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TMI Blog2024 (6) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 80P(2)(a)(i) and section 80P(2)(d) therefore, the reasoning given by the lower authorities on this issue cannot be accepted. Thus, we direct the AO to allow deduction u/s 80P(2)(a)(i) and 80P(2)(d) in respect of interest income earned from other cooperative banks. The grounds of appeal filed by the assessee stands allowed. - SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER For the Assessee : Shri Rohit Kasat For the Revenue : Shri Sourabh Nayak ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre (NFAC), Delhi dt. 16.10.2023 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Sale Society Ltd. 395 ITR 611 (Kar HC) etc. confirmed the action of the AO 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. The ld. AR submits that the case of the assessee is covered by virtue of decisions passed by the Pune Benches of the Tribunal allowing the deduction u/s. 80P(2)(a)(i)/80P(2)(d), therefore, prayed for reversing the order of the authorities below. 6. On the other hand, ld. Sr. DR placing reliance on the orders of the lower authorities submits that no interference is called for. 7. We heard both the sides perused the material on record. The only issue in the present appeal relates to the eligibility of the assessee for exemption u/s. 80P(2)(a)(i) or u/s 80P(2)(d) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered by the Hon ble Karnataka High Court in the case of CIT vs. Totagars Cooperative Sale Society, 392 ITR 74 (Karn) wherein the Hon ble High Court referring to the Hon ble Supreme Court in the case of Totgars Co-operative Sales Society Ltd. (supra) held that the ratio of decision of the Hon ble Supreme Court in the aforesaid case (supra) not to be applicable in respect of interest income on investment as same falls under the provisions of section 80P(2)(d) and not u/s 80P(2)(a)(i) of the Act. 9. Even the decision of Pune Bench of the Tribunal in the case of Sant Motiram Maharaj Sahakari Pat Sanstha Ltd. vs. ITO, 120 taxmann.com 10 wherein the Tribunal after making reference to the decisions of the Hon ble Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest income earned from banks. Both the Hon'ble High Courts took into consideration the ratio laid down in the case of Totgar's Cooperative Sale Society Ltd. (2010) 322 ITR 283 (SC). There being no direct judgment from the Hon'ble jurisdictional High Court on the point, the Tribunal in Shri Laxmi Narayan Nagari Sahakari Pat Sanstha Maryadit (supra) preferred to go with the view in favour of the assessee by the Hon'ble Karnataka High Court in the case of Tumkur Merchants Souharda Credit Cooperative Ltd. (supra). 10. Insofar as the reliance of the ld. DR on the case of Pr. CIT and Another Vs. Totagars Cooperative Sales Society (2017) 395 ITR 611 (Kar.) is concerned, we find that the issue in that case was the eligibility of de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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