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TMI Blog2024 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... see is entitled for deduction under section 80P(2)(d) towards income derived from deposits with Co-operative Bank for AY 2017-18, 2018-19 2020-21. Accordingly, the AO is directed to allow the deduction claimed by the assessee for these AYs It is evident from the facts that in the F.Y. 2012-13 relevant A.Y. 2013-14, the assessee earned interest income of Rs. 18,12,581/-. Whole of this interest is earned from the savings and fixed deposit maintained with the cooperative bank i.e., The Mumbai District Central Co-operative Bank NKGSB Co-operative Bank. The assessee claimed the interest amount as deduction u/s. 80P(2)(d) of the Act but the same was not allowed by the lower authorities i.e., an Income Tax Officer u/s. 143(3) of the Act and in appeal by the Ld. CIT(A) u/s. 250 of the Act vide impugned order. For the above reasons, we therefore order that the assessee is entitled for deduction u/s. 80P(2)(d) of the Act towards the income received from deposit with Co-operative Bank. Assessee appeal allowed. - Shri. Narendra Kumar Billaiya, Accountant Member And Shri. Raj Kumar Chauhan, Judicial Member For the Assessee : Shri. Vishal Gala CA For the Department : Shri. Sunil K. Agwane (Sr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) confirmed the such addition done by the Income Tax officer in the impugned order dated 28.03.2024. 5. Aggrieved by the impugned order, the assessee is in appeal before us. We have heard the Ld. AR on behalf of the assessee and Ld. DR on behalf of the revenue. The Ld. AR submits that the various coordinate bench of ITAT has deleted the addition made by the revenue authority in similar cases and assessee has been extended benefit of Section 80P(2)(d) and interest income earned from a co-operative bank has been permitted to be deducted from the total income. The Ld. AR has relied upon following cases: a. ITA No. 2547/MUM/2022, Regency Premises Co-op. Hsg. Society Ltd. Vs. DCIT/ACIT, CPC, (A. Y. 2020-21), dated 17.01.2023. b. ITA No. 1972/MUM/2022, Bhag Co-op. Hsg. Society Ltd. Vs. Asst. CIT CPC, (A.Y. 2020-21), dated 30.09.2022. c. ITA No. 1950/MUM/2019, Om Sudarshan CHS Ltd., Mumbai Vs. ITO 17(2)(5), Mumbai, (A.Y. 2014-15), dated 29.10.2020. d. ITA No. 374/MUM/2018, Shree Mahadeshwar Sahakari Patpedhi Maryadit Vs. Income Tax Officer 21(2)(2), (A.Y. 2013-14), dated 31.03.2017. e. ITA No. 1343/MUM/2017, Sea Green Co-operative Housing Society Vs. ITO 21(3)(2), Lalbaug, Mumbai, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 80P(2)(d) of the Act in respect of interest income received from the Co-operative Banks. The assessee is a Cooperative Housing Society and during the assessment year 2015-16 earned interest income of Rs. 5,74,097 from the investments made in Saraswat Cooperative Bank Ltd and Maharashtra State Co-operative Bank Ltd. 6. Before proceeding further, it is relevant to note the provisions of section 80P of the Act under which the assessee has claimed the deduction in the present case. As per the provisions of section 80P(1) of the Act, the income referred to in sub-section (2) to section 80P shall be allowed as a deduction to an assessee being a Cooperative Society. Further, section 80P(2)(d) of the Act, reads as under: 80P. 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) ..... (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 cumulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Banks, which are Co-operative Societies and also possesses a licence from RBI to do banking business. The Hon ble Supreme Court further held that the limited object of section 80P(4) is to exclude Co-operative Banks that function at par with other commercial banks i.e. which lend money to members of the public. Therefore, we find no merits in the reasoning adopted by the learned CIT(A) in denying deduction under section 80P(2)(d) of the Act to the assessee. As a result, grounds no. 4 and 5 raised in assessee s appeal are allowed. 7. We also noticed that in a recent decision the Co-ordinate bench in the case of Shivsahyadri Sahakari Patpedhi Maryadit (supra) has held a similar view by following the decision of the Hon'ble Madras High Court in the case of Thorapadi Urban Co-operative Credit Society Vs. ITO (2023) 156 taxmann.com 419 (Madras). The relevant 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in deposits with various Co-operative Banks and has received interest income on the same. The assessee while filing the return of income has claimed such interest as a deduction under section 80P(2)(d). We notice that the lower authorities have denied the benefit of deduction for all the AYs under consideration for the reason that the interest received from Co-operative Bank is not eligible for deduction under section 80P(2)(d). These facts are identical to the facts adjudicated in the above judicial pronouncements. Therefore, respectfully following the above decisions, we hold that the assessee is entitled for deduction under section 80P(2)(d) towards income derived from deposits with Co-operative Bank for AY 2017-18, 2018-19 2020-21. Accordingly, the AO is directed to allow the deduction claimed by the assessee for these AYs. 9. In the case before us, it is evident from the facts that in the F.Y. 2012-13 relevant A.Y. 2013-14, the assessee earned interest income of Rs. 18,12,581/-. Whole of this interest is earned from the savings and fixed deposit maintained with the cooperative bank i.e., The Mumbai District Central Co-operative Bank NKGSB Co-operative Bank. The assessee claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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