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2020 (3) TMI 402 - CALCUTTA HIGH COURTDeduction u/s 80P(2)(a)(i) - income by way of interest or dividends derived by the co-operative society from its investments with any other co-operative society - HELD THAT:- We find that revenue’s case is covered by South Eastern Railways Employees Co-operative Credit Society Limited [2016 (9) TMI 814 - CALCUTTA HIGH COURT] The Act of 2006 and Rules thereunder mandate 10% of net profit in every cooperative year to be transferred to a reserve fund. Interest income on rest of the net profit of respondent appears to be similar income or to be similarly treated as interest income on investment of sale of agricultural produce of the assessee in Totgar’s [2010 (2) TMI 3 - SUPREME COURT] that assessee being one coming within sub-clause (a)(iv) under sub-section (2) in section 80P. Assessee being a credit society similar to assessee South Eastern Railways Employees Co-operative Credit Society Limited, Totgar’s (supra) would apply to its such income. It follows that the question in this appeal is to be answered in the affirmative, in favour of revenue and we so answer it. Having answered the question as we have, we direct the matter be remanded to the Assessing Officer, to work out interest earned on the reserve fund, if invested and allow deduction therefore in addition to the deduction already allowed in applying section 80P(2)(d), as in the assessment order. Said deduction was correctly allowed and allowing of only it cannot be taken to imply, reason to have disallowed the other income was by going on manner of such investments.
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