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2015 (2) TMI 1094 - AT - Income TaxRevision u/s 263 - assessee had claimed deduction under section 80P(2)(d) on interest received by it on its deposits with Cooperative Banks - CIT held that Section 80P(2)(d) could not be so liberally interpreted so as to construe a Co-operative bank also as a Cooperative Society - Held that:- A reading of the computation part of the assessment, do show that AO had considered the claim of deduction made by the assessee u/s 80P(2)(d) of the Act. Out of the total claim of ₹ 9,77,821/- AO had disallowed ₹ 4,770/- being interest of TDS for the assessment year 2009-10. Therefore, it is not a case where AO failed to apply his mind at all. Now coming to the question as to whether the interest on deposits earned by a Co-operative Society, where such deposits were with a Co-operative Bank, we are of the opinion that restrictive interpretation given by the learned CIT(A) to section 80P(2)(d) was not warranted by it wordings. This Tribunal in the case of Bagalkot District Central Co-operative Bank [2015 (1) TMI 1005 - ITAT BANGALORE ] had held that a Co-operative 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 Co-operative Society 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 - Decided in favour of assessee.
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