9911796707
TMI Blog2025 (1) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate deductions u/s 57 of the Act in the light of the decision of Mantola Cooperative Thrift & Credit Society Ltd. [2014 (9) TMI 833 - DELHI HIGH COURT]. Interest earned by the assessee from cooperative banks - We observe that recently in the case of PCIT Vs. Ashwin Kumar Urban Cooperative Society Ltd. [2024 (11) TMI 971 - GUJARAT HIGH COURT] held that deduction u/s 80P(2)(d) is allowable to cooperative societies on income earned on investments made with cooperative banks. Delhi Bench of the Tribunal is consistently took the same view in the cases of Mantola Cooperative Thrift & Credit Society Ltd.[2016 (6) TMI 1499 - ITAT DELHI], Janta Adarsh Cooperative Thrift & Credit Society Ltd. [2024 (8) TMI 275 - ITAT DELHI] We also find that in the case of M/s Veer Cooperative Group Housing Society [2018 (9) TMI 287 - ITAT DELHI] the cooperative bench of the Delhi Tribunal held that the interest earned by the assessee a cooperative society from its investment with other cooperative societies would be entitled for deduction u/s 80P(2)(d). Thus, assessee is entitled for deduction u/s 80P(2)(d) in respect of interest income earned by the assessee from cooperative bank/societies other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention of the Assessee is that interest received from cooperative banks is eligible for deduction u/s 80P(2)(d) and reliance was placed on the decision of the Hon'ble Gujarat High Court in the case of PCIT Vs. Ashwin Kumar Urban Cooperative Society Ltd. (168 taxmann.com 314). Referring to the said decision Ld. Counsel submits that the Hon'ble Gujarat High Court held that deduction u/s 80P(2)(d) is allowable to cooperative societies on income earned as interest on investments made with cooperative bank which in turn is a cooperative society itself. The Ld. Counsel submits that the Hon'ble Gujarat High Court while holding so also considered the decision of the Hon'ble Supreme Court in the case of Totagars Cooperative Sale Society Vs. ITO (322 ITR 283). Ld. Counsel also placed reliance on the decision of the Karnataka High Court in the case of PCIT Vs. Totagars Cooperative Sale Society (392 ITR 74), wherein the Hon'ble Karnataka High Court has held that for the purpose of section 80P(2)(d) a cooperative bank should be considered as a cooperative society and the deduction is allowable u/s 80P(2)(d). 4. The Ld. Counsel further referring to the said decision submits that the Hon'ble K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xed deposits with scheduled banks is concerned the issue came up for adjudication before the Tribunal in assessee's own case in ITA No.3034/Del/2019 for the AY 2013-14 and the Tribunal by order dated 11.09.2023 following the decision of the jurisdictional High Court in the case of Mantola Cooperative Thrift & Credit Society Ltd. Vs. CIT (2014) (90 CCH 0075) held that the deduction u/s 80P on interest income earned from deposits placed with scheduled banks other than the banks in the nature of cooperative societies is not allowable. However, following the very same judgment of Delhi High Court the Tribunal restored the contention of the assessee that if the interest income from banks is not allowable as deduction u/s 80P and is assessed u/s 56 under the head "income from other sources" in that situation proportionate allowance of expenditure should be considered u/s 57 of the Act and this aspect of the matter has been restored to the file of the Assessing Officer for giving appropriate allowances towards expenditure. While holding so the Tribunal observed as under: - "7. We have heard the rival submissions on the issue. The deduction u/s 80P of the Act on interest income earned fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so far as interest earned by the assessee from cooperative banks is concerned, we observe that recently the Hon'ble Gujarat High Court in the case of PCIT Vs. Ashwin Kumar Urban Cooperative Society Ltd. (2024) (168 taxmann.com 314) held that deduction u/s 80P(2)(d) is allowable to cooperative societies on income earned on investments made with cooperative banks. Delhi Bench of the Tribunal is consistently took the same view in the cases of Mantola Cooperative Thrift & Credit Society Ltd. Vs. ITO (ITA Nos. 483 to 487 of 2013 dated 30.06.2016, ITA No. 4078 of 2019 dated 27.7.2020), the Janta Adarsh Cooperative Thrift & Credit Society Ltd. Vs. ITO (ITA Nos. 3612 & 3613/Del/2023 dated 28.6.2024). We also find that in the case of M/s Veer Cooperative Group Housing Society vs. ITO in ITA No.2787 & 2788/Del/2018 dated 4.9.2018 the cooperative bench of the Delhi Tribunal held that the interest earned by the assessee a cooperative society from its investment with other cooperative societies would be entitled for deduction u/s 80P(2)(d) of the Act. Thus, respectfully following the above said decisions, we hold that the assessee is entitled for deduction u/s 80P(2)(d) in respect of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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