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2014 (4) TMI 1237 - ITAT PUNEDenial of exemption u/s 80P(2)(a)(i) on interest income earned on investments made with the banks - HELD THAT:- In the instant case there is no dispute to the fact that the society is a credit cooperative society authorised by the registrar of cooperative societies for accepting deposits and lending money to its members as per license granted by the registrar of cooperative societies and the main object of the society is to provide credit facility to members who can be any person of the society. We find the Pune Bench of the Tribunal in the case of Mahavir Nagari Sahakari Pat Sanstha Ltd. [2000 (2) TMI 234 - ITAT PUNE] has held that the credit society which is carrying on the business of banking activity and providing credit facility to its members is eligible for deduction u/s.80P(2)(a)(i). Case followed M/S. THE TOTGARS´ COOPERATIVE SALE SOCIETY LIMITED VERSUS INCOME TAX OFFICER. KARNATAKA [2010 (2) TMI 3 - SUPREME COURT] - Decided in favour of assessee. Cross-appeal of revenue relates to the decision of the CIT(A) in holding that the interest income earned from the investments made with other co-operative banks is eligible for the exemption u/s 80P(2)(d) - HELD THAT:- Provisions of section 80P(2)(d) of the Act which reads as follows :- “(d) in respect of any income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society, the whole of such income;” - Thus Decision of the CIT(A) to allow exemption u/s 80P(2)(d) of the Act is expressly in accordance with the provisions of clause (d) of subsection (2) of section 80P of the Act and no infirmity on the same has been pointed out by the learned Departmental Representative before us. Accordingly, we hereby affirm the order of the CIT(A) and the Revenue fails in its cross-appeal.
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