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TMI Blog2024 (9) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... t is disclosed by the assessee is interest income in profit and loss account and part of the income shown by the assessee under the head income from other sources does not change the character of the income and consequent deduction of such income, if available. Therefore, the claim of the assessee in the return of income is also not an incorrect claim. Thus, the adjustment of disallowance of deduction under that section is not permissible adjustment provided under section 143(1) of the act. Therefore the intimation passed under section 143(1) is not sustainable. Cooperative banks are also a co-operative society. Only difference is that those cooperative societies are doing the business of banking as per the banking companies act 1949. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessment year where the due date was 31/12/2021 declaring total income of ₹ 43,160/ . The assessee has earned interest from various cooperative banks on fixed deposit and interest of ₹ 4,016,247/ and ₹ 6670/ totaling to ₹ 422,917/ . Assessee claimed deduction under section 80P(2)(d) of ₹ 417,010/ in respect of interest received from cooperative bank. This return of income was processed under section 143 (1) of 19/10/2022 denying deduction under that section and assessing the income of the assessee at ₹ 4,53,500/ . The reason for such adjustment is that assessee has shown the interest income of ₹ 6670/ under the head of interest income in profit and loss account which has been allowed as a deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under sub-section (1) of section 139; (iv) disallowance of expenditure 70 [or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under 71 [section 10AA or under any of the provisions of Chapter VI-A under the heading C. Deductions in respect of certain incomes , if] the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: 6. The disallowance of deduction under chapter VI A can only be made under section 143(1)(a)(v) of the act only on account of non-furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 143(1) of the act. Therefore the intimation passed under section 143(1) is not sustainable. 10. On the merits of the case, provisions of section 2(19) define a co-operative society as under:- 19) co-operative society 97 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 ; 11. Thus, for the definition of the cooperative society whether covers the cooperative banks are not one has to look at the respective cooperative societies act is applicable. 12. THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960, Defines cooperative banks as per section 2(10) of that Act as under : - Co-operative ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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