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2019 (8) TMI 1193 - AT - Income TaxDeduction u/s.80P(2)(a)(i) - assessees are Co-operative Society registered under Karnataka State Co-operative Societies Act - HELD THAT:- Identical issue was considered by a co-ordinate Bench of ITAT Bangalore in the case of M/S.Hemmadi Fishermen’s Primary Co-operative Society Ltd. Vs. The ITO, Ward-2, Udupi [2019 (8) TMI 1086 - ITAT BANGALORE] and it was held therein that the decision of the Hon’ble Supreme Court in the case of Citizen’s Co-operative Society Ltd. [2018 (1) TMI 290 - SC ORDER] was rendered in the context of Co-operative Societies Act as prevalent in a different state and not the State of Karnataka and the issue needs to be adjudicated having regard to the provisions of the Karnataka State Co-operative Societies Act. The issue was remanded for fresh consideration in the light of the law applicable to Co-operative Societies in the State of Karnataka. Since the facts and circumstances are identical, we deem it fit and proper to restore the issue to the AO for fresh consideration in the light of the observations made in the case of M/S.Hemmadi Fishermen’s Primary Co-operative Society Ltd. (supra). Examination of claim for deduction in respect of interest income received on deposits with Co-operative banks and deduction on interest income being interest on deposits other than co-operative banks, will be made only u/s.80P(2)(a)(i) and in so far as deduction u/s.80P(2)(d) of the Act is concerned, the same becomes not allowable in view of the decision of Karnataka High Court in the case of PCIT Vs. Totgars Co-operative Sale Society Ltd. [2017 (7) TMI 1049 - KARNATAKA HIGH COURT]
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