9911796707
TMI Blog2025 (1) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) has erred in confirming with the Ld. AO and considering the interest earned by the society from other co-operative societies/banks in due course of business as income from other sources and denying deduction u/s 80P(2)(a)(i) against the same. 2. Alternatively, the interest income earned from other co-operative societies/banks is eligible for deduction u/s 80P(2)(d), the Ld. AO had erred in not allowing the same to the society. The Ld. CIT(Appeals) has erred in confirming with the Assessing officer in not considering the society eligible for deduction u/s 80P(2)(d). 3. The appellant further reserves the right to add, amend or alter the aforesaid grounds of appeal as they may think fit by themselves or by their representatives." 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of PCIT vs. Totgars Co-operative Sale Society in ITA No.100066 of 2016 dated 16/06/2017 and accordingly, he disallowed the entire claim of deduction. The ld. CIT(A) too has confirmed the said claim of deduction. 4. We find that this issue stands covered by various decisions of this Tribunal. For the sake of ready reference, the decision of ITAT in the case of Nava Sandesh Sahakari Patsastha Maryadit vs. ITO, wherein the Tribunal held as under:- "4. Brief facts of the case shows that the assessee is a cooperative credit society accepting deposits and lending money to the members of the society. It is considered as a resource society. It does not hold any license from the reserve bank of India for carrying on the banking business. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly appeal of the assessee was partly allowed. 6. The assessee is aggrieved with that order and is in appeal before us. 7. We have heard the rival contentions and perused the orders of the learned lower authorities. Undisputedly the fact shows that assessee is a cooperative credit society wherein it is eligible for deduction under section 80P(2)(a)(i) of its income arising from the business of providing credit facilities to its member, then whole of the amount of the profits and gains of such business are deductible under section 80P(2)(a)(i) of the act. Further under section 80P(2)(d) any income earned by a cooperative society by way of interest or dividend by the cooperative society from its investment with any other cooperat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, is eligible for deduction under section 80P(2)(a)(i) or (d) of the act. 12. Accordingly, both the grounds of appeal raised by the assessee are allowed." 5. Apart from that law is now well settled that any co-operative credit society is not holding banking license is eligible for deduction u/s. 80P(2)(d) in view of the Hon'ble Supreme Court Judgment in the case of Citizen Co-operative Society Ltd. vs ACIT in Appeal No.10245 of 2017 dated 08/08/2017; and The Mavilayi Service Cooperative vs. Commissioner of Income Tax in Civil Appeal No.8315 of 2019 dated 12/01/2021. Thus, we hold that assessee is eligible for claim 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
