordinate Bench are extracted below: 8. We have considered the submissions made. As noticed earlier, the issue stands concluded by the decisions of this Tribunal as referred to above. Even the Hon ble Madras High Court in the case of Thorapadi Urban Co-op. Credit Society Ltd. (supra) has held thus in paras 8 to 10 of its order: - 8. The main issue is to decide in the present case is as to whether the petitioner Co-operative Society is entitled for a deduction for the interest income received from the Co-operative Bank? 9. It would be appropriate to extract hereunder the relevant portion of Section 80P(2)(d). 80 P. Deduction in respect of income of co- operative societies: (1) (2) The sums referred to in sub-section (1) shall be the following, namely: - (a) to (c)........... (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investment with any other co-operative society, the whole of such income 9. A reading of the above said provision makes it clear that in the event if any Co-operative Society derived income by way of interest from investment made in any other Co-operative Society the whole such interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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