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TMI Blog2025 (1) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in co-operative bank claimed as allowable u/s.80P(2) because co-operative banks are also registered under co-operative society. Accordingly, respectfully following the earlier year precedents for A.Y.2017-18 [ 2024 (4) TMI 1169 - ITAT MUMBAI] the grounds raised by the Revenue in both the appeals are dismissed. - Shri Amit Shukla, Judicial Member And Shri, Girish Agrawal, Accountant Member For the Assessee : Shri Dinesh Ahir For the Revenue : Shri Pravin Salunkhe (Sr. DR) ORDER PER BENCH: The aforesaid appeals have been filed by the Revenue against order dated 13/11/2024 passed by NFAC, Delhi, Mumbai for the quantum of assessment passed u/s.143(3) for the A.Y.2020-21 and for A.Y.2018-19. 2. In both the years the grounds raised by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in law, the Ld. CIT(A) is erred in deleting the addition made of Rs. 4,34,49,404/- by the AO without considering the decision of the Hon'ble Supreme Court in the case of Citizen Co-operative Society Ltd. Vs. ACIT vide its order dated 08/08/2017 [[2017] 84 taxmann.com 114 (SC)], which was further affirmed in its order dated 21/11/2017 in response to a review petition [2017] 88 taxmann.com 279 (SC)], wherein the Hon'ble Apex Court has held that the co-operative bank cannot be treated as co-operative society and cannot take benefit of deduction u/s 80P of the Act and accordingly, as per the Act the deduction u/s 80P(2)(d) of the Income-Tax Act, is allowable only with the deposit made with co-operative society not with co-operative ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ready reference the relevant finding reads as under:- 2. The assessee, which is a credit co-operative society registered under the Maharashtra Co-operative Societies Act, had filed its Return of Income (RoI) on 30.10.2017 declaring NIL income after claiming a deduction of Rs. 5,01,16,340/- under Section 80P(2)(d) of the said Act. The return was initially processed under Section 143(1) of the Act. The case was selected for scrutiny under CASS. Notice under Section 142(1) of the Act was issued to the assessee. Eventually the AO by order dated 27.12.2019 disallowed the deduction as claimed. 3. Feeling aggrieved, the appellant challenged the same before the CIT(A). The First Appellate Authority passed the impugned order confirming the disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Thorapadi Urban Co-op. Credit Society Ltd. (supra) has held thus in paras 8 to 10 of its order :- 8. The main issue is to decide in the present case is as to whether the petitioner Co-operative Society is entitled for a deduction for the interest income received from the Co-operative Bank? 9. It would be appropriate to extract hereunder the relevant portion of section 80P(2)(d). 80 P. Deduction in respect of income of co-operative societies: (1) (2) The sums referred to in sub-section (1) shall be the following, namely:- (a) to (c) (d) in respect of any income by way of interest or dividends derived by the co-operative society from its investment with any other co- operative society, the whole of such income 9.1. A read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Society carrying on the other businesses or a Co-operative bank. 9. In that view of the matter, we find that the appeal has to succeed. 4. Further, the Hon ble Supreme Court in the case of PCIT vs. Annasaheb Patil reported in 454 ITR 117, the Hon ble Court held that assessee being a credit society are entitled for exemption u/s. 80P(2) and they cannot be termed as public co-operative banks and therefore, Section 80P(4) shall not be applicable. Admittedly, here in this case the interest had been received from co-operative banks and law is well settled that credit co-operative society investments in co-operative bank claimed as allowable u/s.80P(2) because co-operative banks are also registered under co-operative society. Accordingly, r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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