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TMI Blog2024 (10) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... his is an appeal filed by the appellant society directed against the order of Addl/JCIT(A), Surat, dated 25.06.2024 for the assessment year 2017-18. 2. Brief facts of the case are that the appellant is Cooperative Society governed by the provisions of Maharashtra Cooperative Societies Act, 1960. It is engaged in the business of collecting deposits and lending money to its members. The Return of Income for the assessment year 2017-18 was filed on 29.10.2017 disclosing total income at Nil after claiming deduction of Rs. 54,88,523/- u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 ( hereinafter also called the Act ). The case was selected for limited scrutiny under CASS. Statutory notice u/s. 143(2)/142(1) were issued to the appellant calling upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... catena of decisions passed by the Co-ordinate Benches of this Tribunal. 6. On the other hand, ld. Sr. DR placing reliance on the orders of the lower authorities submits that no interference by this Tribunal is called for. 7. I heard the rival submissions and perused the material on record. The solitary issue in the present appeal relates to the eligibility of the assessee for exemption u/s. 80P(2)(a)(i) of the Act in respect of interest income earned from Nationalised Banks. 8. As regards, the issue as to the allowability of exemption under the provisions of section 80P(2)(a)(i) in respect of interest income earned by a cooperative society from the Nationalised banks, there is a cleavage of judicial opinion among several High Courts on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Samity Ltd., 147 taxmann.com 518 (Calcutta) and the Hon ble Madras High Court in the case of Chennai Central Co-operative Bank Ltd. vs. ITO, 148 taxmann.com 17 (Madras). The Coordinate Bench of Pune Benches in the case of M/s. Ratnatray Gramin Bigar Sheti Sah. Pat Sanstha Maryadit Vs. ITO (ITA Nos.559/560/PUN/2018, dated 11.12.2018) taken view in favour of the assessee following the judgment of Hon ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). Following the decision of the Coordinate Bench of the Tribunal, I am of the considered opinion that the interest income earned on Fixed Deposits with Nationalised Banks partakes character of the business income, which is eligible for deduction u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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