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2017 (8) TMI 371 - AT - Income TaxDisallowance of deduction claimed u/s 80P - income of interest from the permanent members - Held that:- The assessee has claimed income of interest from the permanent members and also from the other Cooperative Societies only as deduction u/s 80P of the Act, the case is clearly covered by the above decision in Ranga Reddy Judicial Employees Mutually Aided Co-operative Credit Society Ltd [2015 (5) TMI 751 - ITAT HYDERABAD ] as held Section 80P(2)(d) is applicable to the assessee-society in respect of incomes by way of interest or dividends received by the co-operative society from its investments with any other co-operative society. Therefore, in the case of the assessee-society, sub-section (4) is not applicable and deduction under section 80P(2)(d) is certainly eligible to the assessee. In the assessment of a co-operative bank, the incomes may not be exempt after April 1, 2007 by virtue of sub-section (4), but the assessee is not a co-operative bank. Therefore, the Revenue ground is not only illogical but also not supported by the facts of the case. Moreover as seen, the recommendation made by the Assessing Officer to the learned Commissioner of Income-tax in their internal correspondence is extracted as a ground. This also indicates non-application of mind either by the Assessing Officer or by higher authority like Commissioner of Income-tax. - Decided in favour of assessee.
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