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TMI Blog2025 (1) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction u/s.80P(2)(a)(i) that all its income is from members and the reason given by the ld. AO that income / interest has been earned from deposits made in the co-operative banks, therefore, same is not eligible for deduction u/s.80P. The same is also covered by the decision of ITAT Mumbai Bench in the case of Bharat Sanchar Nigam Employees Co-operative Credit Society Ltd[ 2024 (11) TMI 423 - ITAT MUMBAI] Accordingly, the grounds raised by the assessee are allowed for both the years. - Shri Amit Shukla, Judicial Member And Shri Girish Agrawal, Accountant Member For the Assessee : None For the Revenue : Shri Mahesh Pamnani (SR DR) ORDER PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the assessee against order dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire income was claimed as deduction u/s.80P(2)(a)(i). Assessee has also claimed deduction u/s. 80P(2)(d) of Rs. 50,000/- from the interest received from co-operative banks. The ld. AO has disallowed the claim of deduction holding that assessee has claimed deduction against interest income from co-operative banks and after invoking provision of Section 80P(4), he held that Income Tax Act distinguishes the co-operative banks from co-operative society which says that no deduction is to be allowed to co-operative banks u/s.80P. He further held that the interest income from co-operative bank is not business income and therefore, he is required to be taxed under the head income from other sources ; and as per the provision of Section 80P(2)(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for deduction. Accordingly, the total deduction claimed by the assessee under section 80P was denied and assessment order was passed on 14/12/2019 under section 143(3) of the act determining total income of the assessee at 6,227,736/-. 5. Assessee preferred an appeal before the learned CITA wherein it was held that assessee is not a cooperative bank and therefore eligible to claim deduction under section 80P(2)(a)(i) of the act. However the learned CIT - A directed the learned assessing officer that if there is any income which is different than the business income of the assessee, same shall be chargeable to tax under the head income from other sources. With respect to the deduction under section 80P(2)(d) of the act the AO was di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee on its deposits with other cooperative banks, the assessee is eligible for deduction under section 80P(2)(d) of the Act. 10. Assessee is also eligible for deduction to the extent of 50,000 in terms of provisions of section 80P(2)(C)(ii) of the act. 11. On reading the order of the learned CIT(A) it is apparent that so far as the income from profits and gains from the specified activity, deduction is granted under section 80P(2)(a)(i) of the act. With respect to the deduction under section 80P(2)(d) only the deduction with respect to the interest received by the assessee from another cooperative bank which are cooperative society are granted. The learned CIT A has directed the learned assessing officer to examine the above fact and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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