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TMI Blog2025 (2) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has been brought to our notice - As decided in Yashwant Nagari Sahakari Patsanstha Maryadit [2024 (6) TMI 1387 - ITAT PUNE] held that the assessee was eligible for deduction u/sec.80P(2)(a) of the Act on the Interest earned by assessee. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 80P(2)(a)(i) of Rs. 36,08,160/-. The Assessee's case was selected for scrutiny. The Assessing Officer(AO) passed assessment order after considering Assessee's submission. 4.1 The relevant paragraph of the assessment order is reproduced here as under : "The assessee is a primary agricultural co-operative credit society registered under section 10 of Bombay Act VII of 1925. The main object/business of the society is providing credit facilities to its members. The society obtains loans from Sangli District Central Cooperative Bank and gives loans to its regular members. The assessee furnished the details/documents vide its reply dated 01.11.2022 and 29.11.2022. The assessee has furnished registration certificate, bye laws, copy of balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not eligible for deduction u/s 80P(2)(a)(i))." 4.2 The Assessing Officer disallowed Assessee's claim for deduction 80P(2)(a)(i) of the Act, for interest earned from Sangli District Central Co-operative Bank, relying on Hon'ble Karnataka High Court's decision in Pr.CIT Vs. Totagars Co-operative Sale Society. Aggrieved by the assessment order, assessee filed appeal before the ld.CIT(A). The ld.CIT(A) confirmed the addition. 4.3 Aggrieved by the order of the ld.CIT(A), the assessee has filed appeal before this Tribunal. It is an admitted fact that Assessee is a Primary Agricultural Co-operative Credit Society. Assessee had claimed deduction under section 80P of Rs. 36,08,160/- for the year under consideration, out of that Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strong reliance upon a decision of the Division Bench of this court in CIT v. Andhra Pradesh State Cooperative Bank Ltd. [2011] 12 taxmann.com 66/200 Taxman 200/336 ITR 516, the Revenue places strong reliance upon the decision of the Supreme Court in Totgar's Co-operative Sale Society Ltd. v. ITO [2010] 188 Taxman 282/322 ITR 283. …………………… 34. The case before the Supreme Court in Totgar's Co-operative Sale Society Ltd.'s case (supra) was in respect of a co-operative credit society, which was also marketing the agricultural produce of its members. As seen from the facts disclosed in the decision of the Karnataka High Court in Totgars, from out of which the decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioners in nationalised banks is admittedly the income that the petitioners derived from the activities listed in sub-clauses (i) to (vii) of clause (a). The character of such income may not be lost, especially when the statute uses the expression "attributable to" and not any one of the two expressions, namely, "derived from" or "directly attributable to". 37. Therefore, we are of the considered view that the petitioners are entitled to succeed. Hence, the writ petitions are allowed, and the order of the Assessing Officer, in so far as it relates to treating the interest income as something not allowable as a deduction under section 80P(2)(a), is set aside." Unquote. 5.1 Thus, the Hon'ble High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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