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2017 (3) TMI 1728 - AT - Income TaxEligibility of deduction u/s 80P - claim denied on interest earned on deposits with a Co-operative bank - claim denied primarily on account of the fact that section 80P(2)(d) of the Act relates to the income earned from a Co-operative society - Held that:- The reliance placed by the CIT(A) on the judgment of STATE BANK OF INDIA EMPLOYEES CO-OP. CREDIT & SUPPLY SOCIETY LTD VERSUS THE CIT [2015 (4) TMI 94 - ITAT AHMEDABAD] is quite untenable, inasmuch as, in the said case the interest income in question was earned from deposits kept with State Bank of India. Obviously, State Bank of India is not a Co-operative society so as to justify the claim that such interest earnings fall within the scope of section 80P(2)(d) of the Act. Further, the reliance placed by the CIT(A) on the decision of the SMC Bench of Mumbai Tribunal in the case of Shri Saidatta Cooperative Credit Society Ltd. [2016 (1) TMI 1262 - ITAT MUMBAI] is also of no avail, inasmuch as, the Bench merely set-aside the matter to the file of the Assessing Officer for examination afresh, whereas in the case of Lands End Co-operative Housing Society Ltd(supra), the claim of exemption under section 80P(2)(d) of the Act with respect to the interest earned from a Co-operative bank has been upheld. Therefore, in view of the said precedent, the claim of the assessee deserves to be allowed. Cae of LANDS END CO-OPERATIVE HOUSING SOCIETY LTD VERSUS I.T.O. WARD-16 (1) (3) , MUMBAI [2016 (2) TMI 620 - ITAT MUMBAI] to be followed. Order of the CIT(A) is set-aside and the Assessing Officer is directed to allow deduction under section 80P(2)(d) of the Act with respect to the interest income earned from a Co-operative bank. - Decided in favour of assessee.
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