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2024 (5) TMI 516 - ITAT VISAKHAPATNAMDisallowance of deduction claimed u/s 80P - interest and dividends received from investments made with DCCB - whether the assessee is eligible for deduction u/s 80P with respect to the interest income earned on deposits parked with District Cooperative Central Bank, or not? - HELD THAT:- It is an admitted fact that the assessee has claimed deduction u/s 80P of the Act. The contention of the AO and the DR is that any income by way of interest or dividends derived the Co-operative Society from its investments with any other cooperative society is eligible for deduction. Revenue Authorities have also placed relied on the decision of Hon’ble Supreme Court of India in the case of M/s Totgars Cooperative Sale Society Ltd [2010 (2) TMI 3 - SUPREME COURT] wherein it was held that “investment of surplus on hand not immediately required in Short Term deposits and securities by a co-operative society providing credit facilities to members or marketing agriculture produce to member”. However, in the instant case, the facts are distinguishable and hence, in my view, the ratio laid down in the case of M/s Totgars Cooperative Sale Society Ltd.(supra) shall not be applied to the instant case. On similar set of facts, in the case of Kakateeya Mutually Aided Thrift and Credit Co-op Society [2023 (9) TMI 211 - ITAT VISAKHAPATNAM] held in favour of the assessee the assessee has invested surplus funds out of the activities carried out as per the provisions of section 80P(2)(a) of the Act. We therefore by respectfully following the jurisdictional High Court are of the view that interest income should be allowed as deduction U/s. 80P(2)(a)(i) of the Act and thereby the Ld. CIT(A)-NFAC has rightly held by deleting the addition made by the Ld. AO and hence we find no infirmity in the order of the Ld. CIT(A)-NFAC. - Decided in favour of assessee.
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