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2015 (3) TMI 1249 - ITAT BANGALORERevision u/s 263 - AO had not applied or considered section 80P(2)(d), in accordance with the wordings of the said section - whether the interest on deposits earned by a Co-operative Society, where such deposits were with a Cooperative Bank, are allowable as a deduction under Section 80P(2)(d) of the Act? - Held that:- As in the case of Bagalkot District Central Co-operative Bank (2015 (1) TMI 1005 - ITAT BANGALORE) held that a Cooperative bank which is also a Co-operative Society cannot be excluded from the purview of benefits available to a Cooperative Society , unless the provisions of the Act so stipulate. No doubt in the said decision, the Tribunal was considering the application of Section 194A(3)(v) of the Act, wherein it was mandated that a Cooperative Society was not required to deduct tax at source if the interest credit were paid to any Co-operative Society. It had unequivocally held that the said provision applied to all Cooperative Societies including a Cooperative Society engaged in the business of the bank or in other words, a Co-operative Bank. Therefore, the view taken by the AO that income by way of interest or dividends earned by the assessee society from the Cooperative bank namely Kanara Dist. Central Co-operative bank which was also a Co-operative Society was eligible for deduction cannot be faulted. We cannot say that the order of the AO was erroneous and prejudicial to the interest of the revenue. In this view of the matter, we cancel the impugned order of the learned CIT, and consequently the appeal of the assessee is allowed.
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