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2021 (3) TMI 1425 - AT - Income TaxDeduction u/s.80P(2)(d) - assessee received interest income being interest on savings account, term deposits and fixed deposits with Co-operative banks, sale of scrap, miscellaneous income, dividend and interest free tax free bonds - AO held that interest income received by the assessee from Co-operative bank does not fall in the exempt category as provided u/s.80P(2)(d) of the Act along with other income - HELD THAT:- As already stated that this issue is already decided in favour of the assessee by this Tribunal in assessee’s own case for A.Y.2015-16 as decided in the case of PCIT vs. Totagars Co-operative Sale Society [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] has held that for the purpose of section 80P(2)(d) of the Act a cooperative bank should be considered as cooperative society. Similar view has been taken by the Hon'ble Gujarat High court in the case of Surat Vankar Sahakari Sangh Ltd. [2016 (7) TMI 1217 - GUJARAT HIGH COURT] On the same issue in the case of PCIT vs. Totagars Co-operative Sale Society [2017 (7) TMI 1049 - KARNATAKA HIGH COURT] has taken a contrary view holding that interest income earned from deposit with the cooperative bank does not qualify for deduction under section 80P(2)(d). It would be relevant to mention here that the Hon'ble High Court while rendering later judgement has not considered the earlier decision rendered in the case of Totagars Co-operative Sale Society reported [2017 (1) TMI 1100 - KARNATAKA HIGH COURT] No judgement from Hon'ble Jurisdictional High court on the issue of eligibility of deduction u/s 80P(2)(d) of the Act on interest income from cooperative bank has been brought to our notice. The Hon'ble Bombay High Court in the case of K. Subramanian Vs. Siemens India Ltd. [1983 (4) TMI 3 - BOMBAY HIGH COURT] has held that when two conflicting decisions of non-jurisdictional High courts are available, the view which is in favour of the assessee, is to be preferred. Decided in favour of assessee.
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