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TMI Blog2023 (1) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Co-operative Bank. is allowable deduction u/s 80P(2)(d) - Assessee appeal allowed. - SHRI ABY T. VARKEY, JM AND SHRI M. BALAGANESH, AM For the Assessee : Shri Bhupendra Shah For the Revenue : Shri Vaibhav Jain ORDER PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Co-operative Housing Society Ltd. against the order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 26.08.2022 for assessment Year 2020-21 wherein the assessee has challenged the action of the Ld. CIT(A) confirming the AO s decision in not granting deduction u/s 80P(2)(d) of the Income Tax Act, 1961 (hereinafter the Act ) of an amount of Rs. 3,34,570/- which the assessee has earned as interest on fixed deposit in a Co-operative Bank. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 17,58,119/-. 2. Brief facts are that the assessee UTI Employees Sai Samrudhi Co-op Housing Society Ltd. is a Cooperative Housing Society, Registered under the Maharashtra Co-op Society Act. The society was formed by Employees and nominees of Unit Trust of India (Government Entity). The society being a housing society consists of members who are shareholders to whom flats which were allotted by the Society. The assessee had invested its Surplus fund with Co-operative Banks as per the directions of the Maharashtra State Co-operative Act. The assessee s claim of deduction of interest income from Mumbai District Central Co-operative Bank to the tune of Rs. 17,58,119.00/- u/s 80P(2)(d) of the Act was rejected by CPC u/s 143(1) of the Act. Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section, the sums specified in sub-section (2), in computing the total income of the assessee. (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; 5. From a bare reading of Sec. 80P(2)(d), it can be discerned that interest income derived by an assessee c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As far as the reliance placed made by the Ld. AR in support of the claim of deduction u/s 80P(2)(d) of the Act as well as the reliance placed by the Ld. DR for supporting the order of the Ld. CIT(A), it is noted that the case laws cited by both the parties have been taken note by this Tribunal in the case of M/s. Rema Sahakari Karkhana Ltd. Pune Bench (ITA. No. 1249/Pun/2018 dated 07.01.2022) wherein the Tribunal has held as under: - 9. In so far the judicial pronouncements that have been relied upon by the ld. A.R are concerned; we find that the issue that a co-operative society would be entitled for claim of deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a co-operative bank is covered in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rative society would not be entitled to claim deduction under Sec. 80P(2)(d); but then, the Hon'ble High Court in the case of Pr. Commissioner of Income Tax and Anr. Vs. Totagars Cooperative Sale Society (2017) 392 ITR 74 (Karn) and Hon ble High Court of Gujarat in the case of State Bank of India Vs. CIT (2016) 389 ITR 578 (Guj), had observed, that the interest income earned by a co-operative society on its investments held with a co-operative bank would be eligible for claim of deduction under Sec.80P(2)(d) of the Act. Backed by the aforesaid conflicting judicial pronouncements, we may herein observe, that as held by the Hon'ble High Court of Bombay in the case of K. Subramanian and Anr. Vs. Siemens India Ltd. and Anr (1985) 156 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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