TMI Blog2015 (3) TMI 1249X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-operative Society under section 9 of the Co-operative Societies Act, 1912 (Act No.2 of 1912), the averments did not find favour with the CIT. He held the assessments done to be erroneous and prejudicial to the interest of the revenue, on this count. 3. Aggrieved by the order under Section 263 of the Act passed by the CIT, Hubli vide order dt.12.3.2014, the assessee has preferred this appeal raising the following grounds :- 1. On the facts and in the circumstances of the case the ld. CIT, Hubli has erred in considering the assessment order passed by the ld. ITO. Ward-1, Sirsi as erroneous and prejudicial to the interest of revenue. 2. On the facts and in the circumstances of the case the ld. A.O. has erred in law in denying the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT in ITA No.609 610/Bang/2014 dt.6.2.2015. 5. Per contra, learned DR strongly supported the order of the CIT and also submitted that the AO had not applied or considered section 80P(2)(d), in accordance with the wordings of the said section. Hence, according to him there was an error which was prejudicial to the interest of the revenue. 6. We have heard the rival contentions and perused and carefully considered the material on record; including the judicial pronouncements cited (supra). The question for our consideration and adjudication is as to 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. We are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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