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2022 (8) TMI 256 - Income Tax
Deduction u/s 80P(2)(a)(i) - Claim denied as interest income was not received from investments with other co-operative societies - HELD THAT:- Hon'ble Supreme Court in the case of Mavilayi Service Co-operative Bank Ltd. v. CIT (2021 (1) TMI 488 - SUPREME COURT] held that, when the assessee is registered as a Co-operative Society under the respective State Acts, the interest income received for providing credit facilities to its members is entitled to deduction u/s 80P(2)(a)(i).
Thus we remit the issues raised in this appeal to the file of Ld.AO. The Ld.AO is directed to examine the deduction u/s 80P(2)(a)(i) of the I.T.Act in the light of the dictum laid down by the Hon'ble Supreme Court in the case of Mavilayi Service Co- operative Bank Ltd. v. CIT (supra).
Deduction u/s 80P(2)(d) - We notice that an identical issue was restored to the file of the A.O. by the Coordinate Bench in the case of Thannirupantha Primary Agricultural Credit Co-operative Society Ltd. [2021 (8) TMI 68 - ITAT BANGALORE] - Thus following the above said decision we restore this issue to the file of the A.O. for examining it afresh.
Alternative claim that the expenses incurred to earn the interest income should be allowed u/s 57(iii) of the Act, if it claim for deduction u/s 80P(2)(a)(i) or 80P(2)(d) is not allowed - Since we have already restored the issue of claim of deduction u/s 80P(2)(d) of the Act, we restore this alternative contention also to the file of the A.O., since the claim of the assessee gets support from the decision rendered in the case of Totgars Co-operative Sales Society Ltd.Vs. ITO [2017 (1) TMI 1100 - KARNATAKA HIGH COURT].