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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 ..... fact that in order to claim deduction U/s 80P(2)(d) of the Act the only condition is that assessee should be co-operative society and it has interest income accrued from investment with other co-operative society including co-operative bank which is included in part of the gross total income. 3. Not Considering the various ITAT and court Judgments clearly allowing the deductions claimed under 80P(2)(d) of Income Tax Act 1961 to a Co-operative society. 4. Appellant craves leave or add, alter or delete any grounds either before or in the course of the hearing of the Appeal." 3. Only controversy in this appeal is the disallowance of deduction u/s. 80P(2)(d) of the Act. The assessee is a L and T Group of Companies Employees Co-op Housing Society Limited is a registered society under Maharashtra Co-operative Societies Act, 1960. The assessee has filed the income tax return for A.Y. 2013-14 u/s. 139(1) of the Act on 03.12.2018 declaring gross total income of Rs. 18,64,642/-. The assessee during the relevant year under consideration has claimed deduction of Rs. 18,12,581/- u/s. 80P(2)(d) of the Act under chapter VI A as under: Particulars Interest from Mumbai District Central Co- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Tribunal has allowed the claim u/s. 80P(2)(d) of the Act. It is therefore vehemently argued that the case of the assessee is same and similar and therefore the assessee should be allowed to claim deduction of interest amount u/s. 80P(2)(d) of the Act. 7. The Ld. DR on the other hand submitted that the Hon'ble Gujarat High Court in the case of Katlary Kariyana Merchant Sahkari Vs. (ACIT 327 CTR 138) has held that the assessee is not entitled for deduction under section 80P(2)(d) towards the interest income received from deposit with Co-operative Bank. The Ld. DR therefore, submitted that the lower authorities have correctly denied the benefit of deduction to the assessee. 8. We have considered the submissions made by the parties and perused the material on record. The same issue has been decided recently by the Ld. Coordinate Bench in ITA No. 542/Mum/2024, Shah and Nahar Industrial Premises A2 Co-op. Soc. Ltd. Vs. National e-Assessment Centre, New Delhi/Asst. CIT, Circle-22(3), dated 21.06.2024 and one of us was member of the Coordinate Bench. Para 6 to 8 are relevant of this order and reproduced as under: "6. We have heard the parties and perused the material available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-operative Societies Act, 1960, it is required to invest or deposit its funds in one of the modes provided in section 70 of the aforesaid Act, which includes investment or deposit of funds in the District Central Co-operative Bank or the State Cooperative Bank. Accordingly, the assessee kept the deposits in Saraswat Cooperative Bank Ltd and Maharashtra State Co-operative Bank Ltd and earned interest, which was claimed as a deduction under section 80P(2)(d) of the Act. The deduction under section 80P(2)(d) of the Act was denied on the basis that the Saraswat Co-operative Bank Ltd and Maharashtra State Co-operative Bank Ltd are multi-state scheduled banks and therefore interest derived will not qualify for deduction under section 80P(2)(d) of the Act. However, from the perusal of section 80P(2)(d) of the Act, it is sufficiently evident that there is no restriction on claiming deduction under the said section in respect of interest income earned from the Cooper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 is eligible for deduction. Now the issue is as to whether the Co- operative Bank would fall within the purview of the term 'Co-operative Society'. In the present case, the petitioner produced a document to show that the Cooperative Bank, where they have made investments was registered under the Tamil Nadu Co-operative Societies Act, 1983 on 20.5.2003. In this regard, he also produced a copy of the Certificate of Incorporation of the said Co-operative Bank. Therefore, it is clear that the investment made by the petitioner is a Co- operative Bank registered under the Co-operative Societies Act. The Income Tax Act, 1961 has also defined 'Co-operative Society' under Section 2(19) as follows: "2(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 registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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