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TMI Blog2024 (11) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... re basically Cooperative Societies except that they get license for doing the banking business. Tribunal in case of Kolhapur District Central Co-op. Bank Kanista Sevakanchi Sahakar Pat Sanstha Ltd. [ 2024 (6) TMI 791 - ITAT PUNE] held that the interest earned from deposits with Cooperative Banks are also eligible for deduction u/s. 80P(2)(d) of the Act. Thus, where the assessee made investment with the Cooperative Banks in regard to the funds which it was required to maintain as per the guidelines provided in the Societies Act applicable to the assessee society and hold that the assessee is eligible for deduction u/s. 80P(2)(d) of the Act for the interest income earned from Cooperative Bank - Decided in favour of assessee. - Shri Manish B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society to file the appeal within the due time. I, in the larger interest of justice, and on considering that the assessee society would not have gained anything from delaying in filing the appeal before this Tribunal, condone the delay and admit the appeal for adjudication on merits. 5. Grounds of appeal raised by the assessee read as under : 1. The Assessee Society requests to condone the delay in filing the appeal as per facts undertaken in the Affidavit enclosed. 2. The Learned CIT(A) NFAC erred in confirming the disallowance of deduction Rs. 8,64,028/- u/s. 80P of the Income Tax Act, 1961, made by the Learned AO. 3. The Learned CIT(A) NFAC erred in not allowing deduction of Rs. 8,64,028/- u/s. 80P(2)(a)(i) or 80P(2)(d), against the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orting the order of the lower authorities but failed to controvert this contention that this issue raised in this appeal has been decided by this Tribunal in other cases holding that interest earned on deposits made with Cooperative Banks is eligible for deduction u/s. 80P of the Act. 12. I have heard the rival contentions, perused the record placed before me and carefully gone through the decisions referred and relied on by both sides. The assessee has earned interest of Rs. 8,64,028/- from Fixed deposits/Investments made with Cooperative Banks. From the perusal of Audited Balance sheet, I notice that under the head Investment , deposits have been made on account of Reserve Fund, RDCC RF Short Term FDR, Development Fund, Dividend Equalisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore respectfully following the above referred decisions and taking consistent view along with considering the facts of the case, where the assessee made investment with the Cooperative Banks in regard to the funds which it was required to maintain as per the guidelines provided in the Societies Act applicable to the assessee society and hold that the assessee is eligible for deduction u/s. 80P(2)(d) of the Act for the interest income earned from Cooperative Bank at Rs. 8,64,028/-. Findings of the ld. CIT(A) is set-aside and the alleged disallowance is deleted. Effective grounds of appeal raised by the assessee are allowed. 14. In the result, appeal of the assessee is allowed. Order pronounced on this 24th day of October, 2024. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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