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TMI Blog2024 (9) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... society, therefore, the interest income earned by the cooperative society from the cooperative banks qualifies for deduction u/s.80(P)(2)(d). Such interest also qualifies for exemption u/s.80P(2)(a)(i) as held in the case of Nashik Road Nagari Sahkari Patsanstha Limited [ 2021 (12) TMI 1259 - ITAT PUNE ] Therefore, we affirm the impugned order directing the AO to allow the claim of exemption u/s.80P(2)(a)(i)/80P(2)(d) on the interest income earned on investments made out of surplus funds made with Cooperative banks, Cooperative Societies and Nationalised banks. Appeal filed by the Revenue is dismissed. - SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For the Assessee :Dr. Prayag Jha Shri Prateek Jha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P(2)(a)(i)/80P(2)(d) placing reliance on the decisions of various Benches of the Tribunal and CBDT Circular No.18/2015, dt. 02.11.2015. 4. Being aggrieved, the Revenue is in appeal before the Tribunal appeal. 5. We heard the rival submissions and perused the material on record. We find this issue is no more res integra by virtue of catena of decisions passed by the Coordinate Benches of this Tribunal. In the present case, we find that admittedly the interest income was earned from the investments out of surplus funds made with cooperative banks/socieites, the cooperative bank is also a specie of cooperative society, therefore, the interest income earned by the cooperative society from the cooperative banks qualifies for deduction u/s.80(P)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Thrift Credit Society Ltd. Vs. CIT 50 taxmann.com 278, the Hon ble Punjab Haryana High Court in the case of CIT Vs. Punjab State Cooperative Agricultural Development Bank Ltd. 389 ITR 68 and the Hon ble Kolkata High Court in the case of CIT Vs. Southern Eastern Employees Cooperative Credit Society Ltd. 390 ITR 524 took a view that the income arising on the surplus invested in short term deposits and securities cannot be attributed to the activities of the society and, therefore, not eligible for exemption u/s.80P(2)(a)(i) of the Act. However, the Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. Vs. ITO (2015) 230 taxmann 309 (Kar.) and the Hon ble Telangana and Hon ble Andhra Pradesh High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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